GE Vernova's shares declined by 8% in premarket trading on July 22, 2026, despite the company increasing its full-year 2026 revenue and free cash flow forecasts. The company's stock drop was attributed to a miss on second-quarter core profit estimates and what some analysts described as "too high" expectations regarding AI-driven data center demand. GE Vernova reported adjusted core earnings of $1.25 billion for the quarter, falling short of analysts' estimates of $1.28 billion.
The company raised its 2026 revenue guidance to $45.5 billion-$46.5 billion, up from $44.5 billion-$45.5 billion, and increased its free cash flow forecast to $11.5 billion-$12.5 billion from $6.5 billion-$7.5 billion. Revenue for the second quarter grew by 22% year-over-year to $11.1 billion, exceeding analysts' expectations of $10.73 billion. Orders also saw significant growth, totaling $24.2 billion, an 88% organic increase, primarily driven by strong demand in the Power and Electrification segments, with data center orders reaching over $5 billion year-to-date, more than doubling its 2025 total.
Despite the positive outlook and strong segment performance, GE Vernova also flagged an expected $100 million to $200 million hit in 2026 due to global tariffs, which could increase its costs. The company's wind segment continued to underperform, with revenue declining 10% to $2.03 billion and core loss widening to about $275 million, as weaker onshore equipment deliveries and higher offshore wind project costs weighed on results. In contrast, the Electrification unit's core profit rose to $671 million, and the Power unit's profit increased to $1.03 billion, nearly a 31.3% rise.
