GE Vernova (GEV), a power equipment maker that was spun off from General Electric last year, reported solid results for the second quarter of 2025 and raised its full-year guidance. GEV stock rallied about 15% on Wednesday, as investors cheered the company’s robust outlook at a time when the power industry is facing tariffs and shifting policies under the Trump administration, which have raised costs, disrupted supply chains, and triggered concerns about the future of offshore wind projects.
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GE Vernova Beats Wall Street’s Expectations
GE Vernova’s Q2 2025 adjusted earnings per share (EPS) of $1.73 crushed Wall Street’s estimate of $1.51. Furthermore, revenue increased 11% year-over-year to $9.11 billion, ahead of the analysts’ consensus estimate of $8.81 billion. GEV attributed its strong Q2 results to the performance of its power and electrification businesses.
Additionally, GE Vernova now expects full-year revenue to trend toward the higher end of its guidance in the range of $36 billion to $37 billion. The company also raised its free cash flow outlook to a range of $3.0 billion to $3.5 billion, up from the prior guidance of $2.0 billion to $2.5 billion.
The strong demand for GE Vernova’s offerings is driven by the spike in power consumption due to rapid expansions in artificial intelligence (AI) and cryptocurrency data centers as well as higher demand from households and businesses.
Here’s How Analysts Reacted to GEV’s Q2 Results
Following the Q2 print, Bank of America Securities analyst Andrew Obin increased the price target for GE Vernova stock to $725 from $620 and reiterated a Buy rating. Obin highlighted management’s commentary about pricing in Gas Power services starting to improve as the U.S. electricity market tightens. While the pace of pricing in electrification is expected to decelerate, the 5-star analyst forecasts continued volume growth and improving variable cost leverage.
Obin’s revised price target is based on a valuation multiple of 26x of his 2027 adjusted EBITDA estimate, up from the prior multiple of 22x. He noted that the new valuation multiple reflects a premium to the 14x peer average based on 2026 estimates. Obin contends that GEV stock warrants a premium multiple, given its superior earnings growth and margin trajectory.
Meanwhile, Wolfe Research analyst Nigel Coe reiterated a Hold rating on GEV stock. The 4-star analyst highlighted that GE Vernova is leading the energy transition and is a top-3 player in Gas, Onshore Wind, and transmission and distribution (T&D) equipment and services. Coe stated that these industries are key to the energy transition and are expected to drive above-average sales growth through to the end of the decade, supported by recent backlog build.
Despite these positives, Coe remains sidelined on GEV stock, as he believes that valuation has become increasingly challenging to support on both a relative and absolute basis.
Is GEV a Good Stock to Own?
Overall, Wall Street has a Strong Buy consensus rating on GE Vernova stock based on 13 Buys and three Holds. The average GEV stock price target of $588.13 indicates a 6.5% downside risk from current levels. GEV stock has rallied by an impressive 91.2% year-to-date.
Note that more analysts could update their ratings and price targets in reaction to the results.
