GE Vernova forecasts higher 2026 revenue, boosts share buyback

Dec 9 (Reuters) - GE Vernova GEV.N said on Tuesday it expects higher revenue in 2026, compared with its forecast for 2025, on the back of strong power demand and boosted its share buyback plan by $4 billion.

The company's shares were up 6.7% at $667.37 in after-market trading.

The turbine maker raised its share repurchase authorization to $10 billion from $6 billion and doubled its quarterly dividend to 50 cents per share.

A surge in power consumption from data centers dedicated to artificial intelligence and cryptocurrency has raised demand for grid equipment and steam and gas turbines, helping companies such as GE Vernova.

In October, GE Vernova said it would acquire the remaining 50% stake in transformer manufacturer Prolec GE for $5.28 billion, strengthening its North American grid equipment business.

The company now expects 16% to 18% organic revenue growth in its power segment, and 20% growth in its electrification segment in 2026.

It also forecast free cash flow between $4.5 billion and $5.0 billion for 2026, compared with expectations between $3.5 billion and $4.0 billion for 2025.

The company forecast revenue to be between $41 billion and $42 billion for the next year, compared with expectations of between $36 billion and $37 billion for this year.

Analysts on average were expecting revenue of $41.4 billion for 2026, according to data compiled by LSEG.