NEW YORK, July 25, 2026, 17:09 EDT — U.S. markets have ended the session.
- GE Vernova NYSE:GEV ended Friday at $1,014.75, marking a 4.1% decline over the week.
- Orders for the second quarter amounted to 2.18 times revenue, with backlog standing at $176 billion.
- Free cash flow for the first half reached 82.5% of the midpoint of 2026 guidance.
GE Vernova fell at the end of a turbulent earnings week, even after boosting its 2026 forecast. Attention among investors moved away from demand and instead centered on when cash would be received.
The company produced $9.897 billion in free cash flow during the first half, based on its own non-GAAP definition. The updated full-year outlook stands between $11.5 billion and $12.5 billion.
By June 30, 82.5% of the guidance midpoint had been reached, leaving roughly $2.1 billion for the remainder of the year.
The regulatory document attributes the atypically front-heavy nature to several factors. Operating cash flow for the first half was $10.7 billion, featuring an $11.7 billion boost from working-capital inflows. Contract liabilities and deferred income added $13.7 billion, chiefly from advance payments by customers.
The deposits boost liquidity and demonstrate customer loyalty. However, they create a higher benchmark for future cash comparisons when reservation payments return to typical levels.
GE Vernova’s disclosed numbers set the context for the investor decision:
| Operating measure | Calculation | Result |
|---|---|---|
| Q2 order-to-revenue ratio | $24.2B ÷ $11.104B | 2.18x |
| Backlog versus 2026 revenue midpoint | $176B ÷ $46.0B | 3.83x |
| First-half free cash flow as a proportion of full-year midpoint | $9.897B ÷ $12.0B | 82.5% |
| First-half working-capital inflow to free cash flow | $11.7B ÷ $9.897B | 118.2% |
Demand stayed robust. Orders climbed 88% on an organic basis to $24.2 billion. The backlog grew by $13 billion from the previous quarter, reaching $176 billion. Chief Executive Scott Strazik said “GE Vernova’s momentum is building.” SEC
Power orders totaled $16.7 billion, climbing 135% on the year. The segment’s EBITDA margin widened to 18.8%. Orders for Electrification increased to $6.3 billion, with the margin at 18.4%.
Orders from data centers surpassed $5 billion in the first half, more than twice the amount recorded for the entirety of 2025. GE Vernova anticipates it will have no less than 125 gigawatts of gas equipment contracted by the close of the year.
Wind continued to underperform. Orders dropped nearly 40%, and the segment posted a wider EBITDA loss of $275 million, compared to $165 million previously. GE Vernova is projecting around $400 million in Wind losses for 2026.
Adjusted EBITDA for the quarter came in at $1.25 billion, falling short of analysts’ expectations. The firm maintained its full-year EBITDA margin guidance at 12% to 14%. According to William Blair analyst Jed Dorsheimer, investors were looking for “another EBITDA beat and raise with margin expansion.” Reuters
GE Vernova dropped 8.7% on Wednesday, climbed back 4.7% on Thursday, then slipped another 1.6% on Friday, in a volatile stretch. Despite this, the stock is still up 55.3% in 2026.
Peer companies Eaton NYSE:ETN and Vertiv NYSE:VRT outperformed over the last five sessions. Year-to-date, the gap between power-infrastructure stocks has grown wider.
| Company | Friday close | Five-day change | 2026 change | Market value |
|---|---|---|---|---|
| GE Vernova NYSE:GEV | $1,014.75 | -4.07% | +55.26% | $274B |
| Eaton NYSE:ETN | $404.07 | +1.02% | +26.86% | $157B |
| Vertiv NYSE:VRT | $290.36 | +0.28% | +79.22% | $114B |
Market valuations are rounded based on closing figures from Friday.
The five-day drop points to GE Vernova’s fall being linked to earnings rather than a wider pullback in grid and data-center infrastructure stocks.
Investors will get key peer updates in the coming week. Vertiv is set to announce its second-quarter earnings on Wednesday, July 29, with Eaton scheduled to release results on Friday, July 31. Orders and margins from both companies will gauge the strength of infrastructure demand.
GE Vernova does not have any investor events planned for next week. The company’s next earnings webcast is set for October 28.
Risks: Increases in wind project expenses, delays in scaling up production, and vulnerability to tariffs may hinder backlog conversion. GE Vernova anticipates tariffs will have a $100 million to $200 million impact this year. Reduced pace of data-center construction would also weigh on new order intake.
The immediate hurdle is no longer just achieving another booking record. Investors now seek proof that backlog turns into profit margins and steady cash flow following the surge in first-half deposits.
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