AI Surge Fuels GE Vernova to Fresh Highs on Backlog and 2026 Outlook

GE Vernova has benefited directly from the growing electricity needs of modern AI data centers, with the stock trading near its record levels at roughly $820. A strong industry backdrop supports the rally, as the company’s size and position in the electrification value chain become more relevant in a climate of expanding demand for power infrastructure.

• Backlog: $150 billion (as of end-2025).
• 2026 Revenue Guidance: $44 to $45 billion.
• Free Cash Flow: $5.0 to $5.5 billion.
• Capacity Reservations: Gas turbines bookings up to 83 GW.

The electricity requirements of AI data centers are shaping the growth trajectory for the broader energy infrastructure space. Market dynamics recently highlighted by peers include:

• Siemens lifting its 2026 profit outlook, pointing to data-center-related demand that produced revenue growth of more than 30% above expectations.
• Vertiv reporting in Q4 2025 an unusually high book-to-bill ratio, signaling stronger demand relative to revenue in the period.

Investors view these industry signals as a direct tailwind for GE Vernova. The company benefits from a broad installed base, and customers are increasingly willing to lock in future capacity in advance through Slot Reservation Agreements (SRAs). This momentum could help GE Vernova extend its leadership in power generation technology.

Strong Backlog and Full Order Books

The company’s financials reinforce the growth narrative. The total backlog stood at $150 billion at year-end. In Gas Power, the segment saw notable momentum, with capacity reservations for gas turbines rising year over year from 62 GW to 83 GW.

Should investors sell immediately? Or is it worth buying Ge Vernova?

In response to the favorable market conditions, management raised the financial targets for 2026. The revenue forecast now sits at $44 to $45 billion, and the company projects free cash flow of up to $5.5 billion. This profile emphasizes GE Vernova’s ability to fund ongoing operations while returning capital to shareholders.

Service Focus and Grid Expansion

Beyond new-build activity, GE Vernova is sharpening its emphasis on higher-margin service businesses. The modernization of its Houston training center, completed recently, equips technicians to service the latest gas-turbine models and helps sustain a robust, efficient global service network with recurring revenue.

The strategic expansion in grids is underscored by the full acquisition of Prolec GE for about $5.28 billion, strengthening GE Vernova’s foothold in the transmission and distribution market. This acquisition ensures coverage across the entire value chain—from generation to distribution. Even as the stock has reached a fresh all-time high and experienced some profit-taking, the operating base remains solid, underpinned by strong order books and strategic purchases. Achieving the revised 2026 revenue targets has become the central objective for the forthcoming quarters.