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GE Vernova (GEV) is hitting fresh record highs after the company reaffirmed its FY25 revenue outlook, issued in-line FY26 guidance, provided long-term financial projections, and significantly boosted capital returns with a doubled quarterly dividend to $0.50/share and a $10 bln buyback authorization. The company sees its equipment and services backlog reaching $200 bln by 2028, fueled by surging U.S. electricity demand from data centers, AI compute growth, and widescale electrification across industry and transportation.

• Backlog growth is anchored by grid modernization, nuclear and renewables expansion, and gas capacity to balance intermittent renewable output.
• Rising free cash flow expectations are supporting a shareholder-friendly capital allocation framework, reflected in the doubled dividend and $10 bln repurchase authorization.
• Heavy investment in AI, robotics, and automation aims to improve factory throughput and reduce cost intensity, positioning margins structurally higher over time.
• GEV expects profitable Gas Power services to ramp meaningfully in the 2030s, providing a recurring revenue foundation less sensitive to equipment cycles.
• Rewinding to Q3 (reported on Oct. 22), EPS missed and free cash flow declined due to higher capex, but the 55% surge in total orders and electrification growth of over 100% underscored powerful end-market demand. 
• GEV's long-term guidance range suggests confidence that it can compound earnings by servicing the massive wave of electricity demand growth tied to AI and industrial electrification.

Briefing.com Analyst Insight:

GEV is looking like one of the most compelling large-cap energy transition plays thanks to accelerating secular demand for electricity, a rapidly swelling backlog, and a clearer roadmap to recurring service revenue later in the decade. The company’s long-term targets lean bullish, but they’re grounded by hard data -- hyperscale data centers, EV charging infrastructure, and grid upgrades are not hypothetical demand drivers, they are already materializing in purchase orders today. The valuation is less forgiving after today’s breakout to all-time highs (1-year forward P/E of 50x), yet investors appear comfortable paying a premium for backlog visibility, cash flow scaling, and a sharply more shareholder-friendly capital return program. Execution will matter, especially around cost efficiency, capex discipline, and scaling automation, but the multiyear runway looks real. If GEV maintains order momentum while turning Q3’s investment spending into higher free cash flow, the stock could have even more room to run.