What Is Driving The Move In GE Vernova Stock?

Shares of GE Vernova (GEV) returned 60.1% over the year to October 8, 2026, easily outpacing the 16.3% return for the S&P 500. Customers spent those twelve months placing steady orders for gas turbines and power equipment for data centers. During that timeframe, on July 22, 2026, management raised its 2026 revenue and free cash flow guidance. What has that changed at GE Vernova, and what has it not?

How Big Is GE Vernova’s Order Backlog?

When management reported its second quarter of 2026 on July 22, GE Vernova held a backlog of signed but undelivered work totaling $176 billion. That figure rose $13 billion from the prior quarter, and management said the company is on track to reach $200 billion in 2027. New orders are arriving at higher prices as well. Management said gas power equipment orders in the first half of 2026 were priced more than 20% above those of the fourth quarter of 2025.

GE Vernova’s Sales And Margin Are Both Rising

The company is converting more of those orders into sales each year. Revenue over the last twelve months grew 13.0%, accelerating from 8.5% growth the year before. Management now expects 2026 revenue of $45.5 billion to $46.5 billion, representing $1 billion more than it expected before. GE Vernova’s operating margin has climbed as well. Standing at 0.4% two years ago and 1.8% a year ago, the margin reached 4.4% over the last twelve months.

Customers pay deposits when they order, allowing GE Vernova to collect cash before booking sales. Pointing to the strength in orders and the down payments that accompanied them, management raised its 2026 free cash flow guidance to a range of $11.5 billion to $12.5 billion, up from $6.5 billion to $7.5 billion.

GE Vernova still earns a thin operating profit on what it sells. Its 4.4% operating margin compares with 18.5% for the S&P 500. Yet investors currently pay 6.5 times sales for the stock, against 3.0 for the index. The price therefore appears to assume that GE Vernova will deliver its backlog at much better margins than it earns today.

Wind has not shared in the orders. Wind orders fell 40% in the second quarter of 2026. During that quarter, the division lost $275 million before interest, taxes and depreciation, a measure known as EBITDA. Management said it remains difficult to say when U.S. wind orders will turn. The company guided Wind’s EBITDA to about break-even for the third quarter of 2026, and those results are still pending. If GE Vernova reports Wind at about break-even on EBITDA for that quarter, the division’s losses on that measure will have narrowed from the $275 million of the second quarter.

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