• GE Vernova Inc. reported its second quarter 2025 earnings, showing quarterly revenue rising to US$9.11 billion but with net income, basic earnings per share, and diluted earnings per share all decreasing compared to the same period last year; the company also completed a significant share buyback during the quarter and confirmed its acquisition of France-based Alteia, aimed at strengthening its AI capabilities for utility grid review.
• Growing demand from AI data centers and utility grid modernization is helping drive new software and infrastructure opportunities for GE Vernova, reinforcing the company's position as a critical power provider for large technology companies.
• We'll explore how GE Vernova's raised annual forecasts and focus on AI-driven power infrastructure influence its overall investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

GE Vernova Investment Narrative Recap

To be a GE Vernova shareholder, you need to believe that growing global demand for power generation, electrification, and grid modernization, especially from AI data centers, will drive sustained order momentum despite current earnings volatility. The latest quarterly report showcased rising revenue but also highlighted a decline in profitability, suggesting that while the key catalyst of robust infrastructure demand remains in play, project delays or price headwinds continue to pose the biggest risk; this news does not materially shift that balance in the short term. Of the recent company actions, GE Vernova’s acquisition of France-based Alteia to strengthen its AI capabilities for utility grid review is especially relevant. This move highlights the company's emphasis on high-value smart grid and analytics software amid surging demand from data center and technology clients, underlining the continued importance of digital solutions as a driver for recurring, higher-margin revenue streams. But contrasting this optimism, investors should be aware that exposure to large, lumpy infrastructure projects still means revenue and earnings can swing sharply if ...

Read the full narrative on GE Vernova (it's free!)

GE Vernova's outlook anticipates $47.6 billion in revenue and $5.6 billion in earnings by 2028. This scenario assumes 9.2% annual revenue growth and a $4.4 billion increase in earnings from the current $1.2 billion level.

Uncover how GE Vernova's forecasts yield a $631.95 fair value, a 4% downside to its current price.

Exploring Other Perspectives

Fifteen members of the Simply Wall St Community estimate GE Vernova’s fair value between US$296.69 and US$697.12 per share. With grid modernization and software expansion as catalysts, opinions about the path forward can differ, so explore these viewpoints for additional insight.

Explore 15 other fair value estimates on GE Vernova - why the stock might be worth less than half the current price!

Build Your Own GE Vernova Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your GE Vernova research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free GE Vernova research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate GE Vernova's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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