GE Vernova Stock Soars on Strong Q2 Earnings and Raised Outlook
GE Vernova Inc. Surpasses Expectations in Q2 2025
GE Vernova Inc., the power and renewable-energy spinoff from General Electric, reported impressive second-quarter earnings that beat analyst expectations. The company achieved $9.11 billion in revenue, up from $8.20 billion the previous year, and earnings per share of $1.88, exceeding the forecasted $1.50. This strong performance was driven by growth across all business segments — power, wind, and electrification.
Tariff Impact Lower Than Anticipated
The company also lowered its expected impact from U.S. tariffs, previously estimated at $300-$400 million for 2025, now expected at the lower end of that range. This improvement contributed to positive investor sentiment, driving GE Vernova’s stock price to a record high with a 14% intraday jump, one of the largest single-day gains since its IPO in March 2024.
Raised Full-Year Guidance
Reflecting the strong quarter, GE Vernova raised its full-year revenue guidance to the top of the previously expected $36-$37 billion range. It also increased its free cash flow forecast to between $3 billion and $3.5 billion, improving over the earlier $2-$2.5 billion estimate. CEO Scott Strazik highlighted the company’s ongoing momentum in gas power demand, turbine pricing strength, and an order book totaling $12.4 billion with a 1.4 book-to-bill ratio, signaling strong sales growth ahead.
Market Performance and Valuation
Shares of GE Vernova have soared more than 90% in 2025, becoming the second-best performing stock in the S&P 500 this year to date. While the growth outlook is robust, some analysts express caution over valuation, noting the stock trades at nearly 50 times free cash flow at the low end of guidance.
Conclusion
With its strong earnings, tariff outlook improvement, and optimistic full-year projections, GE Vernova demonstrates solid growth potential in the energy and renewable sectors. However, investors should weigh the stock’s valuation against growth prospects carefully.
