Why Generac Stock Surged Today

The portable generator leader is now an AI play.Shares of Generac (GNRC +17.93%) popped on Wednesday after the energy solutions provider issued an encouraging, artificial intelligence (AI)-powered growth forecast. By the close of trading, Generac's stock price was up more than 17%. Image source: Getty Images. A booming new market Generac's fourth-quarter net sales fell 12% year over year to $1.1 billion. Fewer power outages led to lower shipments of portable generators. The energy technology specialist's residential product sales, in turn, declined by 23% to $572 million. However, Generac's commercial and industrial product revenue jumped 10% to $400 million, driven by higher sales to data center customers. "Our momentum in the data center end market has further accelerated as we continue to develop our position as a key supplier to multiple hyperscale customers, which are expected to add significant volumes to our backlog over the next several quarters," CEO Aaron Jagdfeld said in a press release. ExpandNYSE: GNRCGeneracToday's Change(17.93%) $32.69Current Price$214.99Key Data PointsMarket Cap$11BDay's Range$190.00 - $220.8552wk Range$99.50 - $220.85Volume4.3MAvg Vol1.1MGross Margin37.15% All told, Generac generated adjusted net income of $95 million, or $1.61 per share. That's down from $168 million, or $2.80 per share, in the prior-year quarter. Profits are set to rebound Generac sees full-year sales growth in the mid-teens percent range in 2026. Normalized power outage activity is projected to drive a 10% increase in residential product sales. Management also expects commercial and industrial sales to grow by a solid 30%, as Generac ramps up its data center business. "We are focused on dramatically increasing our capacity and capabilities for large megawatt generators, including the purchase of an additional manufacturing facility in Wisconsin in the fourth quarter and ongoing investments in our existing facilities around the world," Jagdfeld said. "These opportunities and investments put us well on our way to doubling our C&I product sales in the years ahead."Read NextAug 1, 2025 •By Eric VolkmanWhy Generac Stock Was Soaring This WeekJul 30, 2025 •By Billy DubersteinWhy Generac Rallied TodayNov 1, 2023 •By Lou WhitemanWhy Generac Stock Is Charging Higher TodayAug 2, 2023 •By Beth McKennaGenerac Stock Powers Down 24% on Lowered 2023 GuidanceAug 2, 2023 •By Jeremy BowmanWhy Generac Stock Tumbled TodayJun 27, 2023 •By Eric VolkmanWhy Generac Holdings Stock Triumphed on TuesdayAbout the AuthorJoe Tenebruso is a contributing Motley Fool stock market analyst. Previously, Joe was an investment analyst for Stock Advisor, Income Investor, and Crypto Society, as well as several other market-beating investing services. He graduated summa cum laude from Rutgers University with a Bachelor of Science in Finance.tmfguardianX@Tier1InvestorStocks MentionedGeneracNYSE: GNRC$214.99 (+17.93%) $+32.69*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.