• GE Vernova is already up sharply in 2026 after nearly doubling in value last year.

• The company’s fourth-quarter report confirmed investor optimism as orders and the company’s backlog soared.

• Despite trading at a high valuation multiple, it’s hard to ignore the company’s impressive demand and cash flow projections.

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Power and electrification company GE Vernova (NYSE: GEV ) was a standout performer in 2025, with a total return of about 99%.

Shares are already up nearly 10% in 2026, boosted by the company’s latest earnings report.

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GE Vernova continues to see explosive demand in its power and electrification segments, bringing the company’s portfolio to historic levels.

However, with shares trading at a significant premium to the general market and the industrial sector, the company’s results warrant close scrutiny to assess its outlook.

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GE Vernova released its fourth quarter 2025 earnings before the market opened on January 28. It posted sales of just under $11 billion, or 3.8% growth. That figure easily beats estimates of $10.2 billion, implying a 3.4% decline in revenue.

The company also posted a massive increase in earnings per share (EPS), coming in at $13.39. That compares to estimates of $2.99. However, it’s important to note that this was largely due to a $2.9 billion tax benefit the company received, which boosted its net income. Absent this benefit, the company’s EPS would have been near or below estimates.

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This was a one-time, non-cash benefit and is not overly significant to the company’s prospects. That’s partly why, despite the huge EPS increase, GEV stock rose just 2.7% on the day of the release.

GEV’s underlying metrics also impressed. Orders continued to grow at a very rapid pace, rising to $22.2 billion. That was a 43% increase from $14.6 billion just a quarter ago. The company also saw its money portfolio increase by $15 billion to $150 billion.

The Power and Electrification segments largely drove this, with orders rising 50% and 45%, respectively, compared to the third quarter of 2025. Work orders in these segments also rose 12% and 15% during the same period. The moral of the story is that GE Vernova is getting orders much faster than it can fill them. The relationship between the company’s books and invoices may be the best indicator of this dynamic. During the quarter, the value of products or services that customers agreed to receive in the future was twice GEV’s revenue. This provides great visibility into the company’s ability to continue to grow sales.

The company also achieved significant improvements in profitability. In particular, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin increased 40 basis points to 10.7%. Additionally, for the full year, GEV’s free cash flow increased 118% to $3.7 billion.

The company raised its guidance projections to account for its planned acquisition of GE Prolec, which it expects to close on February 2. It is now seen generating $56 billion in revenue by 2028, up from previous estimates of $52 billion. In addition, GEV projects that from 2025 to 2028 it will generate cumulative free cash flow of more than $24 billion, indicating very significant growth going forward.

Wall Street analysts significantly upgraded their forecasts for GE Vernova shares after the company’s earnings report. Citigroup raised its price target by about 10% to $779. TD Cowen also raised its projections, raising its price target by nearly 15% to $780.

The MarketBeat consensus price target on GE Vernova sits just above $731, implying roughly a 2% upside from the stock’s Jan. 29 closing price. However, updated price targets from January 28-29 are significantly more bullish, averaging around $842. That figure suggests the stock could rise 17%.

GEV’s forward price-to-earnings (P/E) ratio is approximately 54 times. That’s more than double the S&P 500’s forward P/E of 22x, and the S&P 500 industry’s forward P/E of 25x. Despite its premium valuation, with robust demand and expected strong free cash flow growth, GE Vernova continues to look reasonably attractive. Still, given GEV’s price, an unexpected bump down the road could put serious downward pressure on the stock.

The article “GE Vernova’s Q4 was strong, but the number of delays matter more” was originally published by MarketBeat.