AI Takeaway
GE Vernova delivered strong Q2 FY2026 results with revenue up 21.9% to $11.1B and operating income up 72.8% to $653M, driven by the Prolec GE acquisition and robust Electrification and Power segment growth, though net margin was pressured by a higher effective tax rate of 29.8% and Offshore Wind continued to post segment losses.
Revenue
$11.1B
++21.87% YoY
EPS (Basic)
$2.49
++31.75% YoY
Gross Margin
21.3%
++0.99% YoY
Operating Income
$653M
++72.75% YoY
Filed · Source: SEC EDGAR 10-Q filing
GE Vernova (GEV) reported Q2 FY2026 revenue of $11.1B, up 21.9% year over year. The company posted net income of $668M, up 30.0% from a year earlier, with diluted EPS of $2.47. Gross margin was 21.3%.
On February 2, 2026, GE Vernova completed the acquisition of the remaining 50% stake of Prolec GE for approximately $5.3 billion, consolidating the transformer manufacturer into the Electrification segment. This drove Electrification segment revenue up 68% to $3.637B for the quarter, and the deal triggered a $4.0 billion pre-tax remeasurement gain recognized in Q1 2026.
Source: 10-Q Item 2 MD&A
Total Remaining Performance Obligations (RPO) reached $176.3 billion as of June 30, 2026, up 37% from $128.7 billion a year earlier, driven by Gas Power (Heavy-Duty Gas Turbine and Aeroderivative equipment) and Electrification demand, partially offset by declines in Wind orders.
Source: 10-Q Item 2 MD&A
The Wind segment posted a negative EBITDA of $(275)M for the quarter (vs $(165)M prior year), with Offshore Wind facing higher project costs; the Vineyard Wind project completed turbine installation in Q1 2026 after a brief U.S. Department of Interior leasing pause was lifted on January 27, 2026, and management is now resolving outstanding claims with the customer.
Source: 10-Q Item 2 MD&A
Management estimates the total cost impact from global tariffs imposed throughout 2025-2026 at approximately $100 million to $200 million in 2026, after considering contractual protections and mitigating actions, though actual impacts could differ materially.
Source: 10-Q Item 2 MD&A
The effective tax rate was 29.8% for the three months ended June 30, 2026, above the 21% U.S. statutory rate, primarily due to updated purchase price allocation estimates on the Prolec GE acquisition and losses providing no tax benefit in certain jurisdictions, partially offset by stock-based compensation tax benefits.
Source: 10-Q Item 2 MD&A
The Wind segment reported negative segment EBITDA of $(275)M for the quarter, worsening from $(165)M a year earlier, with Offshore Wind experiencing higher project costs and cost/timeline pressure as it works through remaining commissioning and unresolved claims/counterclaims with its customer on the Vineyard Wind project.
Source: 10-Q Item 2 MD&A
Global tariffs imposed by the U.S. and other countries are estimated to cost the company approximately $100-200 million in 2026 after mitigating actions, with management noting actual impacts could be significantly different depending on tariff scope, duration, and countermeasures.
Source: 10-Q Item 2 MD&A
The quarterly effective tax rate jumped to 29.8% from 23.7% a year earlier, driven by purchase price allocation adjustments related to the Prolec GE acquisition and jurisdictional losses with no tax benefit, indicating earnings sensitivity to acquisition-related tax accounting.
Source: 10-Q Item 2 MD&A
Current liabilities of $55.83B exceed current assets of $47.43B, resulting in a current ratio of 0.85, while total liabilities of $67.69B against equity of $11.96B produce a debt-to-equity ratio of 5.66, reflecting a highly leveraged balance sheet structure.
Source: 10-Q Balance Sheet (XBRL)
Wind segment RPO decreased $2.1 billion (9%) from June 30, 2025, primarily due to decreased Onshore Wind orders in North America and continued execution-driven decline at Offshore Wind, signaling potential future revenue headwinds for the segment.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $11.1B | $9.11B | +21.87% |
Cost of Revenue | $8.74B | $7.27B | +20.34% |
Gross Profit | $2.36B | $1.85B | +27.84% |
Operating Income | $653M | $378M | +72.75% |
Net Income | $668M | $514M | +29.96% |
EPS (Basic) | $2.49 | $1.89 | +31.75% |
EPS (Diluted) | $2.47 | $1.86 | +32.80% |
R&D Expense | $334M | $282M | +18.44% |
SG&A Expense | $1.37B | $1.19B | +15.78% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $80.8B | $53.08B | +52.23% |
Current Assets | $47.43B | $34.71B | +36.66% |
Total Liabilities | $67.69B | $43.13B | +56.93% |
Current Liabilities | $55.83B | $33.76B | +65.37% |
Stockholders' Equity | $11.96B | $8.88B | +34.70% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $10.68B | $1.53B | +598.95% |
Investing Cash FlowYTD | $-4.06B | $-214M | -1798.13% |
Financing Cash FlowYTD | $-2.3B | $-1.86B | -23.64% |
Dividends PaidYTD | $273M | $139M | +96.40% |
Share BuybacksYTD | $3.67B | $1.58B | +132.19% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 21.3% | 20.3% | +0.99% |
Operating Margin | 5.9% | 4.1% | +1.73% |
Net Margin | 6.0% | — | — |
ROE | 5.6% | — | — |
ROA | 0.8% | — | — |
Current Ratio | $0.85 | — | — |
Debt to Equity | $5.661 | — | — |
Expected release date, analyst estimates & what to watch
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.
GEV delivered exceptional FY2025 results with revenue rising 9.0% to $38.1B, while net income surged 214.7% to $4.9B and operating cash flow nearly doubled to $5.0B, reflecting significant margin expansion and operational leverage.
The filing does not disclose analyst consensus estimates, so a direct beat/miss comparison cannot be confirmed from this 10-Q. However, GE Vernova reported strong YoY growth with revenue up 21.9% to $11.104B and diluted EPS up 32.8% to $2.47, reflecting robust operational momentum.
Revenue grew 21.9% YoY to $11.104B, primarily due to the Prolec GE acquisition boosting Electrification segment revenue by 68% to $3.637B, along with higher Gas Power volumes and favorable pricing at Power, partially offset by lower Onshore Wind deliveries.
GE Vernova completed the $5.3 billion acquisition of the remaining 50% stake of Prolec GE on February 2, 2026, consolidating it into the Electrification segment and driving a significant revenue increase there; the deal also triggered a $4.0 billion pre-tax remeasurement gain recognized in Q1 2026.
Key risks include continued Offshore Wind project cost pressure and unresolved claims on the Vineyard Wind project, an estimated $100-200 million tariff cost impact for 2026, and a jump in the effective tax rate to 29.8% for the quarter due to Prolec GE purchase price allocation updates.
GE Vernova shows strong profitability growth with net income up 30.0% YoY to $668M and operating margin improving to 5.9%, alongside record backlog (RPO) of $176.3 billion, though its current ratio of 0.85 and debt-to-equity ratio of 5.66 reflect a leveraged balance sheet typical of its contract-heavy business model.