GE Vernova shares fall as wind losses overshadow record backlog and data center demand

GE Vernova (NYSE:GEV) shares dropped about 6.4% on Wednesday morning after the power equipment maker's wind segment losses widened even as the company posted stronger-than-expected quarterly revenue and record orders.

The company's wind business, its long-standing trouble spot, reported revenue down 10% to $2.03 billion in the second quarter, with the segment's core loss widening to about $275 million on lower onshore equipment deliveries.

GE Vernova said it expects global tariffs to add $100 million to $200 million to costs in 2026.

Second-quarter revenue rose 22% year-over-year to $11.1 billion, topping analyst estimates of $10.7 billion.

Orders climbed 88% organically to $24.2 billion, pushing the company's backlog up $13 billion from the prior quarter to $176 billion.

Data center orders exceeded $5 billion so far this year, more than double the total for all of 2025.

Earnings per share came in at $2.47, up 33% from a year earlier but below the $3.01 analysts had expected. Adjusted EBITDA was $1.2 billion, for a margin of 11.3%.

By segment, Power revenue rose 14% organically to $5.5 billion, while Electrification revenue grew 29% organically to $3.6 billion.

For the full year, GE Vernova guided revenue of $45.5 billion to $46.5 billion, above the $45.45 billion analyst estimate, with free cash flow of $11.5 billion to $12.5 billion and an adjusted EBITDA margin of 12% to 14%. Power organic revenue growth is expected at 18% to 20%, while the wind segment is projected to post a roughly $400 million EBITDA loss for the year.

The company said gas equipment under contract is expected to reach at least 125 gigawatts by the end of 2026, with gas turbine output on track to hit 20 gigawatts in the third quarter of 2026, 24 gigawatts by 2028 and 30 gigawatts by 2030.