GE Vernova Earnings Surpass Expectations, Shares Rise 15%

GE Vernova reported better-than-expected Q2 earnings, beating Ebitda and EPS estimates. The company raised its full-year financial guidance, leading to a 15% surge in shares. The power firm's strong performance has Wall Street optimistic, with shares closing at $629.03.

GE Vernova Inc. (GEV) has announced better-than-expected second-quarter (Q2) 2025 earnings, leading to a significant increase in its stock price. The energy transition company reported earnings per share (EPS) of $1.86, surpassing the consensus estimate of $1.69, and revenue of $9.11 billion, which exceeded Wall Street’s expectations of $8.78 billion [1].

CEO Scott Strazik commented on the company’s performance, stating, "We had a productive second quarter, positioning us well to accelerate growth and margin expansion." The company grew its backlog by more than $5 billion and increased Gas Power slot reservation agreements from 50 to 55 gigawatts [1].

In response to the strong earnings, GE Vernova raised its 2025 financial guidance. The company expects revenue to trend toward the higher end of its $36 billion to $37 billion range, up from the prior estimate of $36.952 billion. The adjusted EBITDA margin forecast was increased to 8% to 9%, up from high-single-digit estimates. Additionally, the free cash flow guidance was raised from $3.0 billion to $3.5 billion [1].

Following the earnings announcement, several analysts adjusted their price targets for GE Vernova. Baird analyst Ben Kallo raised the price target from $568 to $706, maintaining an Outperform rating. Barclays analyst Julian Mitchell raised the price target from $580 to $706, maintaining an Overweight rating. Wells Fargo analyst Michael Blum raised the price target from $474 to $697, also maintaining an Overweight rating. Susquehanna analyst Charles Minervino raised the price target from $662 to $736, maintaining a Positive rating. JP Morgan analyst Mark Strouse raised the price target from $620 to $715, maintaining an Overweight rating. Citigroup analyst Andrew Kaplowitz raised the price target from $544 to $670, maintaining a Neutral rating [1].

Morningstar has also revised its fair value estimate for GE Vernova stock to $390.00, reflecting higher long-term revenue and margin expectations within its power and electrification segments [2]. Despite the increase, Morningstar considers the stock overvalued following recent market movements.

GE Vernova’s strong Q2 performance has been driven by favorable order trends in its power and electrification segments, while wind activity remained subdued. The company’s backlog and slot reservation agreements increased sequentially to 55 gigawatts, with expectations to exceed 60 gigawatts by the end of 2025 [2].

In conclusion, GE Vernova’s robust Q2 earnings and increased financial guidance have led to a positive market response, with shares closing at $629.03 on Thursday. The company’s ability to raise its guidance and maintain strong order growth signals effective execution in the energy transition market. However, continued cost pressures in wind segments and reliance on traditional energy demand require close monitoring.

References:
[1] https://www.benzinga.com/analyst-stock-ratings/price-target/25/07/46608274/ge-vernova-analysts-increase-their-forecasts-after-better-than-expected-q2-earnings
[2] https://www.morningstar.com/stocks/ge-vernova-earnings-shares-rise-further-upside-long-term-financial-targets