GE Vernova reported sharply higher third-quarter revenue, orders and cash generation as demand for power equipment and services remained strong. The company also raised its 2026 financial guidance and doubled its share-repurchase authorization to $20 billion from $10 billion.
The quarter’s growth was led by Power and Electrification. GE Vernova’s total backlog reached $197 billion, up $20 billion sequentially, and the company said it expects backlog to exceed $200 billion in the fourth quarter.
Key details
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Overall results: Revenue rose 27% to $12.6 billion, or 18% organically. Net income was $1.3 billion, with a 10.2% net margin. Adjusted EBITDA was $1.9 billion, and its margin was 15.4%, up 6.9 percentage points organically.
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Orders and backlog: Orders increased 96% organically to $29.3 billion. Backlog grew by $20 billion from the prior quarter to $197 billion, supported by equipment and services demand.
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Cash and shareholder returns: Cash from operating activities was $6.1 billion, and free cash flow was $5.4 billion, up $4.7 billion from a year earlier. GE Vernova attributed the increase mainly to stronger working-capital benefits and adjusted EBITDA, partly offset by higher taxes. The company had $16.8 billion in cash and said it had returned $5.7 billion to shareholders in the first nine months of 2026.
- It repurchased about 1.7 million shares for $1.6 billion during the third quarter.
- From Oct. 1 to Oct. 23, it repurchased about 1.4 million shares for $1.3 billion.
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In October, the board increased the share-repurchase authorization to $20 billion from $10 billion.
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2026 outlook: GE Vernova raised its 2026 financial guidance and said it expects to end the year with at least 130 gigawatts of gas equipment under contract. The announcement text provided does not include the revised financial targets. The company also expects total backlog to top $200 billion in the fourth quarter.
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Power: Orders rose 178% organically to $21.8 billion, while revenue increased 25% to $6.1 billion. Segment EBITDA margin expanded 8 percentage points, or 8.3 points organically.
- GE Vernova signed contracts for 11 gigawatts of new gas equipment: 8 gigawatts in slot-reservation agreements and 3 gigawatts in orders. It converted 13 gigawatts of existing reservations into orders and shipped 5 gigawatts.
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As a result, gas equipment backlog rose to 64 gigawatts from 53 gigawatts, while slot-reservation agreements declined to 58 gigawatts from 63 gigawatts. Together, backlog and reservations grew from 116 to 122 gigawatts.
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Electrification: Orders declined 9% organically to $5.4 billion, partly because the prior-year quarter included large synchronous-condenser orders. Demand for grid equipment remained strong, with a book-to-bill ratio of about 1.4. Revenue grew 51% to $3.9 billion, or 16% organically, led by Grid Systems Integration and Power Transmission. Segment EBITDA margin expanded 4 percentage points, or 4.7 points organically.
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Equipment backlog reached $42.2 billion, up $15.7 billion, or 60%, from a year earlier. The total included $5 billion from Prolec GE.
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Wind: Orders increased 16% organically to $2.1 billion, primarily on stronger Onshore Wind activity in North America. Revenue rose 4% to $2.7 billion, or 3% organically, as growth in Onshore Wind services and Offshore Wind equipment partly offset lower Onshore Wind equipment revenue. Segment EBITDA margin expanded 4.9 percentage points, or 4.2 points organically.
- The company said it resolved all outstanding litigation related to the Vineyard Wind offshore wind project.
What changes for investors
The larger repurchase authorization gives GE Vernova more capacity to buy back shares; the company had already repurchased shares in both the third quarter and October. Operationally, the rising gas-equipment commitments and expanding total backlog reflect the scale of demand the company is booking, while the distinction between equipment orders and slot reservations remains important: reservations are commitments that can later convert into orders.