01—Abstract
Summary
Summary of the 10-Q filed April 22, 2026. Cited figures are marked; the original filing is the authoritative source.
GE Vernova Inc. (GEV) reported a significant increase in revenue and net income for the first quarter of 2026 compared to the prior year.
Total revenues reached $9.3 billiona, up 16% year-over-year, driven by strong performance in both equipment and services, notably boosted by the acquisition of Prolec GE. The company's net income soared to $4.7 billion, a substantial increase from $264 million in Q1 2025, largely attributed to a significant pre-tax gain of $4.0 billion from the Prolec GE acquisition and a $330 million gain from the sale of the Proficy business. Operationally, GE Vernova demonstrated improved profitability with a Net Income margin of 50.9%, up from 3.3% in the prior year.
The company also saw a significant increase in cash flow from operations, reaching $5.2 billionb, supporting robust free cash flow of $4.8 billion. The backlog, represented by Remaining Performance Obligations (RPO), grew to $163.3 billion, indicating strong future revenue potential across all segments, particularly Electrification and Power. The company also increased its share repurchase authorization to $10 billion.
02—Key points
Key Highlights
- Total revenues increased by 16% to $9.3 billion in Q1 2026 compared to $8.0 billion in Q1 2025.
- Net income surged to $4.7 billion, a substantial increase from $264 million in the prior year, primarily due to a $4.0 billion gain from the Prolec GE acquisition.
- The acquisition of Prolec GE for $5.3 billion significantly contributed to the Electrification segment's growth, with Prolec GE's net assets and results included from February 2, 2026.
- Remaining Performance Obligations (RPO) grew to $163.3 billion as of March 31, 2026, up from $123.4 billion in the prior year, reflecting strong future contract value.
- Cash from operating activities significantly increased to $5.2 billion in Q1 2026, compared to $1.2 billion in Q1 2025, leading to free cash flow of $4.8 billion.
- The company repurchased $1.3 billion of its common stock in Q1 2026 and announced an increase in its share repurchase program to $10 billion.
- Segment EBITDA increased by 67% to $958 million, with notable growth in the Power and Electrification segments, though the Wind segment experienced a significant EBITDA loss.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, GE Vernova Inc. kept $0.51.
- Revenue$9.34B100.0%
- Cost of revenue−$7.56B80.9%
- Gross profit$1.78B19.1%
- Operating costs−$1.60B17.2%
- Operating income$179.0M1.9%
- Interest, other & tax$4.57B48.9%
- Net income$4.75B50.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 22, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $9.34B$8.03B | +16.3% |
| Cost of Revenue | $7.56B$6.56B | +15.2% |
| Gross Profit | $1.78B$1.47B | +21.2% |
| R&D Expenses | $304.00M$239.00M | +27.2% |
| SG&A Expenses | $1.30B$1.19B | +9.3% |
| Operating Income | $179.00M$43.00M | +316.3% |
| Net Income | $4.75B$254.00M | +1768.1% |
| EPS (Basic) | $17.65$0.92 | +1818.5% |
| EPS (Diluted) | $17.44$0.91 | +1816.5% |
| Shares Outstanding (Basic) | 269.00M275.00M | −2.2% |
| Shares Outstanding (Diluted) | 272.00M279.00M | −2.5% |
05—Questions
Frequently Asked Questions
What was the primary driver of the substantial increase in net income for GE Vernova in Q1 2026?
The primary driver of the significant increase in net income was a pre-tax gain of $3.992 billion recognized from the remeasurement of GE Vernova's previously held equity interest in Prolec GE to fair value upon acquiring the remaining 50% stake. Additionally, a pre-tax gain of $330 million from the sale of the Proficy manufacturing software business also contributed.
How has the acquisition of Prolec GE impacted GE Vernova's financial performance?
The acquisition of Prolec GE, a leader in the electric industry, for $5.3 billion in February 2026, significantly boosted GE Vernova's Electrification segment. It contributed to increased revenues, a higher backlog (RPO), and a substantial gain recognized in 'Other income (expense) – net'. The integration of Prolec GE's operations is expected to enhance GE Vernova's presence in the North American transformer market.
What is the current status of GE Vernova's backlog (Remaining Performance Obligations - RPO)?
GE Vernova's Remaining Performance Obligations (RPO) stood at $163.3 billion as of March 31, 2026, representing a 9% increase from December 31, 2025, and a substantial 32% increase from March 31, 2025. This growth reflects strong demand across the Power and Electrification segments, partially offset by execution on existing contracts in the Wind segment.
How is GE Vernova managing its liquidity and capital resources?
GE Vernova reported a strong cash position with $10.2 billion in cash, cash equivalents, and restricted cash as of March 31, 2026. The company has access to a $3.0 billion revolving credit facility. Significant operational cash flow generation, a robust backlog, and a $10 billion share repurchase program demonstrate a focus on both strategic growth and shareholder returns.
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