AI Takeaway
GEV delivered a standout Q1 2026 with revenue up 16.3% YoY to $9.34B and net income surging 1,768% to $4.75B, driven by exceptional operating cash flow of $5.19B, though liquidity remains tight with a current ratio below 1.
Revenue
$9.34B
++16.27% YoY
EPS (Basic)
$17.65
++1818.48% YoY
Gross Margin
19.1%
++0.77% YoY
Operating Income
$179M
++316.28% YoY
Filed · Source: SEC EDGAR 10-Q filing
Revenue grew 16.3% YoY to $9.34B in Q1 2026 from $8.03B in Q1 2025, reflecting strong demand across GEV's business segments. Gross profit expanded 21.2% to $1.78B, outpacing revenue growth and indicating improving pricing power or mix shift.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Operating income surged 316.3% YoY to $179M from $43M, demonstrating significant operating leverage as revenue growth outpaced SG&A growth of 9.3% ($1.30B) and R&D growth of 27.2% ($304M). Operating margin expanded 140 basis points to 1.92%.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Net income of $4.75B vastly exceeded operating income of $179M, implying approximately $4.57B in non-operating gains (such as asset sales, divestitures, or investment gains) boosted the bottom line. Net margin reached 50.8%, which is atypical for an industrial company and likely non-recurring.
Source: Source: 10-Q Income Statement & Cash Flow Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockGEV's current ratio stands at 0.89, meaning current liabilities of $48.1B exceed current assets of $43.0B by approximately $5.1B. This negative working capital position could constrain operational flexibility if short-term obligations come due simultaneously or credit markets tighten. Management must carefully manage cash conversion cycles and credit facilities.
Source: Source: 10-Q Balance Sheet (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.08 versus the $1.84 analyst consensus — a +13.1% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $9.34B | $8.03B | +16.27% |
Cost of Revenue | $7.56B | $6.56B | +15.18% |
Gross Profit | $1.78B | $1.47B | +21.16% |
Operating Income | $179M | $43M | +316.28% |
Net Income | $4.75B | $254M | +1768.11% |
EPS (Basic) | $17.65 | $0.92 | +1818.48% |
EPS (Diluted) | $17.44 | $0.91 | +1816.48% |
R&D Expense | $304M | $239M | +27.20% |
SG&A Expense | $1.3B | $1.19B | +9.26% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $75.61B | $51.56B | +46.65% |
Current Assets | $42.97B | $33.94B | +26.62% |
Total Liabilities | $60.55B | $41.89B | +44.55% |
Current Liabilities | $48.09B | $32.68B | +47.18% |
Stockholders' Equity | $13.92B | $8.61B | +61.75% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $5.19B | $1.16B | +346.86% |
Investing Cash Flow | $-4.29B | $-93M | -4513.98% |
Financing Cash Flow | $442M | $-1.26B | +135.16% |
Dividends Paid | $137M | $69M | +98.55% |
Share Buybacks | $1.28B | $1.1B | +16.08% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 19.1% | 18.3% | +0.77% |
Operating Margin | 1.9% | 0.5% | +1.38% |
Net Margin | 50.8% | — | — |
ROE | 34.1% | — | — |
ROA | 6.3% | — | — |
Current Ratio | $0.893 | — | — |
Debt to Equity | $4.349 | — | — |
GEV reported Q1 2026 revenue of $9.34B (+16.3% YoY) and a dramatic net income of $4.75B, though the bulk of that profit appears to stem from non-recurring non-operating gains rather than core operations. Operating income was $179M (1.92% margin), and operating cash flow surged 347% to $5.19B, reflecting genuine underlying business strength.
GEV's net income of $4.75B far exceeds its operating income of $179M, implying approximately $4.57B came from non-operating sources such as asset divestitures, investment gains, or other one-time items. This means the reported EPS of $17.65 is unlikely to be repeatable in future quarters, and investors should focus on operating income and cash flow as better indicators of ongoing earnings power.
GEV's financial health shows a mixed picture: operating cash flow is robust at $5.19B and stockholders' equity grew 61.8% to $13.9B, but the current ratio of 0.89 signals near-term liquidity tightness and the debt-to-equity ratio of 4.35x reflects high leverage. The $4.29B surge in investing outflows also suggests major capital commitments that will need to generate returns.
Yes, GEV grew revenue 16.3% YoY to $9.34B in Q1 2026, up from $8.03B in Q1 2025. Gross profit grew even faster at 21.2% to $1.78B, suggesting improving efficiency or favorable business mix.
Based on the financial data, key risks include a current ratio below 1.0 (current liabilities exceed current assets by ~$5.1B), high financial leverage at 4.35x debt-to-equity, and the non-recurring nature of the $4.75B net income which masks thin core operating margins of just 1.92%. The sharp increase in investing outflows to $4.29B also raises questions about the scale and return profile of new capital commitments.