GE Vernova Q3 Earnings: Gas Turbine Backlog Hits 64 GW on Order Conversions, But Slowing New Signings Weigh on Stock
GE Vernova beat Q3 revenue and EPS estimates, with firm gas turbine backlog rising to 64 GW as reservations converted to orders. Free cash flow guidance was raised to $16-17 billion, but shares fell ~2% amid concerns over slowing new contract signings.
US energy equipment manufacturer GE Vernova reported third-quarter results on October 28, 2026, with revenue climbing 27% year-over-year to $12.6 billion and adjusted earnings per share reaching $4.81, both exceeding analyst expectations. Despite strong performance, the company's stock declined approximately 2% on the day, reflecting market concerns about the sustainability of its growth.
A key shift lies in the quality of its order book. Firm gas turbine backlog—consisting of signed equipment orders—rose to 64 gigawatts by the end of the quarter, up from 53 GW as of June 30. This increase was driven by the conversion of 13 GW of production slot reservations into firm orders, a faster pace than the 10 GW converted in the previous quarter. However, new contract signings slowed significantly, totaling only 11 GW this quarter compared to 20 GW in the second quarter. New slot reservations also dropped to 8 GW from 18 GW.
In terms of profitability, the Power segment stood out, with organic orders surging 178% to $21.8 billion, pushing the segment's EBITDA margin up 800 basis points to 21.4%. Management raised its full-year Power margin outlook to 19%-21%, up from 17%-19%. Conversely, while the Wind segment posted a small profit in Q3, its full-year loss expectation widened to $400 million-$500 million. Electrification orders fell 9% organically, partly due to large synchronous condenser orders in the prior year period.
Regarding capital allocation, the company doubled its share repurchase authorization to $20 billion and raised its full-year 2026 free cash flow guidance to $16 billion-$17 billion. Management expects total backlog to exceed $200 billion in the fourth quarter.