1. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 115
Topping our list of Energy Stocks that Beat Earnings Estimates is GE Vernova Inc. (NYSE:GEV). The company engages in the provision of various products and services that generate, transfer, orchestrate, convert, and store electricity in the United States, Europe, Asia, the Middle East, and Africa.
GE Vernova Inc. (NYSE:GEV) soared to an all-time high after exceeding forecasts in its Q1 2026 earnings on April 22. The sharp rise in power demand has boosted the orders for gas turbines and grid equipment, strengthening the company’s core businesses. GEV delivered an adjusted EPS of $2.01 during the quarter against estimates of $1.67, while its revenue also surged by more than 16% YoY to over $9.3 billion and beat forecasts by $90 million.
GE Vernova Inc. (NYSE:GEV) grew its adjusted EBITDA by 87% YoY to $896 million, while its net profit also skyrocketed to $4.75 billion, up from $264 million in the same period last year. Notably, the company’s free cash flow of $4.8 billion during the quarter was more than what it generated in the whole of 2025.
GE Vernova Inc. (NYSE:GEV) added $13 billion to its backlog in Q1, taking the total to $163 billion. The company now expects to reach its $200 billion backlog goal in 2027, versus its previous forecast of 2028.
Given the strong start to the year, GE Vernova Inc. (NYSE:GEV) raised its FY 2026 revenue guidance to $44.5-$45.5 billion, up from $44-$45 billion previously. Moreover, the company boosted its free cash flow target for the year to between $6.5 billion and $7.5 billion, up from its previous forecast of $5 billion to $5.5 billion.
Fred Alger Management, an investment management company, stated the following regarding GE Vernova Inc. (NYSE:GEV) in its Q1 2026 investor letter:
“GE Vernova Inc. (NYSE:GEV) is a purpose-built global energy company operating through three segments — Power, Wind, and Electrification — that provide technologies to generate, transfer, convert, and store electricity. The company supports approximately a quarter of the world’s electricity generation through a massive installed base of gas and wind turbines, and its record backlog and high-margin services business provide significant visibility into long-term free cash flow potential through the end of the decade. We believe GE Vernova is uniquely positioned to benefit from the global energy transition and rising power demand driven by AI data centers. During the quarter, shares contributed positively to performance supported by a strong fiscal fourth-quarter earnings report that highlighted a significant organic increase in orders, led by a tripling of Gas Power equipment orders and record bookings in the Electrification segment.”
While we acknowledge the potential of GEV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GEV and that has 100x upside potential, check out our report about the cheapest AI stock.
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