GE Vernova is already up considerably in 2026 after nearly doubling in value last year.
The company’s Q4 report confirmed investor optimism, as the company’s orders and backlog soared.
Despite trading at a high valuation multiple, the company’s impressive demand and cash flow projections are hard to ignore.
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Power and electrification company GE Vernova (NYSE: GEV) was a standout performer in 2025, delivering a total return of approximately 99%.
Shares are already up by almost 10% in 2026, buoyed by the company’s latest earnings report.
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GE Vernova continues to see explosive demand in its Power and Electrification segments, leading the company’s backlog to historic levels.
However, with shares trading at a significant premium to the overall market and the industrials sector, the company’s results warrant close examination to assess its outlook.
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GE Vernova released its Q4 2025 earnings before the market opened on Jan. 28. It posted sales of just under $11 billion, or growth of 3.8%. This figure easily beat estimates of $10.2 billion, implying a revenue decline of 3.4%.
The company also posted a massive beat on earnings per share (EPS), with the figure coming in at $13.39. This is compared to estimates of $2.99. However, it is important to note that this was largely due to a $2.9 billion tax benefit the company received, boosting its net income. Absent this benefit, the company’s EPS would have been near or below estimates.
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This was a one-time, non-cash benefit and is not overly material to the company’s outlook. This is partly why, despite the huge EPS beat, GEV shares rose only 2.7% on the day of the release.
GEV’s underlying metrics also impressed. Orders continued to grow at a very brisk pace, rising to $22.2 billion. This was a 43% increase versus $14.6 billion just one quarter ago. The company also saw its backlog rise by $15 billion to $150 billion.
The Power and Electrification segments largely drove this, with orders rising 50% and 45%, respectively, compared to Q3 2025. The backlogs in these segments also rose 12% and 15% during the same period. The moral of the story is that GE Vernova is receiving orders far faster than it can fill them. The company’s approximately 2x book-to-bill ratio may be the best indicator of this dynamic. During the quarter, the value of products or services customers agreed to receive in the future was double GEV’s revenue. This provides strong visibility into the company’s ability to continue growing sales.
