Key Stats for Generac Stock
- Price Change: +17.22%
- Current Price: ~$214
- TIKR Model Target: $233
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What Happened?
Generac Holdings Inc. (GNRC) skyrocketed 17.22% to close near $213.70 on Wednesday, hitting a multi-year high as investors aggressively bought the stock following a transformative earnings update.
While the company actually missed Wall Street’s Q4 estimates, reporting a 12% revenue decline to $1.09 billion and weaker-than-expected adjusted EPS of $1.61, the market completely ignored the near-term weakness in residential sales.
Instead, investors zeroed in on a massive surge in the company’s Commercial & Industrial (C&I) segment, where sales jumped 10% to $400 million.
This growth was driven primarily by explosive demand for large megawatt backup generators from data center customers.
As tech giants race to build out power-hungry artificial intelligence facilities, uninterrupted power is non-negotiable.
Consequently, investors are officially re-rating Generac from a cyclical home standby generator business into a critical “AI Infrastructure” play.
The bullish sentiment was cemented by management’s incredible 2026 outlook.
Generac guided for C&I sales to grow by a staggering 30% this year, largely fueled by this new data center momentum and a rapidly growing $400 million backlog.
See analysts’ growth forecasts and price targets for Generac stock (It’s free!) >>>
Is Generac Undervalued Today?
During the earnings call, CEO Aaron Jagdfeld highlighted the company’s rapid penetration into the hyperscaler market.
He stated: “We made significant progress with our efforts in the data center market as momentum accelerated… We further developed partnerships in the quarter with multiple hyperscalers, including progressing to the pilot phases of our relationships with 2 specific customers as we prepare for potential significant volumes in 2027 and 2028.”
Jagdfeld also emphasized the company’s commitment to scaling operations: “We expect that our domestic manufacturing capacity for large megawatt generators will surpass $1 billion by the fourth quarter of this year.”
CFO York Ragen provided the financial context for the year ahead: “We expect robust C&I product sales growth in the plus 30% range during 2026, primarily driven by products sold to data center customers.”
Read the full Generac Transcript on TIKR to see the 2026 Roadmap >>>
According to TIKR’s Advanced Valuation Model, the stock still has room to run as the market digests the long-term magnitude of the data center buildout.
- Target Price: $233
- Current Price: ~$214
- Potential Upside: +9.2%
Valuation Deep Dive
The investment case for Generac has structurally shifted from a weather-dependent residential play to an AI-driven growth story.
With the stock trading at ~$214, the market is rewarding the company’s strategic pivot, and the $233 target implies that margins and revenue will scale seamlessly as new factory capacity comes online.
- The AI Tailwind: Data centers require massive, reliable backup power to keep AI servers running during grid instability. Generac’s large megawatt diesel generators are becoming mission-critical assets in this ecosystem.
- The Margin Expansion: Management indicated that while early data center projects may carry mid-teens EBITDA margins, achieving scale could push those margins into the high teens (27-28% range) over time, significantly boosting overall corporate profitability.
- The Value Gap: The $233.35 target reflects the premium valuation Generac deserves as it captures a growing share of what could be a $15 billion annual market for data center backup power.
If Generac can successfully convert its hyperscaler pilot programs into massive multi-year master supply agreements, the path to $233.35 could be just the beginning of a sustained re-rating.
Conclusion: Powered by AI. With nearly 9.2% upside potential to the TIKR target of $233.35, Generac offers a compelling opportunity for investors seeking a “picks and shovels” play in the AI infrastructure boom.
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How Much Upside Does Generac Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
