Why GE Vernova Investors Should Ignore the Wind

Why GE Vernova Investors Should Ignore the Wind

Catie Hogan, The Motley Fool

Sun, July 26, 2026 at 4:50 PM GMT+3 2 min read

• GEV -1.79%
• NVDA -4.99%

Shares of GE Vernova (NYSE: GEV) fell roughly 6% on Wednesday after the company released its second-quarter earnings. While earnings per share missed Wall Street's expectations and the wind segment dragged down performance, investors are overlooking results that contained significant positive news.

Revenue grew 22% while orders skyrocketed 88% to $24.2 billion. As a result, GE Vernova's backlog reached a record $176 billion. Free cash flow also increased to $5.1 billion. The company's management raised its full-year guidance on both revenue and free cash flow.

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The wind segment's revenue decreased 10%, with orders falling another 40%. Wind is expected to lose GE Vernova about $400 million this year. Weak demand, rising expenses, and tariffs are the main culprits.

While the wind story isn't good, it's an increasingly irrelevant piece of a much brighter narrative for GE Vernova. The company's power and electrification divisions are rapidly expanding and are the main drivers of revenue and future growth. Investors selling GE Vernova because of a struggling wind segment are missing a bigger opportunity. Growth in AI-related infrastructure needs will continue for several more years, and GE Vernova is well-positioned to capture much of it.

If anything, this slight price dip is an opportunity for investors to buy the stock for the long term. GE Vernova is currently trading well off its 52-week high of $1,195 at about $985 as of July 22. The stock is still up over 50% on the year.

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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Vernova. The Motley Fool has a disclosure policy.

Why GE Vernova Investors Should Ignore the Wind was originally published by The Motley Fool