Guidance hike helps GE Vernova to best day ever
Markets are forward-looking!
GE Vernova posted its best ever day in the markets after a strong earnings report and an upgrade of its guidance for full-year 2025 sales, operating margin, and cash flow underscored its view that the AI investment supercycle has room to run.
The stock closed up roughly 14.6% on Wednesday, its best performance since it was spun off — along with GE Aerospace and GE HealthCare — from the old-line industrial conglomerate in spring 2024.
During the day, GE Vernova hit a new all-time high of $633.72 and ended with a gain of nearly 0.8% as the third-largest contributor to the S&P 500, which also hit new records.
As we reported earlier, the numbers — both the top and bottom lines — were strong in its Q2 report posted before the open. But subsequent notes from analysts highlighted excitement about the guidance that GE Vernova, which makes capital equipment for the power generation industry, such as turbines for power plants, offered to the Street.
“Net revenues are trending towards the high end of the $36-37 billion prior range,” Barclays analysts wrote.
And Jefferies analysts wrote that “robust” free cash flow guidance was “the primary positive surprise” in the report: GE Vernova now expects between $3 billion and $3.5 billion versus the $2 billion and $2.5 billion it projected last quarter.
Such upgrades to guidance suggest that the company is willing to go on record and align its financial outlook with CEO Scott Strazik’s assertion that the US is “at the beginning of an investment supercycle.”
Strazik added, “Our near-term results are improving, but more importantly, our long-term potential is accelerating faster.”
