GE Vernova Inc. (NYSE: GEV) wrapped up the Independence Day holiday week with a 6.5% gain over five sessions, bringing its year-to-date advance to 70.31%. However, the stock retreated from Tuesday's highs, shedding 5.3% in the final two trading days before the market close on Thursday, July 2. U.S. equity markets were closed on Friday, July 3, in observance of Independence Day.
The pullback has tightened the gap to Bernstein's bullish price target. Analyst Sunaina Ocalan initiated coverage on GE Vernova with an Outperform rating and a $1,206 target, describing the company as poised to become "an end-to-end power and electrification equipment and services provider." At Tuesday's close, shares were just 2.7% below that target, but by Thursday's close, the cushion had expanded to 8.3%.
Thursday's session saw a divergence between GE Vernova and the broader utility sector. The Utilities Select Sector SPDR ETF (NYSEARCA: XLU) rose 2.21%, while GEV slipped 1.87%. Other power-infrastructure stocks also declined, with Eaton Corporation (NYSE: ETN) falling 3.33%, Vertiv Holdings (NYSE: VRT) down 3.50%, and Quanta Services (NYSE: PWR) dropping 3.36%. In contrast, the Industrial Select Sector SPDR ETF (NYSEARCA: XLI) edged up 0.30%.
Investor focus remains on the company's burgeoning backlog. GE Vernova reported first-quarter orders of $18.3 billion, up 71% organically, on revenue of $9.3 billion. The backlog expanded by $13.0 billion quarter-over-quarter, including $5 billion from the Prolec GE acquisition. Gas Power equipment backlog and slot reservations climbed to 100 gigawatts from 83 gigawatts, with a target of at least 110 GW by the end of 2026.
CEO Scott Strazik highlighted accelerating demand for power and electrification, while CFO Ken Parks noted the backlog had reached $163 billion, including Prolec GE. The company also raised its 2026 guidance for revenue, adjusted EBITDA margin, and free cash flow. Bernstein's Ocalan estimated that data center-related orders account for roughly 20% to 25% of the backlog, and management expressed confidence that state-level opposition to new data center projects poses no risk to fulfillment.
With a market capitalization of approximately $300 billion and a price-to-earnings ratio of 32.38, GE Vernova's valuation reflects high expectations. The key question now is whether the record order flow can convert into revenue quickly enough, and whether non-data-center business remains robust. The company's Q2 2026 earnings webcast is scheduled for July 22, from 7:30 a.m. to 8:30 a.m. EDT.
