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Generac Holdings Inc. (GNRC - Free Report) is scheduled to report third-quarter 2026 results on Oct. 28.
The Zacks Consensus Estimate for the bottom line currently stands at $2.38 and has declined 2 cents over the past 60 days.
Image Source: Zacks Investment Research
The same for revenues currently stands at $1.31 billion, up 17.9% year over year.
GNRC’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average surprise of 13.7%.
Image Source: Zacks Investment Research
Let us see how GNRC is expected to fare in terms of revenues and earnings this time.
Key Catalysts for GNRC’s Q3 Earnings
Generac entered third-quarter 2026 against a backdrop of increasing momentum in its Commercial & Industrial (C&I) segment, driven by robust data center demand, while Residential trends remain back-half weighted.
The company expects third-quarter net sales to grow in the high-teens percentage range year over year, with further acceleration anticipated in the fourth quarter driven by data center ramp and easing year-over-year comparisons for Residential segment.
The C&I segment is expected to remain Generac's primary growth driver, supported by sustained investments in data center infrastructure. Generac generated more than $100 million of data center revenues in the second quarter and secured two multi-year hyperscale supply agreements.
On the last earnings call, Generac noted that the data center backlog reached $1.6 billion as of July 2026, including roughly $1 billion of new orders received in the prior 90 days, but excluding any committed volumes from the second hyperscale customer. Management also raised its 2026 data center revenue expectation to roughly $450 million, underscoring the rapid scaling of this business. Management indicated that approximately $250 million of data center revenues were expected to be recognized in the second half of 2026.
The company raised its full-year C&I sales growth outlook to the low-30% range from the previously anticipated mid-to-high-20% range. Continued demand from data centers, mobile equipment and C&I energy storage systems supports a broader growth profile beyond a single end market.
Generac Holdings Inc. Price, Consensus and EPS Surprise
Since reporting the second quarter, management announced a massive long-term supply deal with Amazon (AMZN - Free Report) in September. The company will supply backup power generators for Amazon data centers, with initial deliveries expected to total $2.4 billion across 2027 and 2028. The Amazon agreement adds considerable scale and visibility to a data center business that is fast emerging as Generac’s key growth engine.
The company is ramping production at existing domestic and international facilities and accelerating the outfitting of its Sussex, WI, facility. On the second-quarter earnings call, management said production at Sussex was expected to begin by the end of the third quarter, roughly a quarter ahead of its prior schedule. Progress at this facility will be an important area to monitor in the upcoming earnings announcement. Management also acquired the Belvidere, IL, packaging facility, set to become operational in the first quarter of 2027. The Enercon buyout (completed earlier this year) is expected to boost Generac’s vertical integration and support margin expansion for megawatt backup power offerings.
However, execution risks associated with capacity additions and component availability remain important considerations.
While the data center opportunity is driving investor excitement, Generac’s residential business still represents a major part of it. Improving home standby generator shipments bode well, although weaker demand for portable generators and energy storage systems could remain headwinds.
Residential energy-storage sales in 2025 benefited from Puerto Rico’s energy grant-related program. However, with the completion of the program, energy storage systems remain pressured. The residential solar and storage market also remains challenging due to policy and macro headwinds. Management reduced its 2026 Residential growth outlook to high single-digit growth from roughly 10%, citing the low outage environment, affordability concerns and a small divestiture.
Meanwhile, ecobee's growing connected-home base and the ramp-up of Generac's PWRmicro solar microinverters might have provided incremental support.
Profitability will be another important area to watch at the upcoming third-quarter results. Management anticipates third-quarter EBITDA margin to remain broadly consistent with the second quarter after excluding tariff refunds.
Generac expects second-half gross margins (excluding tariff refunds) to remain relatively stable across the third and fourth quarters, broadly consistent with its underlying full-year guidance.
An increasing mix of C&I revenues, which generally carry relatively lower margins than residential products, and investments in data center capacity could weigh down on profitability.
What Our Model Says for GNRC
Our proven model does not conclusively predict an earnings beat for Generac this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
GNRC has an Earnings ESP of -0.07% and a Zacks Rank #3 at present.
GNRC’s shares are down 15.1% in the past six months, compared with the Zacks Manufacturing-General Industrial industry’s decline of 10.9%. The broader Zacks Computer & Technology sector and the S&P 500 composite have gained 4.4% and 5.3%, respectively.
Image Source: Zacks Investment Research
Generac faces competition in the data center space from the likes of Cummins (CMI - Free Report) and Caterpillar (CAT - Free Report) .
CMI and CAT have lost 21.7% and 17.1%, respectively, over the same time frame.
GNRC’s Valuation
GNRC’s shares are trading at a forward price/earnings (P/E) multiple of 15.72X, marginally lower than the Manufacturing-General Industrial industry’s ratio of 19.59X.
Image Source: Zacks Investment Research
In comparison, Cummins and Caterpillar trade at a forward P/E multiple of 15.16X and 19.69X, respectively.
Investment Outlook: Hold or Fold?
Considerable momentum in its data center business remains the key consideration, while the Amazon agreement adds an important dimension to the company's long-term growth potential.
However, residential market softness, mix-related margin pressure and capacity expansion risks warrant caution in the near term.
Existing investors may prefer to stay invested, while new investors are better off waiting for greater clarity on execution and profitability.
View the Zacks #1 Rank List
Image: Bigstock
Generac to Report Q3 Earnings: Should Investors Hold or Fold?
Key Takeaways
Generac Holdings Inc. (GNRC - Free Report) is scheduled to report third-quarter 2026 results on Oct. 28.
The Zacks Consensus Estimate for the bottom line currently stands at $2.38 and has declined 2 cents over the past 60 days.
Image Source: Zacks Investment Research
The same for revenues currently stands at $1.31 billion, up 17.9% year over year.
GNRC’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average surprise of 13.7%.
Image Source: Zacks Investment Research
Let us see how GNRC is expected to fare in terms of revenues and earnings this time.
Key Catalysts for GNRC’s Q3 Earnings
Generac entered third-quarter 2026 against a backdrop of increasing momentum in its Commercial & Industrial (C&I) segment, driven by robust data center demand, while Residential trends remain back-half weighted.
The company expects third-quarter net sales to grow in the high-teens percentage range year over year, with further acceleration anticipated in the fourth quarter driven by data center ramp and easing year-over-year comparisons for Residential segment.
The C&I segment is expected to remain Generac's primary growth driver, supported by sustained investments in data center infrastructure. Generac generated more than $100 million of data center revenues in the second quarter and secured two multi-year hyperscale supply agreements.
On the last earnings call, Generac noted that the data center backlog reached $1.6 billion as of July 2026, including roughly $1 billion of new orders received in the prior 90 days, but excluding any committed volumes from the second hyperscale customer. Management also raised its 2026 data center revenue expectation to roughly $450 million, underscoring the rapid scaling of this business. Management indicated that approximately $250 million of data center revenues were expected to be recognized in the second half of 2026.
The company raised its full-year C&I sales growth outlook to the low-30% range from the previously anticipated mid-to-high-20% range. Continued demand from data centers, mobile equipment and C&I energy storage systems supports a broader growth profile beyond a single end market.
Generac Holdings Inc. Price, Consensus and EPS Surprise
Generac Holdings Inc. price-consensus-eps-surprise-chart | Generac Holdings Inc. Quote
Since reporting the second quarter, management announced a massive long-term supply deal with Amazon (AMZN - Free Report) in September. The company will supply backup power generators for Amazon data centers, with initial deliveries expected to total $2.4 billion across 2027 and 2028. The Amazon agreement adds considerable scale and visibility to a data center business that is fast emerging as Generac’s key growth engine.
The company is ramping production at existing domestic and international facilities and accelerating the outfitting of its Sussex, WI, facility. On the second-quarter earnings call, management said production at Sussex was expected to begin by the end of the third quarter, roughly a quarter ahead of its prior schedule. Progress at this facility will be an important area to monitor in the upcoming earnings announcement. Management also acquired the Belvidere, IL, packaging facility, set to become operational in the first quarter of 2027. The Enercon buyout (completed earlier this year) is expected to boost Generac’s vertical integration and support margin expansion for megawatt backup power offerings.
However, execution risks associated with capacity additions and component availability remain important considerations.
While the data center opportunity is driving investor excitement, Generac’s residential business still represents a major part of it. Improving home standby generator shipments bode well, although weaker demand for portable generators and energy storage systems could remain headwinds.
Residential energy-storage sales in 2025 benefited from Puerto Rico’s energy grant-related program. However, with the completion of the program, energy storage systems remain pressured. The residential solar and storage market also remains challenging due to policy and macro headwinds. Management reduced its 2026 Residential growth outlook to high single-digit growth from roughly 10%, citing the low outage environment, affordability concerns and a small divestiture.
Meanwhile, ecobee's growing connected-home base and the ramp-up of Generac's PWRmicro solar microinverters might have provided incremental support.
Generac Holdings Inc. Revenue (Quarterly)
Generac Holdings Inc. revenue-quarterly | Generac Holdings Inc. Quote
Profitability will be another important area to watch at the upcoming third-quarter results. Management anticipates third-quarter EBITDA margin to remain broadly consistent with the second quarter after excluding tariff refunds.
Generac expects second-half gross margins (excluding tariff refunds) to remain relatively stable across the third and fourth quarters, broadly consistent with its underlying full-year guidance.
An increasing mix of C&I revenues, which generally carry relatively lower margins than residential products, and investments in data center capacity could weigh down on profitability.
What Our Model Says for GNRC
Our proven model does not conclusively predict an earnings beat for Generac this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
GNRC has an Earnings ESP of -0.07% and a Zacks Rank #3 at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
GNRC Stock vs. Industry
GNRC’s shares are down 15.1% in the past six months, compared with the Zacks Manufacturing-General Industrial industry’s decline of 10.9%. The broader Zacks Computer & Technology sector and the S&P 500 composite have gained 4.4% and 5.3%, respectively.
Image Source: Zacks Investment Research
Generac faces competition in the data center space from the likes of Cummins (CMI - Free Report) and Caterpillar (CAT - Free Report) .
CMI and CAT have lost 21.7% and 17.1%, respectively, over the same time frame.
GNRC’s Valuation
GNRC’s shares are trading at a forward price/earnings (P/E) multiple of 15.72X, marginally lower than the Manufacturing-General Industrial industry’s ratio of 19.59X.
Image Source: Zacks Investment Research
In comparison, Cummins and Caterpillar trade at a forward P/E multiple of 15.16X and 19.69X, respectively.
Investment Outlook: Hold or Fold?
Considerable momentum in its data center business remains the key consideration, while the Amazon agreement adds an important dimension to the company's long-term growth potential.
However, residential market softness, mix-related margin pressure and capacity expansion risks warrant caution in the near term.
Existing investors may prefer to stay invested, while new investors are better off waiting for greater clarity on execution and profitability.