10-Q · July 22, 2026
GE Vernova delivered strong Q2 growth, with revenue up 22% to $11.104 billion, gross margin up 1.0 point to 21.3%, operating margin up 1.7 points to 5.9%, and EPS up $0.61 to $2.47 year over year. Power and…
Earnings analysis · 10-Q
GEV earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
GE Vernova delivered a strong Q3, with revenue up 27% year over year to $12,642 million, gross margin expanding to 24.6%, operating margin reaching approximately 11.0%, and diluted EPS rising to $4.81. Power and…
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GE Vernova delivered a strong Q3, with revenue up 27% year over year to $12,642 million, gross margin expanding to 24.6%, operating margin reaching approximately 11.0%, and diluted EPS rising to $4.81. Power and Electrification drove the improvement, while Wind returned to positive quarterly EBITDA but remained materially loss-making for the first nine months. Cash generation and backlog were exceptional, although the approximately €8.0 billion Trench acquisition, Prolec integration, tariff exposure, and ongoing Wind execution remain important risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.81
What stood out
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Revenue accelerated sharply
Q3 revenue was $12,642 million, up $2,673 million, or 27%, from $9,969 million in Q3 2025 and up approximately 14% from $11.1 billion in Q2 2026. Organic revenue increased 18% year over year to $11,676 million.
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Margins expanded materially
Gross margin expanded to 24.6% from 19.0% year over year and 21.3% in Q2 2026. Operating income rose to $1,394 million from $366 million year over year, taking operating margin to approximately 11.0% from 3.7%.
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EPS more than doubled year over year
Diluted EPS was $4.81 versus $1.64 in Q3 2025 and $2.47 in Q2 2026. Net income margin increased to 10.2% from 4.5% year over year.
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Power and Electrification led growth
Power revenue increased 25% to $6,067 million and EBITDA increased 99% to $1,297 million, driven primarily by higher Gas Power volume and favorable pricing. Electrification revenue increased 51% to $3,862 million, including the Prolec GE acquisition, while EBITDA increased 91% to $739 million.
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Cash generation surged
Nine-month operating cash flow was $16,737 million versus $2,508 million in the prior-year period, and free cash flow was $15,307 million versus $1,902 million. The increase was supported by a $19,511 million increase in contract liabilities and deferred income, primarily from customer down payments.
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Backlog reached record levels
Total RPO reached $196,721 million, up 31% from $150,238 million at December 31, 2025 and up 45% from $135,269 million at September 30, 2025. Power RPO increased 38% year to date to $130,854 million.
What to watch
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Wind remains loss-making
Wind remains weaker on a year-to-date basis: revenue declined 8% to $6,200 million and segment EBITDA declined 57% to $(585) million, with margin worsening to negative 9.4% from negative 5.5%. Wind RPO also declined 8% from year-end to $19,952 million.
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Large Trench acquisition execution risk
GE Vernova agreed to acquire Trench Group for approximately €8.0 billion, expected to close in late 2027 and funded equally with cash and debt. The agreement remains subject to regulatory approvals and includes a customary termination fee if approvals are not obtained within specified timeframes.
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Substantial capital commitments
The company had $16,764 million of cash, cash equivalents, and restricted cash at September 30, 2026, but also incurred $5,296 million of treasury-stock purchases in the first nine months and expects to pay approximately $375 million for retiree benefit obligations within the next 12 months, including $353 million already paid in Q3.
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Tariff exposure remains uncertain
Global tariffs are estimated to cost less than $100 million in 2026 after contractual protections and mitigation, but management states actual impacts could differ significantly depending on tariff scope, duration, countermeasures, and contractual implications.
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Prolec integration and valuation risk
Prolec GE contributed $944 million of Q3 revenue but $(5) million of pretax income, while the acquisition added $5,222 million of goodwill and $4,172 million of identifiable intangible assets. Purchase accounting remains preliminary and may change through the first quarter of 2027.
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Working capital absorption increased
Inventories increased to $13,045 million from $10,429 million at December 31, 2025, while current receivables increased to $11,587 million from $9,803 million. Management reported nine-month cash outflows of $2,052 million from inventory and $1,667 million from current receivables.
Management's outlook
The 10-Q does not provide new or revised numeric revenue, EPS, or EBITDA guidance. Management states that the approximately €8.0 billion Trench acquisition is expected to close in late 2027 and is currently expected to be funded equally with cash and debt.
Earlier filings 4
10-Q · April 22, 2026
GE Vernova reported strong Q1 2026 results driven by acquisition-related gains and solid operating cash generation. Revenue was $9,339 million (up $1,307 million vs. $8,032 million in Q1 2025) and GAAP diluted EPS rose…
10-K · January 29, 2026
GE Vernova positions itself as a purpose-built leader in electric power, focused on electrification and decarbonization with a broad portfolio across Power, Wind, and Electrification. The company reports robust backlog…
10-K · February 6, 2025
GE Vernova positions itself as a purpose-built leader in the energy transition with a large backlog and installed base (RPO of approximately $73.4 billion and an installed base that generates ~25% of the world’s…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.