01—Abstract
Summary
Summary of the 10-Q filed July 22, 2026. Cited figures are marked; the original filing is the authoritative source.
GE Vernova Inc. (GEV) reported strong performance in the second quarter of 2026, with total revenues increasing by 22% year-over-year to $11.1 billiona.
This growth was driven by a significant 32% increase in equipment revenues, largely attributable to the acquisition of Prolec GE and strong demand in the Electrification segment. Net income attributable to GE Vernova surged by 30% to $668 millionb, translating to diluted earnings per share of $2.47, up from $1.86 in the prior year's quarter. The company also demonstrated robust operational execution, with Segment EBITDA increasing by 62% to $1.25 billion.
The Power and Electrification segments were key contributors, showing significant year-over-year growth in both revenue and profitability. The Wind segment continued to face challenges, with revenues decreasing and Segment EBITDA remaining negative, primarily due to ongoing project cost pressures and lower deliveries in Onshore Wind. Despite these segment-specific headwinds, the overall financial health appears strong, underscored by a substantial increase in operating cash flow to $10.7 billionc for the six-month period.
02—Key points
Key Highlights
- Total revenues increased by 22% to $11.1 billion in Q2 2026, driven by strong performance across segments, particularly Electrification due to the Prolec GE acquisition.
- Net income attributable to GE Vernova grew by 30% to $668 million, leading to a diluted EPS of $2.47, up from $1.86 in Q2 2025.
- Segment EBITDA saw a significant increase of 62% to $1.25 billion, indicating improved operational profitability.
- The Power segment demonstrated strong revenue growth of 14% and a substantial increase in Segment EBITDA margin to 18.8%.
- The Electrification segment experienced robust revenue growth of 68% and improved Segment EBITDA margin to 18.4%, bolstered by the Prolec GE acquisition.
- The Wind segment's performance remained challenging, with revenues down 10% and Segment EBITDA remaining negative, impacted by project costs and lower deliveries.
- Operating cash flow for the first six months of 2026 was exceptionally strong at $10.7 billion, a significant increase from $1.5 billion in the prior year, largely due to working capital improvements.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, GE Vernova Inc. kept $0.06.
- Revenue$11.10B100.0%
- Cost of revenue−$8.74B78.7%
- Gross profit$2.36B21.3%
- Operating costs−$1.71B15.4%
- Operating income$653.0M5.9%
- Interest, other & tax$15.0M0.1%
- Net income$668.0M6.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 22, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $11.10B$9.11B | +21.9% |
| Cost of Revenue | $8.74B$7.27B | +20.3% |
| Gross Profit | $2.36B$1.85B | +27.8% |
| R&D Expenses | $334.00M$282.00M | +18.4% |
| SG&A Expenses | $1.37B$1.19B | +15.8% |
| Operating Income | $653.00M$378.00M | +72.8% |
| Net Income | $668.00M$514.00M | +30.0% |
| EPS (Basic) | $2.49$1.89 | +31.7% |
| EPS (Diluted) | $2.47$1.86 | +32.8% |
| Shares Outstanding (Basic) | 268.00M272.00M | −1.5% |
| Shares Outstanding (Diluted) | 270.00M276.00M | −2.2% |
05—Questions
Frequently Asked Questions
What were the main drivers of GE Vernova's revenue growth in the second quarter of 2026?
GE Vernova's revenue growth in Q2 2026 was primarily driven by the acquisition of Prolec GE, which significantly boosted the Electrification segment's equipment revenues. Strong demand for switchgear, transformers, and substation solutions also contributed. The Power segment saw growth from higher Aeroderivative unit deliveries and favorable pricing, while the Wind segment experienced increases in Offshore Wind deliveries and installations, though Onshore Wind deliveries were lower.
How did the acquisition of Prolec GE impact GE Vernova's financial results?
The acquisition of Prolec GE had a substantial positive impact, significantly increasing revenues and assets within the Electrification segment. It also contributed to a significant pre-tax gain of $4.0 billion recognized in 'Other income (expense) - net' due to the remeasurement of the previously held equity interest. The acquisition also led to an increase in goodwill and intangible assets on the balance sheet.
What are the key challenges GE Vernova is facing, particularly in the Wind segment?
The Wind segment continues to face challenges. For Offshore Wind, the company is experiencing pressure related to project costs and execution timelines, including resolving claims and counterclaims on the Vineyard Wind project. For Onshore Wind, revenues decreased due to lower equipment deliveries and a decrease in orders, partly impacted by tariffs. The segment's Segment EBITDA remains negative, reflecting these operational and cost pressures.
How is GE Vernova managing its liquidity and capital resources?
GE Vernova reported a strong liquidity position with $13.1 billion in cash, cash equivalents, and restricted cash as of June 30, 2026. The company also has access to a $3.0 billion committed revolving credit facility. The significant increase in operating cash flow to $10.7 billion for the first six months of 2026, largely due to working capital improvements, further strengthens its financial position. The company also repurchased $2.3 billion of common stock in Q2 2026 under its expanded $10 billion repurchase program.
06—Continue