GE Vernova shares rise after bullish 2026 revenue outlook, buyback boost

Dec 10 (Reuters) - Shares of GE Vernova GEV.N rose more than 8% in premarket trade on Wednesday after forecasting higher revenue for 2026 and a $4 billion increase in its share buyback program, driven by rising demand for its power equipment from data centers.

Rising power consumption from artificial intelligence and other data-heavy industries is driving sustained growth across its grid and gas-turbine businesses, helping position GE Vernova for longer-term expansion in the United States.

Vernova, which was spun off from General Electric GE.N in March 2024, has climbed more than 370% since the separation. The stock rose 8.2% to $676.46 before the bell on Wednesday.

GE Vernova lifted its share repurchase authorization to $10 billion from $6 billion and doubled its quarterly dividend to 50 cents per share.

Analysts at Jefferies said the forecast was "well above on margins, EBITDA and FCF," noting the company's "uniquely constructive" free cash flow outlook for 2026 and the positive electrification margins of above 20%.

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

It projected free cash flow of $4.5 billion to $5.0 billion next year, topping the $3.5 to $4 billion it expects in 2025.