Generac (NYSE:GNRC) Releases Earnings Results, Beats Expectations By $0.90 EPS

Generac (NYSE:GNRC) announced its quarterly earnings data on Wednesday. The technology company reported $2.91 earnings per share for the quarter, beating analysts’ consensus estimates of $2.01 by $0.90, FiscalAI reports. The business had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.18 billion. Generac had a net margin of 4.37% and a return on equity of 15.45%. The company’s revenue for the quarter was up 10.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.65 EPS.

Here are the key takeaways from Generac’s conference call:

• Commercial and industrial sales rose 29% year over year, driven by data center shipments, rental products, and telecom demand. Generac raised its full-year C&I growth outlook to the low-30% range from the previously expected mid-to-high 20% range.
• Data center momentum accelerated, with more than $100 million of quarterly revenue, a $1.6 billion backlog, and roughly $1 billion of new orders in the past 90 days. The company expects nearly $450 million of data center revenue in 2026 and said a second hyperscale agreement could be at least as large as the first customer’s approximately $700 million commitment for 2027 deliveries.
• Generac is accelerating capacity investments for large megawatt generators, including bringing its Sussex, Wisconsin facility online by the end of the third quarter and expanding packaging capacity in Illinois. Management said it has a path to roughly triple assembly capacity from its original $1.25 billion year-end 2026 target over the next 12 to 18 months.
• Consolidated adjusted EBITDA margin expanded to 24.8%, helped substantially by approximately $71 million in tariff refunds; margins increased about one percentage point excluding that benefit. Full-year adjusted EBITDA margin guidance remains 18.5%–19.5% excluding tariff refunds, or 20%–21% including them.
• Residential sales declined 2% in the quarter, pressured by weak outage activity, lower portable generator shipments, and softness in residential energy storage following the end of a Puerto Rico program. Generac modestly reduced its full-year residential growth outlook to the high-single-digit range, citing continued outage weakness and affordability concerns.

Generac Price Performance

NYSE GNRC traded down $2.54 on Wednesday, reaching $193.06. The company’s stock had a trading volume of 1,520,056 shares, compared to its average volume of 1,026,367. Generac has a twelve month low of $134.80 and a twelve month high of $296.44. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.99 and a current ratio of 2.03. The firm’s 50 day moving average is $254.18 and its two-hundred day moving average is $223.96. The stock has a market cap of $11.37 billion, a PE ratio of 60.85, a PEG ratio of 1.85 and a beta of 1.89.

Analyst Ratings Changes

Several equities research analysts have weighed in on GNRC shares. Wells Fargo & Company increased their target price on Generac from $238.00 to $280.00 and gave the stock an “overweight” rating in a research report on Friday, May 1st. TD Cowen reissued a “buy” rating on shares of Generac in a research note on Monday, July 20th. Needham & Company LLC restated a “buy” rating on shares of Generac in a research note on Tuesday, June 2nd. Weiss Ratings downgraded Generac from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, July 14th. Finally, Robert W. Baird set a $311.00 target price on Generac in a research note on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $286.44.

Key Headlines Impacting Generac

Here are the key news stories impacting Generac this week:

• Positive Sentiment: Q2 earnings substantially exceeded expectations. Generac reported adjusted earnings of $2.91 per share, up from $1.65 a year earlier and ahead of consensus estimates near $1.95–$2.01. Net income reportedly rose to $143 million, supported by operating leverage. Generac Reports Second Quarter 2026 Results
• Positive Sentiment: C&I and data-center demand are accelerating. Management highlighted a rapidly expanding data-center backlog, which provides visibility into significant 2027 growth. The company raised C&I growth guidance to the low-30% range, while tariff refunds and higher volume are expected to support a 20%–21% adjusted EBITDA margin. Major Infrastructure CEO Says Data Center Demand Is Unlike Anything We’ve Ever Seen Before
• Neutral Sentiment: Full-year revenue guidance was reaffirmed. The unchanged 2026 sales outlook provides stability, though investors may have wanted an upward revision after the earnings beat and strong data-center commentary. Generac Tops Q2 Earnings Estimates, Reaffirms 2026 Revenue Outlook
• Negative Sentiment: Revenue modestly missed expectations. Quarterly sales increased 10.3% year over year to approximately $1.17 billion, but fell short of the roughly $1.18 billion consensus estimate. That top-line miss may be offsetting the EPS beat and contributing to the stock’s decline. Generac Misses Q2 CY2026 Sales Expectations

Insider Activity at Generac

In related news, insider Norman P. Taffe sold 550 shares of the business’s stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $256.00, for a total value of $140,800.00. Following the sale, the insider directly owned 15,808 shares in the company, valued at $4,046,848. The trade was a 3.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Aaron Jagdfeld sold 5,000 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $272.18, for a total transaction of $1,360,900.00. Following the sale, the chief executive officer directly owned 564,528 shares of the company’s stock, valued at approximately $153,653,231.04. This represents a 0.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 6,100 shares of company stock worth $1,651,443 in the last ninety days. Corporate insiders own 2.40% of the company’s stock.

Institutional Investors Weigh In On Generac

A number of institutional investors and hedge funds have recently modified their holdings of the stock. MUFG Securities EMEA plc acquired a new position in shares of Generac in the 2nd quarter valued at $25,000. Caitong International Asset Management Co. Ltd acquired a new stake in Generac during the 3rd quarter worth about $26,000. Quarry LP lifted its stake in Generac by 66.2% during the third quarter. Quarry LP now owns 399 shares of the technology company’s stock valued at $67,000 after buying an additional 159 shares in the last quarter. Zions Bancorporation National Association UT boosted its holdings in shares of Generac by 30.4% in the fourth quarter. Zions Bancorporation National Association UT now owns 536 shares of the technology company’s stock worth $73,000 after buying an additional 125 shares during the period. Finally, Gen Wealth Partners Inc boosted its holdings in shares of Generac by 8.7% in the fourth quarter. Gen Wealth Partners Inc now owns 675 shares of the technology company’s stock worth $92,000 after buying an additional 54 shares during the period. 84.04% of the stock is owned by institutional investors and hedge funds.

Generac Company Profile

Generac Holdings Inc (NYSE: GNRC) is a leading manufacturer of backup power generation products for residential, commercial and industrial applications. The company offers a comprehensive portfolio of standby and portable generators, transfer switches and power management systems designed to provide reliable electricity during power outages and other critical situations. With an emphasis on innovation, Generac has expanded its offerings to include clean energy technologies such as battery storage and integrated solar-plus-storage systems.

Generac’s product lineup addresses a broad range of customer needs.