New York, February 4, 2026, 12:27 ET — Regular session
- Shares of GE Vernova dropped roughly 7% following a streak of record highs
- $2.6 billion bond sale linked to Prolec GE transaction moves toward settlement
- Xcel Energy partners up and a broker upgrade spark interest as investors rethink risk
GE Vernova shares dropped 6.6% to $729.05 by midday Wednesday, after starting the session close to $795. The stock swung widely, trading as low as $728 and as high as $797.
This slide is significant as GE Vernova has become a popular proxy for U.S. power demand and grid investment, but now it’s piling on debt-fueled acquisitions. Traders are parsing what this means for leverage and cash flow amid a choppy market, where the S&P 500-tracking SPDR fund is down 0.4% and the Nasdaq-100 fund has fallen roughly 1.7%.
Baird raised its rating on GE Vernova to “Outperform” Wednesday, boosting the price target from $701 to $923. Analyst Ben Kallo said Baird is “moving back to Outperform,” noting the energy-infrastructure cycle remains “in the early innings.” He also pushed back against worries about gas power overcapacity, calling those concerns “farther away than believed.” (Investing)
Just a day before, Xcel Energy and GE Vernova announced a strategic alliance agreement that secures five F-class gas turbines and reserves capacity for several gigawatts of wind projects. Xcel CEO Bob Frenzel highlighted that the deal will enable the utility to “move at the speed and scale necessary” to drive grid modernization. GE Vernova CEO Scott Strazik added that the partnership puts both companies in a stronger position “to innovate and execute.” (Xcel Energy Newsroom)
GE Vernova announced Monday it has acquired the remaining 50% stake in transformer manufacturer Prolec GE for $5.275 billion, financing the deal with an equal split between cash and debt. Philippe Piron, CEO of Electrification, noted, “Our customers are asking for more capacity from the grid,” as Prolec is integrated into the Electrification business. (GE Vernova)
The financing comes via a $2.6 billion senior notes offering—a corporate bond deal set to close Wednesday, per a pricing term sheet. The filing detailed $600 million in 2031 notes at 4.25%, $1 billion in 2036 notes at 4.875%, and $1 billion in 2056 notes at 5.5%. Ratings are expected to land at BBB from S&P and BBB+ from Fitch. (Streetinsider)
The selloff comes after a steep rally. GE Vernova ended Tuesday at $780.25, marking its seventh consecutive day of gains and hitting a new 52-week high, per MarketWatch data. (MarketWatch)
Weak spots linger. Last week, the company reported a $598 million EBITDA loss in its wind segment for 2025 and expects roughly $400 million in losses next year, citing ongoing offshore turbine problems and project delays. (Reuters)
Rivals have been pulled into the scramble for large turbines, with Siemens Energy and Mitsubishi Heavy Industries frequently cited by analysts discussing supply, pricing, and expanding capacity. Reuters noted last December that deliveries were set to climb after those competitors raised their targets. (Reuters)
The focus now shifts from headlines to results: can the debt load and the Prolec merger actually boost cash flow as the wind segment steadies? GE Vernova’s next key date is the Q1 2026 earnings webcast, set for April 22. (GE Vernova)
