GE Vernova gears up for Q2 print with 70% EPS growth expected

GE Vernova is expected to report Q2 revenue of $10.77 billion and EPS of $3.17 before the opening bell Wednesday, analysts estimate.

"The upward revision of 1.4% in the consensus EPS estimate over the past 30 days reflects growing confidence in GE Vernova's execution," Morgan Stanley analysts, who rate the stock Overweight and raised their price target to $761 from $752 on July 17, said.

Power revenue is forecast at $5.54 billion, up 16.5% year over year, with equipment sales rising 34.1% to $1.96 billion. Wind revenue is projected at $1.90 billion, down 15.4%, as equipment sales decline 17.6% to $1.47 billion. Electrification revenue is expected to surge 56.8% to $3.45 billion, driven by grid modernization and data center demand.

Total equipment sales are seen at $6.13 billion, up 25.2%, while services revenue is forecast at $4.64 billion, up 9.9%. The EPS estimate of $3.17 represents a 70.4% increase from the year-ago quarter, reflecting margin expansion as higher-margin services and Electrification revenue grows as a share of the mix.

Within Power, the 34.1% equipment growth signals strong demand for gas turbines and power generation equipment, while the 10.2% services growth reflects the recurring revenue base from the installed fleet. The Electrification segment, which includes grid solutions and software, has become the primary growth driver as utilities invest in grid hardening and data center operators seek reliable power connections.

The report comes as GE Vernova shares have gained 30% year to date, outpacing the S&P 500's 9.7% return. The stock closed at $660.45 on Monday, giving it a market cap of $91.1 billion, and trades at 22 times forward earnings. Rival Siemens Energy trades at 28 times forward earnings, highlighting the valuation discount. Analyst price targets range from $520 to $901, with a consensus of $754.86.

A beat across all three segments could push shares toward the consensus target, implying 14% upside from current levels. Investors will focus on management's full-year guidance update and commentary on Electrification backlog trends during the earnings call Wednesday morning.

This article is for informational purposes only and does not constitute investment advice.