GE Vernova’s (GEV) latest quarter highlights why the power equipment maker is a Wall Street favorite.
Shares of the Cambridge, Mass.-based company rallied 15% on Wednesday after orders for gas turbines and other equipment jumped in the second quarter — thanks to the AI-boom build-out of data centers, which have fueled electricity demand. It continued surging through the rest of the week to new all-time highs, up over 12% for the week.
GE Vernova posted adjusted earnings of $1.78 per share, versus estimates of $1.55. Revenue also came in above expectations at $9.11 billion, topping estimates of $8.8 billion.
“We’ve already received almost $500 million in orders in the first half of 2025 versus $600 million in full year 2024, so this growth market continues to accelerate,” CEO Scott Strazik told analysts during the company’s earnings call. He highlighted “strong demand” from data centers.
Alongside strength in gas services, steam services orders, which support nuclear, rose 30% during the quarter.
Nuclear power is another key electricity source for hyperscalers, such as Amazon (AMZN), Microsoft (MSFT), Google (GOOG), and Meta (META), which are looking for all and any power sources to fuel AI growth.
The so-called Big Tech hyperscalers, large tech companies operating cloud and AI data centers around the world, have said they will spend a cumulative $325 billion in 2025 as they rush to build out infrastructure.
Wall Street sees GE Vernova’s backlogs, or orders that have been placed, as a big beneficiary of the data center trend.
“We believe GEV’s expanded equipment and services backlog, which grew over $14B Y/Y to $128.7B, supports long-term sales visibility and improves our confidence in the company’s margin and EPS growth potential,” CFRA Research analyst Daniel Rich said Wednesday.
Read more about GE Vernova’s stock moves and today’s market action.
Since spinning out of GE (GE) in April 2024, GE Vernova has positioned itself at the intersection of data centers, AI, and rising power demand.
One Wall Street analyst dubbed the company the “supermarket” for the electric power industry, offering everything from natural gas turbines for generating electricity to power plant and grid modernization services to wind turbine construction.
The company is also expanding its footprint in electrical grid software. Earlier this week, GE Vernova announced plans to acquire France-based AI tools startup Alteia.
“With this acquisition, we are buying an existing partner that uses AI and visualization technologies to help our customers manage and orchestrate the grid,” Strazik said during the earnings call, referring to the move as “another important step forward for our electrification software business.”
finance.yahoo.com
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