GE Vernova raises its annual revenue and profit margin forecasts for data centers

GE Vernova raised its 'annual forecasts of revenue & adjusted core profit margin on Wednesday, thanks to strong demand for its power equipment from data centers.

The?shares? of the company rose 4.2% during pre-market trading.

According to the Energy Information Administration (EIA), U.S. electric consumption will continue to rise in 2026-2027. This is partly due to?power-hungry artificial intelligence data centers.

By the end of the year, GE Vernova's CEO Scott Strazik stated that the company expects at least 110 gigawatts (GW) in?combined backlog of gas turbines and slot reservation agreements.

The company now expects revenues of $44.5 to $45.5 billion by?2026 compared to its previous view of $44 to $45 billion.

According to LSEG data, analysts expected GE Vernova's annual revenue to be $44.5 billion by 2026.

The company forecasts that the core profit margin will be between 12% and 14 % in 2026, up from 11 - 13%. Analysts expected an average of 13.7%.

It reported $18.3 Billion in orders for the first quarter. This is a 71% increase organically.

The 'electrification' unit posted a core profit in the amount of $528.8 million. This is up from $205.8 million a year earlier. Meanwhile, the 'power unit? reported $811.8 million. This represents a nearly 57% increase.

The Cambridge, Massachusetts-based company reported adjusted core earnings of $896 millions in the three months ending March 31 compared to analysts' expectations of $777.7 million. (Reporting and editing by Sahal Muhammad in Bengaluru, with Pooja Menon reporting from Bengaluru)

(source: Reuters)