GE Vernova reports strong third quarter 2026 financial performance, raises 2026 guidance, and increases share repurchase authorization Third Quarter 2026
GE Vernova Inc. (GEV) filed an SEC Form 8-K — Results of Operations and Financial Condition. 1 Defined as remaining performance obligation (RPO) *Non-GAAP Financial Measure Page 1 GE Vernova reports strong third quarter 2026 financial performance, raises 2026 guidance, an d increases share repurchase authorization Third Quarter 2026 Highlights: • Orders of $29 B, + 96% o
How this was made
The 30-second read
Why it matters
The raised guidance and expanded buyback program signal confidence in demand for power and electrification equipment, likely supporting the stock price.
Market read
The filing provides fresh, material guidance and capital return information that can drive immediate trading decisions.
What to watch
Potential regulatory or supply-chain constraints on gas equipment could temper growth.
GE Vernova reports strong third quarter 2026 financial performance, raises 2026 guidance, and increases share repurchase authorization
Third-quarter revenue, orders, profitability, cash generation and backlog all increased, led by Power and Electrification. The company raised 2026 revenue, adjusted EBITDA margin and free-cash-flow guidance while increasing its share repurchase authorization.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $12.64B | – | 27 % |
| Organic revenues, three months ended September 30, 2026non-GAAP | $11.68B | – | 18 % |
| Total equipment revenues, three months ended September 30, 2026GAAP | $8.34B | – | 42 % |
| Equipment organic revenues, three months ended September 30, 2026non-GAAP | $7.40B | – | 26 % |
| Total services revenues, three months ended September 30, 2026GAAP | $4.30B | – | 5 % |
| Services organic revenues, three months ended September 30, 2026non-GAAP | $4.27B | – | 6 % |
| Net income, three months ended September 30, 2026GAAP | $1.29B | – | $836 |
| Net income margin, three months ended September 30, 2026GAAP | 10.2 % | – | 570 bps |
| Diluted EPS, three months ended September 30, 2026GAAP | $4.81 | – | 193 % |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $1.94B | – | $1,131 |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 15.4 % | – | 730 bps |
| Adjusted organic EBITDA, three months ended September 30, 2026non-GAAP | $1.72B | – | F |
| Adjusted organic EBITDA margin, three months ended September 30, 2026non-GAAP | 14.7 % | – | 690 bps |
| Cash from operating activities, three months ended September 30, 2026GAAP | $6.06B | – | $5,077 |
| Free cash flow, three months ended September 30, 2026non-GAAP | $5.41B | – | $4,677 |
| Gross additions to property, plant and equipment and internal-use software, three months ended September 30, 2026GAAP | −$647M | – | – |
| Total revenues, nine months ended September 30, 2026GAAP | $33.08B | – | 22 % |
| Organic revenues, nine months ended September 30, 2026non-GAAP | $30.41B | – | 13 % |
| Net income, nine months ended September 30, 2026GAAP | $6.69B | – | $5,478 |
| Net income margin, nine months ended September 30, 2026GAAP | 20.2 % | – | 1,570 bps |
| Diluted EPS, nine months ended September 30, 2026GAAP | $24.81 | – | 463 % |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $4.09B | – | $2,050 |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 12.4 % | – | 490 bps |
| Adjusted organic EBITDA, nine months ended September 30, 2026non-GAAP | $3.64B | – | 92 % |
| Adjusted organic EBITDA margin, nine months ended September 30, 2026non-GAAP | 12.0 % | – | 500 bps |
| Cash from operating activities, nine months ended September 30, 2026GAAP | $16.74B | – | $14,229 |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $15.31B | – | $13,405 |
| Gross additions to property, plant and equipment and internal-use software, nine months ended September 30, 2026GAAP | −$1.43B | – | – |
| Orders, three months ended September 30, 2026other | $29.3B | – | + 96% organically |
| Total backlogother | $197B | growth of $ 20 B sequentially | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| PowerRevenue growth was led by aeroderivative and heavy-duty deliveries and favorable price. Segment EBITDA was $1,297, segment EBITDA margin was 21.4 %, and margin increased 800 bps. | $6.07B | – | 25 % |
| ElectrificationRevenue growth was inclusive of Prolec GE and was driven by increased volume in alternating current substation solutions, high voltage direct current solutions, switchgear and transformers. Segment EBITDA was $739, segment EBITDA margin was 19.1 %, and margin increased 400 bps. | $3.86B | – | 51 % |
| WindRevenue growth reflected higher services at Onshore Wind and higher revenue at Offshore Wind, partially offset by Onshore Wind equipment deliveries. Segment EBITDA was $72, segment EBITDA margin was 2.6 %, and margin increased 490 bps. | $2.74B | – | 4 % |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
2026 outlook
- Revenue$46.5-$47.5 billion
- NoteAdjusted EBITDA margin* of 13.5%-14.5%
- NoteFree cash flow* of $16-$ 17 billion
- NotePower: 19%-21% organic revenue* growth
- NotePower: 19%-21% segment EBITDA margin
- NoteElectrification: Revenue of $14.5-$15.0 billion, including approximately $3.1 billion from Prolec GE
- NoteElectrification: 18%-20% segment EBITDA margin, now trending toward the higher end of the range
- NoteWind: Organic revenue* down mid-single digits
- NoteWind: $400-$500 million of segment EBITDA losses
- NoteBacklog to exceed $200 billion in the fourth quarter
- NoteExit 2026 with at least 130 GW of gas equipment under contract
Capital returns
- Repurchased approximately 1.7 million shares for $1.6 billion in the third quarter of 2026.
- Repurchased approximately 1.4 million shares for $1.3 billion from October 1 to October 23, 2026.
- Since the inception of its program in December 2024, repurchased 15.6 million shares for $ 9.9 billion at an average price of approximately $ 635 per share.
- In October 2026, the Board of Directors approved a share repurchase authorization increase to $20 billion, from the prior authorization of $10 billion, with $10.1 billion remaining.
- Paid a $0.50 per share quarterly dividend.
- On September 30, 2026, declared a $0.50 per share quarterly dividend, payable on November 24, 2026 to stockholders of record as of October 27, 2026.
- $5.7B in capital returned to shareholders in the first nine months of 2026.
What drove it
- Power orders of $21.8 billion increased + 178% organically, primarily from Gas Power equipment strength driven by higher volume and price.
- Power services orders increased 12% organically, driven by Gas Power and Nuclear Power.
- Electrification orders of $5.4 billion decreased (9)% organically because of large synchronous condenser orders in the third quarter of last year, while demand for grid equipment remained strong.
- Electrification equipment backlog increased to $ 42.2 billion, up $ 15.7 billion, or 60% year-over-year, including $5 billion from Prolec GE.
- Wind orders of $2.1 billion increased 16% organically due to Onshore Wind, primarily in North America.
- Margins expanded from higher price, volume, and productivity.
- Gas Power equipment backlog and slot reservation agreements grew from 116 to 122 GW.
Concerns
- Wind generated a segment EBITDA loss of $(585) for the nine months ended September 30, 2026, compared with $(373) for the prior-year period, and its segment EBITDA margin was (9.4) % versus (5.5) %.
- Wind guided to $400-$500 million of segment EBITDA losses for 2026.
- Electrification third-quarter orders decreased (9)% organically due to large synchronous condenser orders in the third quarter of last year.
- The announced Trench Group acquisition is subject to customary regulatory approvals and is expected to close in late 2027.
- The company cited risks related to supply chain disruptions, capacity constraints, tariffs, foreign currency, product quality, project execution and the integration of Trench Group.
What to watch
- Whether total backlog exceeds $200 billion in the fourth quarter.
- Progress toward at least 130 GW of gas equipment under contract by year-end 2026.
- Power execution against 19%-21% organic revenue growth and 19%-21% segment EBITDA margin guidance.
- Electrification revenue contribution of approximately $3.1 billion from Prolec GE and margin performance toward the higher end of the 18%-20% range.
- Wind's execution toward organic revenue down mid-single digits and $400-$500 million of segment EBITDA losses.
- Regulatory approvals and closing timing for the $9.0 billion USD equivalent Trench Group acquisition.
Balance sheet and cash flow
- Cash balance of $16.8 B.
- The CFO said the company ended the quarter with a cash balance of approximately $17 billion, up $4 billion sequentially.
- Cash from operating activities of $6,057 for the three months ended September 30, 2026.
- Free cash flow of $5,409 for the three months ended September 30, 2026.
- Free cash flow increased $ 4.7 billion, primarily due to higher positive benefits from working capital and stronger adjusted EBITDA*, partially offset by higher taxes.
- Invested $0.6 billion in capital expenditures in the third quarter of 2026.
- Entered into agreements to transfer a portion of retiree benefit obligations to an insurer, resulting in approximately $350 million paid in the quarter.
Analysis
GE Vernova reported broad third-quarter growth, with GAAP revenue of $12,642, up 27 %, and organic revenue of $11,676, up 18 %. Orders were $29.3 billion, up + 96% organically, and total backlog reached $197 B after growth of $ 20 B sequentially. The order environment was led by Power equipment and continued services strength, while Electrification maintained strong demand for grid equipment despite a (9)% organic decline in segment orders against a large prior-year synchronous-condenser comparison.
Profitability expanded sharply. Net income was $1,289 and net income margin was 10.2 %, compared with $453 and 4.5 % in the prior-year quarter. Adjusted EBITDA was $1,943, with adjusted EBITDA margin of 15.4 %, up 730 bps. Management attributed the margin improvement to higher price, volume and productivity. Power produced segment EBITDA margin of 21.4 %, Electrification produced 19.1 %, and Wind returned to positive quarterly segment EBITDA of $72 with a 2.6 % margin.
Mix favored Power and Electrification equipment. Power revenue increased 25 % as aeroderivative and heavy-duty deliveries and favorable price improved results. Electrification revenue increased 51 %, inclusive of Prolec GE, and increased 16% organically, supported by Grid Systems Integration and Power Transmission. Wind revenue increased 4 %, but the segment remained loss-making over the nine-month period, with segment EBITDA of $(585) and a (9.4) % margin.
Cash generation was substantial. Cash from operating activities was $6,057 and free cash flow was $5,409 in the quarter, with the release attributing the increase in free cash flow primarily to working-capital benefits and stronger adjusted EBITDA, partly offset by higher taxes. The company reported a $16.8 B cash balance, continued share repurchases and increased its authorization to $20 billion. It also announced an agreement to acquire Trench Group for $9.0 billion USD equivalent, with closing expected in late 2027 subject to customary regulatory approvals.
Guidance was raised across revenue, adjusted EBITDA margin and free cash flow. The company now expects 2026 revenue of $46.5-$47.5 billion, adjusted EBITDA margin of 13.5%-14.5%, and free cash flow of $16-$ 17 billion. Segment guidance calls for higher Power growth and margin expectations, Electrification margin toward the higher end of its range, and improved Wind organic-revenue expectations, although Wind is still expected to report segment EBITDA losses of $400-$500 million.
Management, verbatim
We delivered strong financial results in the third quarter as demand for electricity infrastructure increases around the world. We now expect our backlog to exceed $200 billion in the fourth quarter, with improved margins, and to exit 2026 with at least 130 GW of gas equipment under contract. Given our performance and confidence in our trajectory, we are raising our 2026 financial guidance.
Scott Strazik, GE Vernova CEO
We delivered another strong quarter with robust orders and revenue growth, margin expansion, and significant free cash flow generation. Our backlog continues to expand driven by equipment growth at Power and Electrification, at improved margins from favorable price and disciplined underwriting, and services growth at Power.
Ken Parks, GE Vernova CFO
We ended the quarter with a cash balance of approximately $17 billion, up $4 billion sequentially, increasing our confidence in making high-growth, accretive investments and returning cash to shareholders through our dividend and increased share repurchase program. Based on our strong financial performance, we are raising our guidance for 2026 revenue, adjusted EBITDA margin, and free cash flow.
Ken Parks, GE Vernova CFO
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating income was not reported.
- Operating margin was not reported.
- Debt balance was not reported.
- Tax rate was not reported.
- Prior-quarter figures for reported metrics were not reported.
- A separate previous-release outlook was not provided for formal actual-versus-prior-guidance comparisons.
- Non-GAAP EPS was not reported.
- Segment revenue, orders, cost of revenues, selling, general and administrative expenses, research and development expenses, other segment income or expenses, and segment EBITDA for every individual reporting period are not all separately presented in key_metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
GE Vernova, the industrial arm of General Electric, filed an 8‑K reporting Q3 2026 results, higher guidance, and a larger share repurchase program.
Ticker impact
GE Vernova raised its 2026 revenue and EBITDA guidance and increased its share repurchase authorization to $20B.
likely upward pressure as investors price in higher guidance and expanded buyback.
The company disclosed higher revenue and EBITDA margins and doubled its buyback ceiling, which historically drives buying interest.
Market effects
Energy equipment and power sectors may see improved sentiment from GE Vernova's strong order growth.
U.S. industrial and utility markets could benefit from higher demand for electrification equipment.
Positive outlook for global power infrastructure spending may lift related exporters.
Counterpoint
If the guidance raise is already priced in, the stock could face short-term profit taking.
Key entities
- companyGE Vernova Inc.
Industrial power and electrification equipment manufacturer.
- rating_agencyFitch Ratings
Upgraded GE Vernova's credit rating to A‑.
