GE Vernova Q2 2026 revenue rose 22% to $11.1B and diluted EPS to $2.47 as gas turbine orders more than doubled to 12.1 GW, backlog reached $176B and free cash flow hit $5.1B, while Wind losses widened.
Revenue
$11.1B
+21.9% YoY
Net income
$668M
+30.0% YoY
Diluted EPS
$2.47
+32.8% YoY
Operating margin
5.9%
Overview
GE Vernova makes and services the equipment that generates and moves electricity: gas turbines and nuclear/hydro equipment (Power), grid gear such as transformers and switchgear (Electrification), and wind turbines (Wind). In the second quarter of 2026 (April–June), revenue rose 22% to $11.1 billion and net income attributable to GE Vernova rose 30% to $668 million, or $2.47 per diluted share (up from $1.86). Power and Electrification drove the gains. Wind lost more money than a year ago.
Two things matter more than the quarter's profit:
The backlog grew much faster than sales. Remaining performance obligations (RPO) reached $176.3 billion, up from $128.7 billion a year earlier (+37%). RPO is the value of signed, firm orders and service contracts not yet delivered. Orders in the quarter were $24.2 billion, up 88% organically (excluding acquisitions, disposals and currency moves), according to the company's earnings release. That is more than double the quarter's revenue.
Customers are paying cash up front. Free cash flow was $5.1 billion in the quarter, versus $194 million a year earlier. Free cash flow is operating cash minus spending on plants and equipment. The 10-Q attributes the first-half cash surge mainly to "down payments on orders and slot reservation agreements at Power, and down payments at Electrification."
Comparisons with last year are affected by the Prolec GE acquisition. On February 2, 2026, GE Vernova bought the remaining 50% of this North American transformer maker from Xignux for about $5.3 billion in cash. Prolec GE added $859 million of revenue in Q2, all inside Electrification.
Key metrics
Metric
Q2 2026
Q2 2025
YoY Change
Revenue
$11,104M
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Source: Form 10-Q for the quarter ended June 30, 2026. Orders, quarterly free cash flow and quarterly operating cash flow come from the Q2 2026 earnings release (8-K Exhibit 99.1, July 22, 2026). The 10-Q reports free cash flow only on a six-month basis.
The GAAP operating margin of 5.9% is much lower than the 11.3% adjusted EBITDA margin. The main reason is depreciation and amortization, which adjusted EBITDA leaves out. Amortization of intangible assets was $236 million in Q2, compared with $60 million a year earlier. Most of that increase comes from intangible assets recorded when Prolec GE was acquired. Intangible assets are non-physical assets such as customer relationships and trademarks, and their value is written down over time. So the acquisition raises reported revenue while also adding a non-cash cost that reduces GAAP profit.
Year to date: the headline profit is mostly a one-off gain
For the first six months, net income attributable to GE Vernova was $5,413 million ($19.96 per diluted share), compared with $768 million ($2.77) a year earlier. Most of that jump is not operating profit. Once GE Vernova owned all of Prolec GE, it had to revalue its old 50% stake at fair value. That produced a $4.0 billion pre-tax gain in the first quarter, and a separate $330 million pre-tax gain came from selling its Proficy manufacturing-software business. The gain on Prolec GE was mostly non-taxable, so the first-half tax rate was only 10.5%. Underlying results were still better: first-half operating income was $833 million versus $421 million, and first-half revenue was $20.4 billion, up 19%.
Segment performance
Segment
Q2 2026 revenue
Q2 2025 revenue
Change
Q2 2026 segment EBITDA margin
Q2 2025 segment EBITDA margin
Power
$5,477M
$4,785M
+14%
18.8%
16.4%
Electrification
$3,637M
$2,162M
+68% (+29% organic)
18.4%
14.5%
Wind
$2,026M
$2,245M
-10%
-13.6%
-7.3%
Segment EBITDA is the company's own measure of each unit's operating profit before depreciation and amortization.
Power: record gas turbine bookings, fewer large units shipped
Power segment EBITDA rose 31% to $1,031 million. The 10-Q attributes the increase "primarily at Gas Power due to higher volume and favorable pricing, partially offset by the impact of inflation." Gas Power revenue was $4.43 billion (+13%) and Nuclear Power revenue was $817 million (+26%).
What was ordered and what was shipped moved in opposite directions:
Gas turbines (units)
Q2 2026
Q2 2025
H1 2026
H1 2025
Orders – total
113
47
150
85
– Heavy-duty (incl. HA)
52
20
80
49
– Aeroderivatives
61
27
70
36
Orders – gigawatts
12.1 GW
5.1 GW
20.1 GW
12.2 GW
Shipped – heavy-duty
13
18
28
30
Shipped – aeroderivatives
16
3
26
10
Shipped – gigawatts
3.3 GW
5.2 GW
7.5 GW
8.2 GW
Shipped capacity fell from 5.2 GW to 3.3 GW, yet Power equipment revenue still rose 31% to $1,965 million. The 10-Q attributes that to "higher Aeroderivative unit deliveries and favorable pricing." Aeroderivatives are smaller, jet-engine-based turbines that can be installed quickly. The mix of what shipped was different from last year's, and higher prices did part of the work. Heavy-duty volume alone did not drive the growth. The Power equipment backlog was $39.3 billion, up from $16.1 billion a year earlier and $24.7 billion at the end of 2025.
Slot reservations. A slot reservation agreement is a paid deposit that holds a production slot for a future turbine before the firm order is placed. According to the earnings release, GE Vernova signed 20 GW of new gas equipment contracts in Q2: 18 GW of slot reservations and 2 GW of direct orders. It also converted 10 GW of earlier reservations into firm orders. Gas equipment backlog rose from 44 GW to 53 GW, and slot reservations rose from 56 GW to 63 GW. Combined, that is 116 GW, up from 100 GW at the end of Q1. The company now expects at least 125 GW by year-end 2026. The release says the company is on track to reach 20 GW of annual gas turbine output in Q3 2026, 24 GW in 2028, and is working toward 30 GW in 2030.
Data centers. The 10-Q does not attribute gas turbine demand to data centers or AI in its own wording. The only data-center figure in the Q2 materials comes from the CEO's quote in the earnings release, and it refers to Electrification: data center orders there have reached "over $5 billion year-to-date, more than double our 2025 total." Any link between the gas turbine order surge and AI power demand is an inference from outside the filing. The filing itself only describes it as volume and pricing.
Electrification: organic growth plus Prolec GE
Revenue was $3.64 billion. Power Transmission (switchgear and transformers, now including Prolec GE) was $1,877 million versus $759 million. Excluding the acquisition and currency, segment revenue grew 29%, which the 10-Q attributes to higher switchgear and transformer volumes and to alternating-current substation and high-voltage direct-current (HVDC) projects. Segment EBITDA more than doubled to $671 million, and the margin reached 18.4%. The 10-Q credits "volume, productivity, and favorable price at Power Transmission and Power Conversion & Storage."
Prolec GE contributed revenue but reduced reported profit in its first months. It posted a $57 million pre-tax loss in Q2 after inventory step-up amortization, intangible amortization and integration costs. The inventory step-up is a one-time accounting charge that arises because acquired inventory is booked at market value, so there is little profit left when it is sold. That charge was $35 million in the quarter. Earnings releases in the next few quarters will show whether Prolec GE's contribution improves once these one-time charges are finished. Electrification orders were $6.3 billion (+66% organic), about 1.7 times the quarter's revenue, and the segment's equipment backlog reached $40.6 billion.
Wind: losses widened in both onshore and offshore
Wind revenue fell 10% to $2.03 billion, and the segment EBITDA loss widened to $(275) million from $(165) million. Onshore Wind revenue fell to $1.72 billion from $2.02 billion. According to the earnings release, fewer turbines were delivered because orders were weak in the first half of 2025. Offshore Wind revenue rose to $305 million on more installations, but the 10-Q cites "higher project costs" there. For the six months, it says losses came from "higher contract losses" at Offshore Wind and from tariffs at Onshore Wind. At Vineyard Wind, all turbines were installed in Q1 after the US offshore-lease pause was lifted on January 27. The project is now being commissioned, and GE Vernova says it is "working with our customer to resolve outstanding claims and counterclaims." The outcome of those claims is not quantified. Wind orders fell 39% to $1.25 billion, and Wind backlog shrank to $20.4 billion from $22.5 billion.
Cash, buybacks and dividend
Operating cash flow was $5.49 billion in Q2 (per the release) and $10.68 billion for the first half, against $1.53 billion a year earlier. First-half free cash flow was $9.9 billion. Most of it came from customer prepayments: contract liabilities, meaning cash received before the work is delivered, contributed a $13.7 billion inflow. That cash will be used up as the turbines and grid equipment are built. This is a working-capital benefit, not recurring profit, and should not be read as the business's ongoing earning power.
Buybacks: 2.5 million shares repurchased for $2.3 billion in Q2, and 4.3 million shares for $3.6 billion in the first half (an average of about $854 per share, per the release). Diluted share count fell to 270 million from 276 million.
Dividend: $0.50 per share per quarter.
Balance sheet: $13.1 billion in cash, cash equivalents and restricted cash at June 30. The company issued $2.6 billion of senior notes in February, partly to finance Prolec GE.
Other: a voluntary $0.5 billion pension contribution, sale of the remaining China XD Electric stake (about $0.6 billion pre-tax proceeds, per the release), and a tariff cost estimate of $100–200 million for 2026 after mitigation.
Takeaway: The Q2 profit growth matters less than the order book. Power booked 12.1 GW of gas turbine orders while shipping only 3.3 GW, and customers are paying deposits to reserve future production slots. Roughly 116 GW of gas equipment is under contract or reservation, compared with the 20 GW a year of output the release says the company is on track to reach in Q3 2026. That is several years of factory output already spoken for, which supports the favorable pricing the 10-Q cites as a driver of both Power and Electrification results. The main risk is Wind, which lost $657 million at the segment level in the first half, with Vineyard Wind claims still unresolved.
Guidance and outlook
According to the earnings release, management raised its full-year 2026 guidance:
2026 guidance
New
Previous
Revenue
$45.5–46.5B
$44.5–45.5B
Free cash flow
$11.5–12.5B
$6.5–7.5B
Adjusted EBITDA margin
12–14%
12–14% (unchanged)
Power organic revenue growth
18–20%
16–18%
Power segment EBITDA margin
17–19%
—
Electrification revenue (incl. ~$3.1B Prolec GE)
$14.5–15.0B
$14.0–14.5B
Electrification segment EBITDA margin
18–20%
—
Wind
Organic revenue down low-double digits; ~$400M segment EBITDA loss
—
Our read: The free cash flow guidance rose by $5 billion, far more than revenue guidance, which rose by $1 billion. That shows how much the year's cash depends on customer deposits. First-half free cash flow of $9.9 billion is already more than 80% of the new midpoint. Adjusted EBITDA margin was 10.5% in the first half, below the 12–14% full-year range, so the second half has to be stronger. That depends on more heavy-duty turbine deliveries as capacity grows and on Electrification holding margins above 18%. Guidance for Wind implies about $400 million of losses for the full year, but the segment lost $657 million in the first half. If that guidance holds, Wind would need to swing to a small profit in the second half. Given the losses so far, that is the least certain part of the outlook.