GE Vernova's Backlog Hits Record $176 Billion, $200 Billion Next

GE Vernova closed the second quarter of 2026 with a record $176 billion backlog, up $13 billion from the previous quarter, and CEO Scott Strazik says the company remains on track to reach $200 billion in 2027.

The milestone is arriving sooner than the company's earlier expectations. Utilities and data center operators are investing heavily in gas power, electrification, and grid infrastructure to meet rising electricity demand, and GE Vernova's order book is capturing that spending.

The Cambridge, Massachusetts-based energy technology company operates through three segments — Power, Electrification, and Wind — spanning gas power, nuclear, grid infrastructure, energy storage, and renewable energy. It became an independent public company after spinning off from General Electric in April 2024 and now carries a market cap of $254 billion.

The Quarter That Reset Expectations

GE Vernova reported second-quarter 2026 results on July 22. Revenue rose 22% year-over-year to $11.1 billion, with organic revenue up 12%. Net income climbed to $649 million, or $2.47 per share, from $492 million, or $1.86 per share — a 33% increase in EPS. Adjusted EBITDA jumped 62.3% to $1.3 billion from $770 million, and adjusted EBITDA margin expanded to 11.3% from 8.5% on higher volume, pricing, and productivity.

Cash generation improved dramatically. Cash from operating activities surged to $5.5 billion, compared with $367 million a year earlier. Free cash flow jumped to $5.1 billion from $194 million in Q2 2025.

Orders reached $24.2 billion, up 88% organically, led by Power and Electrification. Within Power, orders rose 134% organically to $16.7 billion, while Power revenue increased 14% to $5.5 billion. Electrification revenue rose 68% to $3.6 billion. Wind revenue declined 10% to $2 billion.

The company raised full-year 2026 guidance after the quarter. It now expects revenue of $45.5 billion to $46.5 billion, up from $44.5 billion to $45.5 billion, and free cash flow of $11.5 billion to $12.5 billion — sharply higher than the prior $6.5 billion to $7.5 billion range. Adjusted EBITDA margin guidance stayed at 12% to 14%. GE Vernova lifted its Power organic revenue-growth forecast to 18%-20% from 16%-18% and raised its Electrification revenue outlook to $14.5 billion-$15.0 billion from $14.0 billion-$14.5 billion. Wind is still expected to post low-double-digit organic revenue declines and roughly $400 million of segment EBITDA losses.

Gas Turbines and Data Centers Drive the Book

Gas Power equipment backlog plus slot reservation agreements increased to 116 GW from 100 GW. The company expects at least 125 GW under contract by year-end 2026. Electrification data-center orders had already exceeded $5 billion year-to-date, more than double the full-year 2025 total.

Management said it remains on track for 20 GW of annual gas-turbine output in Q3 2026, rising to 24 GW in 2028, and is taking steps toward 30 GW of annual output by 2030.

The Stock and the Street

GEV stock was up 46% year-to-date as of the Sept. 18 close and 48% over the past 52 weeks. The gains have not come smoothly. Shares hit a 52-week high of $1,195.94 in early July, then declined 17% over the past three months and 1% over the past month as investors reassessed the valuation and the sustainability of the AI-driven power infrastructure boom. The stock trades at 57.46 times forward earnings and 6.47 times sales, substantially above the sector average.

Analysts tracking the company project EPS to decline 13.2% year-over-year to $15.36 in fiscal 2026, then rise 56.8% to $24.09 in fiscal 2027.

The sell side remains firmly positive. Bank of America analyst Andrew Obin most recently maintained a "Buy" rating with a $1,310 price target, a call that followed Strazik's latest comments on the growing backlog. Morgan Stanley's David Arcaro maintained a "Buy" on Sept. 17 with a $1,310 target — $1,350, per his note. Bernstein's Sunaina Ocalan maintained an "Outperform" rating on Sept. 15 with a $1,298 target, reflecting confidence in the long-term power and electrification opportunity.

GEV carries a consensus "Strong Buy" rating. Of 30 analysts covering the stock, 22 advise a "Strong Buy," two suggest a "Moderate Buy," five give it a "Hold," and one a "Strong Sell." The average price target of $1,235.33 implies 30% upside, while the Street-high target of $1,450 signals as much as 52% upside from current levels.

With backlog visibility improving and demand expected to remain strong, the $200 billion backlog milestone — now expected early in 2027 — stands as the next concrete catalyst for investors weighing GE Vernova's growth trajectory through the end of the decade.