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Exclusive News GE Vernova's Q4 Was Strong—But the Backlog Number Matters MoreAuthor: Leo Miller. Date Posted: 1/31/2026. 
Key Takeaways - GE Vernova is already up considerably in 2026 after nearly doubling in value last year.
- The company's Q4 report confirmed investor optimism, as the company's orders and backlog soared.
- Despite trading at a high valuation multiple, the company's impressive demand and cash flow projections are hard to ignore.
Power and electrification company GE Vernova (NYSE: GEV) was a standout performer in 2025, delivering a total return of roughly 99%. Shares are already up by nearly 10% in 2026, buoyed by the company's latest earnings report. Jerome Powell says gold is not money. The Fed says inflation is under control and the dollar is strong. But look at what they do. Central banks bought more gold last year than any time since 1967. China dumped $100 billion in U.S. debt, then bought gold. Poland, Hungary, Singapore, and Turkey are all loading up. In 2022, the U.S. froze Russia's money and showed the world that assets can be seized. Now major nations want out. There's only one asset no one can freeze: gold. Get the name and ticker of one stock positioned for this shift. GE Vernova continues to see strong demand in its Power and Electrification segments, driving the company's backlog to record levels. However, with shares trading at a significant premium to the broader market and the industrials sector, the results merit close examination to assess the company's outlook. GEV Beats on Revenue, Sees Large Tax Benefit GE Vernova released its Q4 2025 earnings before the market opened on Jan. 28. It reported sales just under $11 billion, representing growth of 3.8%. Analysts had expected $10.2 billion, which would have implied a 3.4% revenue decline. The company also posted a very large earnings-per-share (EPS) beat, reporting $13.39 versus estimates of $2.99. That outperformance was largely driven by a $2.9 billion tax benefit that boosted net income. Excluding that one-time, non-cash benefit, EPS would have been near or below consensus. Because the tax benefit is non-recurring and not tied to ongoing operations, it is not particularly informative about future performance. That helps explain why, despite the headline EPS beat, GEV shares rose only about 2.7% on the day of the release. Orders, Backlog, Margins and Guidance Continue to Show Strength Underlying operational metrics also impressed. Orders rose to $22.2 billion, up 43% from $14.6 billion in the prior quarter. The company's backlog increased by roughly $15 billion to $150 billion. The Power and Electrification segments largely drove the improvement, with orders up about 50% and 45%, respectively, versus Q3 2025. Backlogs in those segments rose roughly 12% and 15% over the same period. In short, GE Vernova is booking orders much faster than it can fill them—the company's roughly 2x book-to-bill ratio indicates the value of future customer commitments was about double quarterly revenue, providing clear visibility into sales growth ahead. Profitability showed progress as well: adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin increased 40 basis points to 10.7%. For the full year, GEV's free cash flow rose 118% to $3.7 billion. The company raised its guidance to reflect the planned acquisition of GE Prolec, expected to close Feb. 2. It now targets $56 billion in revenue by 2028, up from prior guidance of $52 billion. GEV also expects cumulative free cash flow of more than $24 billion from 2025–2028, signaling substantial cash generation ahead. Updated Targets Imply +15% Upside After Stellar 2025 Wall Street analysts materially upgraded their forecasts after the earnings release. Citigroup raised its price target about 10% to $779, while TD Cowen increased its target nearly 15% to $780. The MarketBeat consensus price target for GE Vernova sits just above $731, implying roughly 2% upside versus the stock's Jan. 29 closing price. However, price targets updated between Jan. 28 and Jan. 29 are noticeably more bullish, averaging around $842—suggesting about 17% potential upside. GEV's forward price-to-earnings ratio (P/E) is about 54x. This is more than double the S&P 500's forward P/E of 22x, and well above the S&P 500 industrial sector's forward P/E of 25x. Despite the premium valuation, robust demand and expected free cash flow growth make GE Vernova look attractive to some investors. Still, given the high multiple, any unexpected setback could put meaningful downward pressure on the stock.
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