Analysts at Zacks Investment Research elevated GE Vernova to a Zacks Rank #2 (Buy) on growing confidence in the company’s earnings outlook. This upgrade reflects a broader consensus that order intake has accelerated across GE Vernova’s core businesses, with the book-to-bill ratio surpassing 1.1x in the most recent quarter. Zacks highlighted a sustained improvement in aftermarket services revenue, which now accounts for roughly 25% of total sales, bolstering margin stability even as raw material costs normalize.

In fiscal 2025, GE Vernova delivered $38.0 billion in revenue, up 8% year-over-year, while generating $3.2 billion of EBITDA and $3.7 billion of free cash flow. Free cash flow conversion reached 97% of net income, underscoring disciplined working-capital management. Management has already raised full-year 2026 guidance for both revenue and adjusted EBITDA, and announced a twofold increase in the annual dividend to $0.20 per share, reflecting confidence in sustained cash-flow generation.

GE Vernova’s Power and Electrification segments are driving profitable growth, with operating margins expanding by 150 basis points sequentially to 12.5% in the latest quarter. Order backlog stands at a record $65 billion, up 15% year-over-year. Conversely, the Wind segment is saddled with roughly $4 billion in annual operating losses and faces regulatory uncertainties in key European markets. While the stock has climbed approximately 123% since April, consensus analysts caution that the current valuation already embeds much of the near-term margin improvement, leaving limited upside absent further operational surprises.