GE Vernova Inc. surged to a record high on Wednesday after the power equipment maker forecast higher revenue for 2026 and raised its share buyback plans by $4 billion.
Rising electricity use from artificial intelligence and other data-heavy industries is driving strong growth across the company's grid and gas-turbine businesses, positioning the U.S.-based manufacturer for longer-term expansion.
Vernova has climbed more than 370% since its spin-off from General Electric in March 2024. It was up 15% at an all-time high of $722 on Wednesday.
The company raised its share repurchase authorization to $10 billion from $6 billion and doubled its quarterly dividend to 50 cents per share.
GE Vernova expects annualized output of gas turbines to reach 20 gigawatts (GW) by mid-2026, and about 24 GW in 2028.
William Blair analyst Jed Dorsheimer said the rise in deliveries was expected after key rivals Siemens Energyand Mitsubishi Heavy Industries lifted their own targets.
The company's investor day "fired on all cylinders," he said. He also noted that all available production slots for the company's turbines are sold out through 2028 and expects visibility to extend to 2030.
The company expects 16% to 18% organic revenue growth in its power segment and 20% growth in its electrification business in 2026.
"The outlook leaves room for further outperformance," analysts at RBC Capital said.
It projected free cash flow of $4.5 billion to $5.0 billion next year, topping the $3.5 to $4 billion it expects in 2025.
GE Vernova expects 80 GW of signed combined-cycle gas turbine contracts by year-end, it said in a separate filing.
The company is also working with the U.S. government to boost yttrium stockpiles as China's export controls tighten supplies of the rare earth used in energy, aerospace and semiconductor applications, CEO Scott Strazik said.
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