Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 22, 2026 · Beat 5 of last 7 quarters
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GE Vernova's results reinforce the accelerating AI infrastructure buildout, with data center demand driving record gas turbine orders and electrification backlog. The company's capacity expansion to 30 GW of gas turbines by 2030 and its growing electrification backlog (now $41B) position it as a critical supplier to the AI data center boom. The strong free cash flow and raised guidance signal sustained investment in grid and power infrastructure, which is foundational to AI compute growth.
GE Vernova delivered strong Q2 2026 results with orders of $24.2B, up 88% year-over-year, and a book-to-bill of over 2x. Revenue grew 12% to $11.1B, with Power up 14% and Electrification up 68% reported (29% organic), while Wind declined 11%. Adjusted EBITDA rose 61% to $1.2B, with margin expansion of 340 bps, driven by Power and Electrification. Free cash flow was $5.1B in the quarter, benefiting from $6.4B of working capital inflows from down payments. Gas Power signed 20 GW of orders and SRAs, bringing total gigawatts under contract to 116 GW, and Electrification booked $2.7B of data center orders, bringing H1 data center orders to over $5B.
Management raised full-year 2026 revenue guidance by $1B to $45.5B-$46.5B and free cash flow guidance to $11.5B-$12.5B (from $6.5B-$7.5B), while maintaining adjusted EBITDA margin guidance of 12%-14%. They expect to end 2026 with at least 125 GW of gas turbines under contract, with more than half of the 30 gigawatts of 2031 production slots reserved by year-end, and see a path to 30 GW of annual gas turbine output by 2030 using lean and incremental machinery within existing factories. Electrification revenue guidance was raised by $500M to $14.5B-$15B, with margins expected to expand modestly above Q2 levels in Q3. Wind remains a drag, with EBITDA losses of approximately $400M expected for 2026, but management sees improvement in the second half as higher-margin equipment ships. The tone was confident, emphasizing a multi-decade electricity investment super cycle and continued margin expansion driven by volume, price, and productivity.
“We now expect at least 125 gigawatts under contract by the end of the year. We had a strong first half and now have agreements signed into 2031.”
on Gas turbine demand
“In 2Q, we booked $2.7 billion of data center orders in Electrification, bringing total segment data center orders to over $5 billion in the first half of 2026, more than double full year 2025.”
on Data center demand
“We are in the early stages of this electricity investment super cycle, and we continue to see significant opportunity ahead.”
on Industry outlook
Can you talk about the 30 GW by 2030 capacity target, confirm major capacity adds are off the table, and update on Greenville?
Scott confirmed the ramp to 20 GW annualized starting in Q3, with 325 machines installed and ~400 by year-end. He said the 30 GW target will be achieved through lean, automation, and incremental machinery within existing factories, with supply chain capacity already secured. He noted that some capacity will be needed for future HA service outages.
What demand are you seeing outside North America to support capacity additions?
Scott cited strong pipelines in Taiwan (10+ GW of HAs on contract), Saudi, Mexico, and Southeast Asia, with Qatar signed in the quarter. He noted discussions in Southeast Asia are increasing, though EPC capability is a constraint.
How should we think about the data center entitlement per gigawatt, given $5B of orders in H1 and new products like SST and MV-UPS?
Scott said the current scope per gigawatt is ~$300M, but with MV-UPS and SST, entitlement could be 2-3x that. He expects MV-UPS orders potentially in H2 2026, but SST orders more likely in 2027, with R&D shared with hyperscalers.