GEV · Q2 2026 Earnings

Bullish

GE Vernova

Reported July 22, 2026

30-second summary

Q2 revenue grew 22% YoY to $11.1B, beating consensus $10.73B by 3.5%. The real headline is the FY26 free cash flow guide leaping to $11.5–12.5B from $6.5–7.5B — a $4.5B midpoint raise (~60%) driven by $5.1B of Q2 FCF alone, alongside revenue guide raised $1B at midpoint and gas equipment backlog stepping to 116 GW (from 100 GW at Q1). The margin guide (12–14% adj. EBITDA) was reaffirmed, not raised, which is the one restraint on an otherwise across-the-board upward revision.

Headline numbers

EPS

Q2 FY2026

$2.47

-22.1% vs est.

Revenue

Q2 FY2026

$11.10B

+22.0% YoY

+3.5% vs est.

Free cash flow

Q2 FY2026

$5.11B

Key financials

Q2 FY2026

Metric	Q2 FY2026	YoY	Q1 FY2026	QoQ
Revenue	$11.10B	+22.0%	$9.34B	+18.9%
EPS	$2.47	—	$17.44	-85.8%
Free cash flow	$5.11B	—	$4.79B	+6.6%

Guidance

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Power segment revenue growth	Q2 FY2026	15% to 17% year-over-year	14%	In-line with low end of guide	Beat
Electrification segment revenue	Q2 FY2026	$3.3 to $3.5 billion	$3.637 billion	+$0.14 billion above high end of guide	Beat
Wind segment revenue decline	Q2 FY2026	mid-teens decline year-over-year	-10%	In-line with mid-teens guidance (lower end)	Met

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY 2026	$44.5-$45.5 billion	$45.5-$46.5 billion	+$1.0 billion at midpoint	Raised
Free cash flow	FY 2026	$6.5-$7.5 billion	$11.5-$12.5 billion	+$4.5 billion at midpoint	Raised
Power organic revenue growth	FY 2026	16%-18%	18%-20%	+2 percentage points at both ends	Raised
Electrification revenue	FY 2026	$14.0-$14.5 billion	$14.5-$15.0 billion	+$0.5 billion at midpoint	Raised

Reaffirmed unchanged this quarter: Adjusted EBITDA margin (12%-14%), Power segment EBITDA margin (17%-19%), Electrification segment EBITDA margin (18%-20%), Wind organic revenue (Down low-double digits), Wind segment EBITDA losses (Approximately $400 million)

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	YoY
Power	$5.477B	+14.0%
Electrification	$3.637B	+68.0%
Wind	$2.026B	-10.0%

Other KPIs

Q2 FY2026

Segment	Q2 FY2026
Orders	$24.2B
Backlog	$176B
Gas Power Equipment Backlog	116 GW
Adjusted EBITDA Margin	11.3%
Adjusted Organic EBITDA Margin	11.2%
Net Income Margin	5.8%
Data Center Orders YTD	$5.0B
Free Cash Flow	$5.1B

Management tone

Transcript unavailable this quarter; tone analysis paused. Written commentary from the press release is limited, but the headline framing — "substantial value creation ahead" alongside the FCF guide doubling — signals management is now willing to lead with cash generation rather than revenue growth as the primary narrative.

Answers to last quarter's watch list

Q2 FY2026 Power segment EBITDA margin landing in the 17–18% guided range — Resolved positively. Power segment EBITDA margin was 18.8% (+240 bps, +320 bps organically), landing above the 17–18% Q2 guide range. FY Power segment EBITDA margin guide was reaffirmed at 17–19%.

Resolved positively

Whether gas backlog progresses materially past 100 GW and whether the "at least 110 GW" year-end signpost gets raised — Resolved positively. Gas equipment backlog reached 116 GW at Q2, up 16 GW in the quarter, and management raised the year-end signpost to "at least 125 GW" — a 15 GW increase to the prior floor. Framework agreement closures were not addressed in the press release; that piece remains open.

Resolved positively

Free cash flow conversion through H1 and whether FY guide gets raised at Q2 — Resolved positively. Q2 FCF of $5.11B brings H1 FCF to $9.9B. FY FCF guide was raised to $11.5–12.5B from $6.5–7.5B — a $4.5B midpoint raise (~60%).

Resolved positively

Tariff impact quantification — Not resolved. The press release did not update the $250–350M 2026 tariff impact estimate or quantify Section 232 exposure on Prolec.

Continue monitoring

Electrification segment EBITDA margin holding above 18% — Resolved positively. Q2 Electrification segment EBITDA margin was 18.4% (+390 bps, +700 bps organically), above the 18% threshold. FY guide reaffirmed at 18–20%.

Resolved positively

Whether Q2 Wind EBITDA loss lands at the low end ($200M) or high end ($300M) of the range — Resolved. Q2 Wind segment EBITDA loss of $275M landed near the high end of the $200–300M guide range. FY Wind EBITDA loss guide reaffirmed at ~$400M. Wind revenue declined -10% YoY, better than the mid-teens decline guide. Status: Resolved.

What to watch into next quarter

Whether the FY adj. EBITDA margin guide of 12–14% gets raised at Q3 — this is the one line management held flat while raising revenue and FCF. Q2 printed 11.3%; H2 needs to run above ~13.5% to hit the midpoint. A Q3 print at or above 13% would set up an upward FY margin revision.

Q3 Power segment revenue growth — Q2 came in at +14% vs. a +15–17% guide. The FY Power organic guide was raised to 18–20% (from 16–18%), which mathematically requires H2 to accelerate meaningfully. Watch whether Q3 prints ≥17% to validate the FY raise.

Gas equipment backlog progression toward the 125 GW year-end signpost — 116 GW at Q2 implies only 9 GW additional needed in H2 to clear the floor. Watch whether the signpost gets raised again to 130+ GW.

First disclosed framework agreement closure — three quarters into the "30–35 in discussion" pipeline with none closed. Sustained absence into Q3 would begin to look like structural friction rather than iteration.

FCF guide behavior at Q3 — H1 FCF of $9.9B is already 86% of the new $11.5B floor with two quarters remaining — a further raise looks likely.

Any breakout of Q2/Q3 segment EBITDA margins for Power and Electrification — Q2 disclosed Power at 18.8% and Electrification at 18.4%, both above the FY range midpoints. Next quarter's data should clarify whether the FY 17–19% Power and 18–20% Electrification ranges have room to raise.

Sources

GE Vernova Q2 FY2026 Press Release (SEC EDGAR, July 22, 2026) — https://www.sec.gov/Archives/edgar/data/1996810/000199681026000147/gevpressrelease2q26.htm
GE Vernova Q1 FY2026 Tapebrief (April 22, 2026) — prior quarter context.
GE Vernova Q4 FY2025 Tapebrief (January 28, 2026) — multi-quarter trajectory context.

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