How Should You Play GEV Stock Ahead of Q3 Earnings Release?

GE Vernova Inc. GEV is expected to report third-quarter 2025 results on Oct. 22, before market open. 

The Zacks Consensus Estimate for earnings is pegged at $1.78 per share, indicating year-over-year growth of 408.6%. The Zacks Consensus Estimate for revenues is pinned at $9.18 billion, indicating growth of 3% from the year-ago reported figure.

GEV’s Earnings Surprise History

The company beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 38.03%.

What Our Quantitative Model Predicts

Our proven model does not predict an earnings beat for GE Vernova this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is +4.58%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, GEV carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks Worth a Look

Some stocks in the same industry that have the combination of factors indicating an earnings beat are Bloom Energy BE and Crescent Energy Company CRGY. BE and CRGY have an Earnings ESP of +9.68% and +13.85%, respectively. BE sports a Zacks Rank #1 and CRGY holds a Zacks Rank #3 at present.

Factors That Might Have Impacted GEV’s Q3 Performance

GE Vernova launched PlanOS, an advanced utility planning software, in September 2025. This positions the company to strengthen its foothold in the digital energy space. PlanOS allows utilities to more effectively predict power flows, evaluate resource availability, and maximize capacity growth by combining several simulation and planning engines into a single platform.  This innovation helps GE Vernova diversify beyond hardware into high-margin and recurring revenue streams and is expected to boost its quarterly results.

Solid deliveries of GE Vernova’s gas power equipment must have boosted the top-line performance of its Power business segment in the third quarter.

In September 2025, GE Vernova completed the sale of an onshore blades factory in Goleniów near Szczecin, Poland. The company is anticipated to have streamlined operations and reinvested funds into key EU manufacturing facilities that produce GE Vernova wind products, in order to better serve its customer base in the region.

In July 2025, GE Vernova announced that the Hsinta Power Station, powered by GE Vernova’s 7HA.03 combined-cycle equipment, had begun operations and officially started dispatching up to 1.3 gigawatts (GW) of electricity to Taiwan’s energy grid. This is likely to have enhanced GEV’s earnings in the to-be-reported quarter. 

The Zacks Consensus Estimate for Power-Sales in units-Gas Turbines is pegged at 23, up from the year-ago quarter’s registered figure of 18. The Zacks Consensus Estimate for Power-Gas Turbines is pinned at 3.19 GW, down from year-ago quarter’s registered figure of 5.1 GW.

GEV Stock Price Performance

In the past three months, the stock has returned 5.3% compared with the industry’s growth of 18.3%.

GEV Stock Trading at a Premium

GE Vernova is currently trading at a premium compared to its industry on a forward 12-month P/E basis.

GEV Stock Returns Lower Than Its Sector

The company’s trailing 12-month return on equity of 13.23% is lower than the sector average of 15.07%. Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.

Investment Thesis

With its electrification and gas turbine technologies, GE Vernova is perfectly positioned to take advantage of the enormous need for reliable electricity and grid infrastructure that is being created by the rapid rise of AI and data centers.

GE Vernova's electrification division is a major growth driver due to global initiatives to update and extend power grids, especially with the incorporation of renewables. GE Vernova has plans to invest $9 billion in global capital expenditures and research and development through 2028 to meet future electricity demands. To facilitate the global energy transformation, these investments are focused on expanding GEV’s gas, nuclear, hydroelectric and wind power generation portfolios.

However, GE Vernova is currently facing challenges from global supply-chain disruptions, which might impact its operations and profitability. The company depends on a vast and complex network — purchasing about $20 billion worth of materials and components from suppliers across more than 100 countries — to build its gas turbines, wind turbines and grid systems. Shortages of raw materials, shipping delays, and logistical bottlenecks have slowed production and increased input costs. This could negatively impact its financial performance and profit margins.

End Note

GE Vernova benefits from its diversified business and has the ability to expand even further and boost its operations. However, it faces risks related to supply-chain disruptions. Disruptions in the availability of raw materials could adversely impact its financial performance. 

Considering its price underperformance, low ROE, and premium valuation, it is advisable for investors to avoid this stock at present.

 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research