GEV Stock Forecast & Price Target

GE Vernova is supported by powerful demand in gas power and electrification, where 2Q26 revenue reached $11.1bn, adjusted EBITDA was $1.25bn, and orders surged 88% organically to $24.2bn, driving a 2.18x book-to-bill and a record backlog build. Its Power and Electrification businesses are benefiting from tight gas turbine and T&D markets, strong pricing, productivity gains, and an expanding data-center opportunity that management believes could scale materially as new products commercialize. With FY26 guidance raised to $45.5bn-$46.5bn of revenue and $11.5bn-$12.5bn of free cash flow, the company shows improving earnings visibility, while margin expansion and backlog accretion support a constructive long-term outlook despite Wind remaining a drag.

GE Vernova is facing a deteriorating fundamental backdrop despite better full-year revenue and FCF guidance, because the stock’s 8% drop followed a slight 2Q EBITDA miss and a 3Q guide that was only in line to slightly below consensus, with the midpoint about 6% below. The 25% capacity expansion announced for '30 raises oversupply concerns, while backlog growth to 125GW from 110GW is being offset by slower implied 2H additions of only 19GW and lower slot reservation payments, which point to a step-down in cash generation. Weakness in Wind is a major drag, with revenue down 10% y/y, orders down 39% y/y, and EBITDA margin at (13.6)%, while regulatory, supply-chain, transmission, and AI-driven electricity-demand risks create further uncertainty across the broader business.