AI Power Boom Drives GE Vernova Orders as Wind Losses Mount
GE Vernova lifted its 2026 revenue outlook after a record surge in power equipment orders from data center developers, though deepening losses in its wind division highlight ongoing sector-wide headwinds ahead of European competitor earnings.
GE Vernova raised its full-year revenue forecast on Wednesday, pointing to a record surge in demand for gas turbines and grid equipment. The company reported second-quarter revenue of $11.1 billion, a 22% increase that beat analyst expectations.
Orders jumped 88% to $24.2 billion, pushing the total backlog to $176 billion. Power orders more than doubled, driven largely by utilities and hyperscale data center developers scrambling to secure electricity infrastructure. Data center orders alone have surpassed $5 billion this year, more than double the total booked in all of 2025.
Buoyed by this demand, GE Vernova lifted its 2026 revenue guidance to a range of $45.5 billion to $46.5 billion. The sheer volume of power and electrification bookings highlights how generative artificial intelligence is forcing a rapid recalibration of grid capacity, creating a highly lucrative near-term market for established power equipment suppliers.
The wind business, however, presented a starkly different picture. Segment revenue fell 10% to $2.03 billion, while adjusted EBITDA losses widened to roughly $275 million.
The company now expects its wind unit to lose about $400 million for the full year. Years of inflation, supply chain disruptions, elevated financing costs, and rising construction expenses have chipped away at project returns, making it difficult for manufacturers to price turbines profitably.
Offshore wind faces particularly acute political and regulatory friction. The Trump administration has halted new offshore leasing, cancelled several federally backed projects, and frozen Defense Department reviews impacting over 100 proposed wind farms, while redirecting billions of dollars toward oil and gas development. Although federal courts have overturned parts of these policies, the resulting regulatory uncertainty continues to stall new developments.
This stark divergence within GE Vernova's portfolio sets a cautious stage for upcoming European earnings. Investors will closely scrutinize the results from Siemens Energy on August 5, Vestas Wind Systems on August 12, and Ørsted on August 13 to determine whether the structural pricing and political pressures plaguing GE Vernova's wind division are an isolated case or evidence of a prolonged industry-wide downturn.
