GE Vernova (NYSE: GEV) has delivered a 60.1% return over the twelve months to October 8, 2026, far ahead of the 16.3% gain posted by the S&P 500 over the same period.
The company’s outperformance has been driven by relentless demand for gas turbines and power equipment, particularly from data center customers placing steady orders throughout the year.
When management reported second quarter 2026 results on July 22, GE Vernova’s backlog of signed but undelivered work stood at $176 billion, a figure that rose $13 billion from the prior quarter alone.
Management stated the company is on track to reach $200 billion in backlog by 2027, signaling that new orders continue to arrive at a pace that outstrips delivery.
New orders are also carrying higher price tags, with management noting that gas power equipment orders in the first half of 2026 were priced more than 20% above those recorded in the fourth quarter of 2025.
Revenue over the last twelve months grew 13.0%, accelerating from 8.5% growth the year before, and management now expects full-year 2026 revenue of $45.5 billion to $46.5 billion, representing $1 billion more than prior guidance.
Operating margins have climbed sharply as well, moving from 0.4% two years ago and 1.8% a year ago to 4.4% over the last twelve months, reflecting improving efficiency as the company scales delivery.
Customers pay deposits when placing orders, allowing GE Vernova to collect cash ahead of booking sales, and management raised its 2026 free cash flow guidance to a range of $11.5 billion to $12.5 billion, up from a prior range of $6.5 billion to $7.5 billion.
Despite the strong momentum, GE Vernova’s 4.4% operating margin remains well below the 18.5% average for S&P 500 companies, yet investors are paying 6.5 times sales for the stock against a multiple of 3.0 for the broader index.
The valuation gap implies that the market expects GE Vernova to deliver its enormous backlog at significantly better margins than it currently earns, making execution the central risk for shareholders going forward.
Wind energy remains a significant drag on the business, with wind orders falling 40% in the second quarter of 2026 and the division posting a loss of $275 million on an EBITDA basis during that quarter.
Management acknowledged it remains difficult to say when U.S. wind orders will recover, adding uncertainty to a segment that has yet to find the pricing and policy tailwinds needed to match the gas business.
The company guided Wind’s EBITDA to approximately break-even for the third quarter of 2026, and if achieved, that would represent a meaningful narrowing of losses from the $275 million recorded in the second quarter.
GEV shares are up 54.0% year-to-date through early October 2026, comfortably outpacing the S&P 500’s 14.8% gain and the Energy Select Sector’s 9.7% advance over the same stretch.
