Schwab Network on $GEV (Oct 28, 2026)
GEV beat earnings and revenue, orders rose 96% to $29.3B and it raised full-year revenue and EBITDA guidance; shares are slightly lower year-to-date and under pressure, which may reflect its $9B acquisition and makes holding difficult, though demand clarity is strong while expectations rise.
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I wanted to take a look at GE Vernova, Diane. You are watching this name that is making moves after his quarterly report. Yes, GE Vernova has exceeded expectations in terms of earnings and revenue, but it will take a lot of investors to continue holding this stock given its performance.
When you think about it on an annual basis or since the beginning of the year, we find that stocks are slightly lower now. They have also raised their expectations, but they are making a $9 billion acquisition, and that may explain some of the pressure we are seeing on the stocks right now, where that pressure is accelerating by just over 2.5%.
Now, it's the orders that have stolen the spotlight here. It has almost doubled, jumping 96% to reach 29.3 billion.
In terms of revenue and profit, they exceeded expectations, with earnings of $4.81 per share. Wall Street expectations were for $4.01. Revenues reached $12.64 billion. That was better than expected. We were expecting approximately 12 billion.
In terms of orders, they came in at more than double the quarterly revenue. Customers are trying to secure the power supply. That's the story here. Management now expects backlogs to exceed 200 billion in the fourth quarter.
Therefore, they expect more power in the future.
This sign indicates that there is clarity in demand, and that demand remains strong. But this raises expectations for what's coming from here. As for their full-year revenue forecast, they have raised it to between $46.5 billion and $47.5 billion.
Earnings before interest, taxes, depreciation and amortization are expected to rise to around 6.6 billion. There are higher expectations for the profit margin before interest, taxes, depreciation, amortization and free cash flow.
And now, here's the nine billion dollar bet, the acquisition. They are buying the "Trench" collection. This adds high-voltage equipment. This equipment is used to connect and strengthen electrical networks.
So, they're betting that they'll need more energy and more equipment to run the AI sector,
What this channel has said about $GEV
Schwab Network has 3 calls on this stock; only the adjacent ones are shown.