GE Vernova (GEV) stock rallied about 12% on Wednesday morning, as of writing, after the power equipment maker announced strong revenue guidance for 2026 and increased its share buyback plan by $4 billion. The company, which is gaining from artificial intelligence (AI)-led demand for power, revealed its impressive outlook at its Investor Update event held yesterday.
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GE Vernova doubled its quarterly dividend to $0.50 per share, payable on February 2, 2026. The company said that the board approved an increase in share repurchase authorization to $10 billion, up from the prior limit of $6 billion. As of December 3, 2025, GE Vernova has repurchased $3.3 billion of shares.
GE Vernova Issues Bullish Outlook
GE Vernova stated that its 2025 revenue is trending toward the higher end of its guidance of $36 billion to $37 billion. Further, the company expects its 2026 top line to be in the range of $41 billion to $42 billion. It now projects 2028 revenue of $52 billion, reflecting a low-double-digit organic growth (compound annual growth rate compared to 2025). The company had previously expected its 2028 revenue to come in at $45 billion, reflecting a high-single-digit organic growth. GE Vernova expects adjusted EBITDA margin to be between 8% and 9% in 2025 and 11% to 13% in 2026. The company also raised its 2028 adjusted EBITDA margin outlook to 20% from 14%.
Impressively, GEV also increased its 2025 free cash flow (FCF) forecast to the range of $3.5 billion to $4 billion, up from the prior outlook of $3.0 billion to $3.5 billion. It projects 2026 FCF in the range of $4.5 billion to $5 billion. GE Vernova also raised its free cash flow cumulative guidance for 2025-2028 to $22 billion, up from $14 billion.
Backed by a strong demand backdrop, GE Vernova expects 16% to 18% organic revenue growth in its power segment and 20% growth in its electrification business in 2026.
Overall, GE Vernova is bullish on the road ahead, backed by its large and growing backlog, with strong margins from services and higher equipment pricing.
Is GEV Stock a Buy, Sell, or Hold?
Currently, Wall Street has a Moderate Buy consensus rating on GE Vernova stock based on 12 Buys, five Holds, and one Sell recommendation. The average GEV stock price target of $689.40 indicates a 2% downside risk from current levels.
These ratings/price targets could be revised as more analysts react to the company’s upbeat outlook.
