Key Stats for GEV Stock
- Year-to-Date Performance: 34%
- 52-Week Range: $252 to $895
- Valuation Model Target Price: $1,735
- Implied Upside: 99%
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What Happened?
GE Vernova stock finished near $874 this week and is now up about 34% year to date, reflecting sustained buying interest as investors respond to accelerating power demand and stronger financial results.
Shares remain near the upper end of their $252 to $895 52 week range, signaling continued momentum rather than short term volatility.
The stock moved higher this week because GE Vernova delivered strong fourth quarter and full year 2025 results, raised 2026 guidance, expanded backlog margins, and doubled its dividend.
The company reported $59 billion of orders, up 34% year over year, revenue of $38 billion, up 9%, and a record $150 billion backlog after increasing more than $31 billion.
Free cash flow reached $3.7 billion, more than double the prior year, and management raised 2026 revenue guidance to $44 billion to $45 billion and free cash flow guidance to $5 billion to $5.5 billion, with CEO Scott Strazik stating 2025 “sets us up for substantially more profitable growth moving forward.”
Power and Electrification drove the momentum. Gas Power equipment orders more than doubled in 2025, while Electrification delivered 26% revenue growth and a $31 billion equipment backlog supported by grid upgrades and direct data center demand.
Gas slot reservations increased from 62 gigawatts to 83 gigawatts sequentially, and management expects to approach 100 gigawatts under contract in 2026, reinforcing multi year visibility into turbine shipments and services growth.
Institutional activity remains active. Norges Bank disclosed a new roughly $1.81 billion stake, Mitsubishi UFJ Asset Management increased its holdings by 4.4%, and Intech Investment Management boosted its position by 127.6%.
At the same time, TD Asset Management trimmed its stake by 14%, Westfield Capital reduced its exposure by 18%, and SeaTown Holdings cut its position by 15.7%, reflecting portfolio rebalancing after the stock’s strong rally.
The combination of record backlog growth, raised 2026 guidance, and continued institutional participation helps explain the stock’s sharp year to date advance.
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Is GEV Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 14.9%
- Operating Margins: 15.6%
- Exit P/E Multiple: 52.5x
Revenue is projected to expand from about $44 billion in 2026 toward nearly $70 billion by 2030, reflecting sustained demand for gas turbines, grid modernization, and data center power infrastructure.
That growth is meaningful because incremental turbine deliveries and long term service agreements carry higher margin potential, allowing operating leverage as volumes scale.
Gas Power backlog conversion remains a central earnings driver. Management expects to reach roughly 100 gigawatts under contract in 2026, with production capacity ramping toward 20 gigawatts annually starting midyear.
Electrification is also positioned for continued expansion, with revenue expected between $13.5 billion and $14 billion in 2026, driven by grid equipment, switchgear, HVDC systems, and transformer demand tied to hyperscaler data centers.
Operating margins expanding toward the mid teens assume stronger pricing, productivity gains, and improved execution across backlog.
EBITDA growth is expected to outpace revenue growth over the next two years, highlighting how scale benefits and cost discipline could materially lift profitability. Free cash flow guidance of up to $5.5 billion in 2026 reinforces financial flexibility and capital return potential.
Based on these inputs, the model estimates a target price of $1,735, implying about 99% total upside over the next 2.8 years.
At current levels near $874, the stock appears undervalued if management continues converting backlog into profitable revenue and delivers sustained margin expansion, with 2026 performance likely defined by turbine shipment cadence, grid project execution, and cash flow inflection.
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How Much Upside Does GEV Stock Have From Here?
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All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
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