GE Vernova is ripping to the upside following a monster quarter, thanks to the insatiable demand for energy fueling the AI boom. Revenue for the three months ending March 31 increased about 16% year over year to $9.34 billion, topping expectations of $9.22 billion, according to LSEG. Orders increased 71% organically to $18.3 billion, driven by growth across all segments. As a reminder, analysts focus on orders to gauge demand rather than sales, which may reflect past order fulfillment. Earnings per share (EPS) of $17.44; however, this isn’t comparable to the $1.86 estimate, given that it includes $4.5 billion in pre-tax M & A net gains, primarily from Prolec GE. Accounting for this, LSEG pegs the adjusted EPS result at about $2.08, still better than expected. GEV 1Y mountain GEV 1-year return Shares of GE Vernova soared more than 12% on the print, hitting an all-time intraday high of $1,142 shortly after the opening bell. In recognition of Wednesday’s rally, we’re raising our price target to $1,300 from $1,000. As Jim Cramer put it during the Club’s Morning Meeting, “This one may be one for the ages.” We’re keeping our buy-equivalent 1 rating on the stock. Bottom line The word “insatiable” might be insufficient to describe the type of demand GE Vernova is seeing for its natural gas turbines and other products used to power data centers. While the company’s wind business remains under pressure, sales of gas and electrification solutions were off the charts, leading management to increase its outlook for the year and beyond. This is not surprising, considering Nvidia CEO Jensen Huang’s five-layer cake of AI starts with energy as the base and builds up from there to chips, infrastructure, models, and applications. So, all AI roads lead back to energy demand, and that puts GE Vernova on the ground floor of the Fourth Industrial Revolution. Put another way, whenever you hear about a new power commitment or data center project, understand that the required gigawatts will likely come from GE Vernova. Companywide, GE Vernova’s adjusted EBITDA margin also came in more than a full percentage point ahead of expectations. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. GE Vernova Why we own it : The company has several powerful secular tailwinds at its back, including the need for more reliable power and electrification, especially as AI drives up demand for energy-intensive data centers. GE Vernova may also benefit from deals as countries work with the Trump administration to reduce bilateral trade deficits. Competitors : Siemens Energy , MHI Most recent buy : Oct. 7, 2025 Initiated : May 13, 2025 In addition to strong margins, sales, and earnings, GE Vernova delivered robust $13 billion in order growth, swelling its backlog to $163 billion. Management now expects to achieve a backlog valued at $200 billion by 2027, a year ahead of schedule. In gas power, the backlog stands at 100 gigawatts, up from 83 gigawatts in the…
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