Shares of GE Vernova surged more than 5% on Wednesday after CEO Scott Strazik provided an optimistic outlook at the Morgan Stanley Laguna Conference. Strazik announced that the company now expects to surpass its $200 billion services backlog target in early 2027, an acceleration from previous forecasts.
The positive revision is attributed to strong global demand for electricity and significant orders in both the company's power and electrification segments. In particular, data center orders have been a major growth driver, exceeding $5 billion in the first half of 2026 alone. The company ended the second quarter with a backlog of $176 billion.
This announcement signals strong confidence in future revenue and execution since GE Vernova's spin-off from General Electric. Strazik noted that demand has not shown signs of peaking and described the market as “stronger for longer.” The update was well-received by investors, boosting the company's shares amid a mixed broader market.