GE Vernova Lifts Free Cash Flow Guidance 33% to $7B, Forecasts $45B Revenue
PWR•Management raised its full-year free cash flow guidance by 33% to $7.00 billion, and boosted 2026 revenue to $45.00 billion with an adjusted EBITDA margin outlook of 13.0%. Despite a $163 billion backlog, shares are down 1.5% as investors question execution and wind segment losses near $400 million.
1. Significant Guidance Boost
On April 22, management raised full-year free cash flow guidance by 33% to $7.00 billion, boosted 2026 revenue forecast to $45.00 billion and set an adjusted EBITDA margin target of 13.0%, reflecting confidence in accelerating demand.
2. Execution and Wind Segment Risks
Investors remain cautious about execution risks as the wind segment is projected to incur approximately $400 million in EBITDA losses in 2026, raising concerns over turning guidance into actual profits.
3. Backlog and Demand Drivers
The company sits on a $163 billion order backlog, fueled by strong data center demand for power solutions, underpinning its outlook for higher revenue and cash flow over the coming years.
4. Stock Performance and Volatility
Despite a 127% gain over the past twelve months, shares are down about 1.5% since the guidance update, and options traders are pricing in roughly 50% implied volatility ahead of the next major catalyst.
