GE Vernova Set to Report Q3 Earnings Amid AI Demand Growth

NEW YORK, NY — GE Vernova, a component of the S&P 500, is set to report its third-quarter earnings on Wednesday before the stock market opens. Analysts expect a significant profit improvement compared to the same period last year, driven by rising demand for AI data centers.

Analysts predict GE Vernova will report earnings per share (EPS) of $1.72, a substantial shift from a loss of 16 cents per share a year ago. Revenues are expected to rise 2.6% to $9.15 billion, as noted by FactSet. However, the Sharp consensus points to an even higher estimate of $1.78 per share.

Investors and analysts are particularly keen to hear about the company’s natural gas turbine backlog and whether GE Vernova will adjust its 2025 financial guidance. In late July, the company reported EPS of $1.73, up from just 8 cents per share the previous year, alongside an 11% revenue increase to $9.1 billion. At that time, GE Vernova raised its 2025 revenue outlook to between $36 billion and $37 billion.

William Blair analyst Jed Dorsheimer described GE Vernova as the “best name” in the AI power sector, stating the company is “firing on all cylinders.” Their report highlighted that GE Vernova had a backlog of 55 gigawatts after securing nine gigawatts of new contracts in Q2.

On Sept. 15, Morgan Stanley analyst David Arcaro expressed increased confidence in GE Vernova’s long-term prospects following insights from the Laguna Conference. He noted, “Considering the outlook for data center growth and increased electric demand, management sees the current cycle as strong and prolonged.”

In addition to its gas operations, GE Vernova is advancing in nuclear energy. The company’s nuclear division is developing small modular reactors in the UK, reflecting rising interest in nuclear power to support AI initiatives. However, shares of GE Vernova dropped 1.5% to 585.22 on Tuesday and have fallen about 4.8% in October.

Despite stock fluctuations, GE Vernova has gained 78% this year, ranking among the top 20 performers in the S&P 500 index. Morgan Stanley recently elevated its price target for GE Vernova from 675 to 690, maintaining an overweight rating. Conversely, Rothschild & Co Redburn downgraded the stock from neutral to sell, citing concerns over valuations.

As GE Vernova prepares for its earnings report, investors await crucial updates on its backlog and future growth projections.