GE Vernova Stock Surges on Big Guidance Raise, Doubling of Dividend, and Increased Stock Buyback Authorization

By Beth McKenna – Dec 10, 2025 at 5:00AMKey PointsGE Vernova increased its 2025 free cash flow guidance.The company significantly raised its longer-term guidance for revenue, a key profit metric, and free cash flow.It raised its quarterly cash dividend to $0.50 per share, double its current dividend, and increased its share buyback authorization to $10 billion, from $6 billion. These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: GEVGe VernovaMarket Cap$170BToday's Changeangle-down(0.55%) $3.40Current Price$625.30Price as of December 9, 2025 at 4:00 PM ETShares of the energy giant, which is involved in supplying equipment needed for AI-driven electric grid upgrades, rose 5.9% in Tuesday's after-hours trading, which should bode well for its price performance on Wednesday.GE Vernova (GEV +0.55%) stock surged 5.9% in Tuesday's after-hours trading following the global energy-focused company's announcement that it was increasing its 2025 free cash flow outlook, significantly raising its longer-term guidance, doubling its dividend, and increasing its share buyback authorization. Yes, that's a lot of good news at once. Before we move on, it's worth noting that for those unfamiliar with the company, it operates in three segments: power, wind, and electrification. GE Vernova was formed in April 2024 when General Electric completed its split into three separate companies. The electric grid in the U.S. (and other countries) needs major upgrades and expansion to support the soaring energy demands from artificial intelligence (AI). Guidance for 2025, 2026, and "by 2028" For 2025, GE Vernova reaffirmed its revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin guidance, and raised its free cash flow outlook. It also issued 2026 guidance. Lastly, it raised its outlook for "by 2028." Investors were likely particularly pleased with the increase in longer-term guidance. CFO Ken Parks said that the company's "large and growing backlog, with healthy margins from services and better equipment pricing, is furthering our momentum into 2026 and driving our increased outlook by 2028." Metric2025 Guidance2026 Guidance Outlook by 2028Revenue$36 billion to $37 billion$41 billion to $42 billion$52 billion; low double-digit percentage organic growth (Up from $45 billion; high single-digit percentage organic growth)Adjusted EBITDA margin8% to 9%11% to 13%20% (Up from 14%)Free Cash Flow$3.5 billion to $4 billion (up from $3.0 billion to $3.5 billion)$4.5 billion to $5.0 billion $22 billion-plus cumulative 2025 to 2028 (Up from $14 billion-plus) Data source: GE Vernova. Organic growth excludes contributions from acquisitions made within the past year. Investors should note that all outlooks exclude the impact of GE Vernova's acquisition of the remaining 50% stake of Prolec GE, which is expected to close by mid-2026, subject to customary regulatory approvals. This $5.3 billion deal was announced in October.Advertisement Prolec GE, currently a 50%-50% joint venture between GE Vernova and Mexico's Xignux, is a leading supplier of power transformers for electric grids. This was a smart move by GE Vernova, as the acquisition is expected to be accretive to its earnings and accelerate the growth of its electrification segment, which is already its fastest-growing segment. This is an attractive market, with growth primarily driven by the need for grid upgrades to support the surge in power requirements of artificial intelligence (AI) data centers. ExpandNYSE: GEVGe VernovaToday's Change(0.55%) $3.40Current Price$625.30Key Data PointsMarket Cap$170BDay's Range$613.20 - $636.8852wk Range$252.25 - $677.29Volume7.4KAvg Vol3MGross Margin19.66%Dividend Yield0.12% Dividend doubling GE Vernova board of directors declared a $0.50 per share quarterly cash dividend, which is double its current dividend of $0.25. The new dividend is payable on Feb. 2, 2026, to shareholders of record as of Jan. 5, 2026. At GE Vernova stock's closing price on Tuesday, its dividend yield was 0.16%. Increase in share buyback authorization The company's board of directors also approved an increase in share repurchase authorization to $10 billion, up from the prior authorization of $6 billion. GE Vernova has spent $3.3 billion of the authorization as of Dec. 3. So, it now has $6.7 billion left on the authorization. CFO Parks commented that the company is "committed to maintaining an investment grade balance sheet as we make organic investments, pursue targeted M&A [mergers and acquisitions], and return at least one third of cash generation to shareholders through our higher dividend and increased share repurchase program." A very attractive stock GE Vernova stock was already attractive, as I outlined in my October article, "2 Electric Grid Stocks to Buy as Soaring Artificial Intelligence (AI) Demand Drives Surging Electricity Demand." (The other stock featured in this article is Quanta Services.) Tuesday's news makes GE Vernova stock even more attractive.About the AuthorBeth McKenna is a contributing writer for The Motley Fool covering stocks and ETFs with a focus on artificial intelligence and emerging technologies. Beth previously worked in risk management for major property and casualty insurers. She holds a Bachelor of Arts degree in Engineering from Lafayette College and completed graduate-level coursework in business at Rutgers University.TMFMcKennaRead NextDec 7, 2025 •By Lee Samaha2 Things Every GE Vernova Investor Needs to KnowDec 2, 2025 •By Eric VolkmanWhy GE Venova Stock Topped the Market on TuesdayNov 19, 2025 •By Lee SamahaWhy Shares in GE Vernova Popped TodayOct 15, 2025 •By Eric VolkmanWhy GE Vernova Stock Wilted on WednesdayOct 13, 2025 •By Eric VolkmanWhy GE Venova Stock Topped the Market TodaySep 10, 2025 •By Rich SmithWhy GE Vernova Stock Popped Today