Why is GAAP net income so much higher than operating profit trends would suggest?

Net income of $4.75B includes about $4.5B of pre-tax gains from acquisitions and dispositions, primarily the $3.99B remeasurement gain on GE Vernova's previously held 50% stake in Prolec GE when it acquired the remaining interest, plus a $330M gain on the Proficy software sale. Excluding these items, the company's adjusted EBITDA of $896M is the better gauge of underlying profitability.

What changed in the 2026 guidance?

Management raised revenue guidance to $44.5-45.5B (from $44-45B), adjusted EBITDA margin to 12%-14% (from 11%-13%), and free cash flow to $6.5-7.5B (from $5.0-5.5B). Power segment EBITDA margin guidance moved to 17%-19% and Electrification's to 18%-20%, while Electrification revenue guidance rose to $14.0-14.5B, including about $3B from Prolec GE.

How much of the growth is from acquisitions versus organic performance?

Reported revenue growth of 16% includes about 6 points from acquisitions, mainly Prolec GE, and foreign currency effects. Organic revenue grew 7%, and organic orders grew 71%. Adjusted organic EBITDA rose 87% to $778M, and the organic adjusted EBITDA margin expanded 390 bps to 9.1%.

What is the outlook for gas turbine demand and what risks come with it?

Gas Power backlog and slot reservation agreements reached 100 GW, and management expects at least 110 GW by year-end 2026. The company signed 21 GW of new gas contracts in the quarter, mostly slot reservation agreements, so much of this backlog is not yet firm orders. Converting these agreements to orders, executing on delivery schedules, and managing inflation and expansion costs are key execution risks.

Are there any concerns investors should monitor?

Wind is still loss-making, with segment EBITDA of -$382M and a segment margin of -26.7%, driven by Onshore Wind volume and tariffs and by Offshore Wind contract losses. Free cash flow was boosted by working capital timing, so quarterly cash generation may not persist. Management also committed to $6B of capex and $5B of R&D through 2028, and the $2.6B bond issuance adds to leverage.

GEV 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 22, 2026. Cited figures are marked; the original filing is the authoritative source.

GE Vernova (GEV) reported first-quarter 2026 results on April 22, 2026, and raised its full-year 2026 guidance.

Orders were $18.3B^a, up 71% organically, with growth in all three segments, and backlog grew by $13.0B sequentially (including roughly $5B from Prolec GE). Revenue rose 16% to $9.3B (7% organically), led by Electrification and Power equipment. GAAP net income was $4.75B (diluted EPS $17.44), but this is heavily inflated by $4.5B of pre-tax M&A gains, primarily the remeasurement gain on the Prolec GE stake, so investors should focus on operating metrics rather than headline earnings.

Operating momentum was strong. Adjusted EBITDA nearly doubled to $896M^b, with margin expanding 390 bps to 9.6%. Free cash flow was $4.8B, more than quadrupling year over year and exceeding all of 2025, helped by working capital benefits.

Power orders rose 59% organically and gas turbine backlog plus slot reservation agreements reached 100 GW, with management now targeting at least 110 GW by year-end 2026. Electrification booked $7.1B^c of orders (book-to-bill of roughly 2.5) and ended the quarter with a $38.6B equipment backlog. Wind remained a drag, with revenue down 23% and segment EBITDA losses of $382M.

Full-year 2026 guidance was raised across the board: revenue to $44.5^d-45.5B (from $44-45B), adjusted EBITDA margin to 12%-14% (from 11%-13%), and free cash flow to $6.5-7.5B (from $5.0-5.5B). Capital returns continued, with $1.3B of buybacks and $0.5 per share in quarterly dividends, while the company closed the Prolec GE acquisition (about $5.3B cash) and kept a $10.2B cash balance. Investors should weigh the strong growth and margin trajectory against Wind losses, the large one-time gains, and execution risk around the 110 GW gas turbine target.

02—Key points

Key Highlights

Orders of $18.3B, up 71% organically, with growth in every segment; Power orders up 59% organically and Electrification orders up 86% organically
Revenue of $9.3B, up 16% reported and 7% organically, led by Electrification and Power equipment
Adjusted EBITDA of $896M, nearly doubling year over year, with margin up 390 bps to 9.6%; full-year adjusted EBITDA margin guidance raised to 12%-14%
Free cash flow of $4.8B, more than quadrupling year over year and exceeding full-year 2025 FCF; 2026 FCF guidance raised to $6.5-7.5B
GAAP net income of $4.75B (diluted EPS $17.44) is inflated by $4.5B of pre-tax M&A gains, mainly the Prolec GE remeasurement gain of $3.99B
Gas Power backlog plus slot reservation agreements grew from 83 GW to 100 GW, with a target of at least 110 GW by year-end 2026
Wind segment remains weak: revenue down 23% and segment EBITDA loss widened to $382M, with 2026 Wind organic revenue guided down low-double digits

03—Questions

Frequently Asked Questions

Why is GAAP net income so much higher than operating profit trends would suggest?
Net income of $4.75B includes about $4.5B of pre-tax gains from acquisitions and dispositions, primarily the $3.99B remeasurement gain on GE Vernova's previously held 50% stake in Prolec GE when it acquired the remaining interest, plus a $330M gain on the Proficy software sale. Excluding these items, the company's adjusted EBITDA of $896M is the better gauge of underlying profitability.
What changed in the 2026 guidance?
Management raised revenue guidance to $44.5-45.5B (from $44-45B), adjusted EBITDA margin to 12%-14% (from 11%-13%), and free cash flow to $6.5-7.5B (from $5.0-5.5B). Power segment EBITDA margin guidance moved to 17%-19% and Electrification's to 18%-20%, while Electrification revenue guidance rose to $14.0-14.5B, including about $3B from Prolec GE.
How much of the growth is from acquisitions versus organic performance?
Reported revenue growth of 16% includes about 6 points from acquisitions, mainly Prolec GE, and foreign currency effects. Organic revenue grew 7%, and organic orders grew 71%. Adjusted organic EBITDA rose 87% to $778M, and the organic adjusted EBITDA margin expanded 390 bps to 9.1%.
What is the outlook for gas turbine demand and what risks come with it?
Gas Power backlog and slot reservation agreements reached 100 GW, and management expects at least 110 GW by year-end 2026. The company signed 21 GW of new gas contracts in the quarter, mostly slot reservation agreements, so much of this backlog is not yet firm orders. Converting these agreements to orders, executing on delivery schedules, and managing inflation and expansion costs are key execution risks.
Are there any concerns investors should monitor?
Wind is still loss-making, with segment EBITDA of -$382M and a segment margin of -26.7%, driven by Onshore Wind volume and tariffs and by Offshore Wind contract losses. Free cash flow was boosted by working capital timing, so quarterly cash generation may not persist. Management also committed to $6B of capex and $5B of R&D through 2028, and the $2.6B bond issuance adds to leverage.

04—Continue

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