Generac (NYSE:GNRC) Issues Quarterly Earnings Results

Generac (NYSE:GNRC) announced its quarterly earnings results on Wednesday. The technology company reported $2.54 earnings per share for the quarter, topping the consensus estimate of $2.38 by $0.16, FiscalAI reports. The company had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.32 billion. Generac’s revenue for the quarter was up 16.2% on a year-over-year basis. During the same period in the prior year, the business posted $1.83 earnings per share.

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

• Data center momentum accelerated sharply: Generac signed a long-term Amazon supply agreement with approximately $2.4 billion of deliveries expected in 2027–2028, lifting data center backlog to about $4.5 billion. Management now expects data center revenue to exceed $2 billion in 2027.
• Third-quarter net sales reached a record $1.29 billion, up 16%, while adjusted EBITDA increased 33% to $256 million. The company raised its full-year 2026 adjusted EBITDA margin outlook to 20.5%–21% and expects approximately $450 million of free cash flow.
• The residential segment returned to strong growth, with sales up 9% and home standby generator sales increasing at a mid-teens rate as power outages normalized. Portable generator demand also strengthened, while the dealer network expanded to nearly 9,900 locations.
• Generac is ramping production at its Sussex facility, expanding internationally, and bringing a new Belvidere packaging facility online in early 2027, with a goal of nearly tripling global large-megawatt capacity. However, supply chains remain tight—particularly for high-horsepower engines—and fourth-quarter consolidated gross margins are expected to decline to 37%–38% because of data center sales mix and inflationary pressures.

Generac Price Performance

Shares of GNRC stock traded up $0.02 during trading hours on Wednesday, reaching $193.73. The company had a trading volume of 1,392,849 shares, compared to its average volume of 1,087,206. The stock has a fifty day moving average of $199.71 and a 200-day moving average of $216.78. Generac has a 12-month low of $134.80 and a 12-month high of $296.44.

Insider Activity at Generac

In other Generac news, insider Norman Taffe sold 150 shares of the business’s stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $220.00, for a total transaction of $33,000.00. Following the transaction, the insider owned 10,976 shares of the company’s stock, valued at approximately $2,414,720. The trade was a 1.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kyle Raabe sold 603 shares of the company’s stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $212.57, for a total value of $128,179.71. Following the completion of the sale, the insider owned 9,966 shares of the company’s stock, valued at approximately $2,118,472.62. The trade was a 5.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 18,442 shares of company stock valued at $3,656,537. 2.40% of the stock is currently owned by insiders.

Generac News Summary

Here are the key news stories impacting Generac this week:

• Positive Sentiment: Adjusted earnings exceeded expectations. Generac reported third-quarter earnings of $2.54 per share, up from $1.83 a year earlier and above the $2.38 analyst consensus. Generac Holdings Q3 Earnings Surpass Estimates
• Positive Sentiment: Commercial and industrial momentum strengthened. Generac said demand from the commercial and industrial segment drove a significant increase in backlog. Reports also highlighted a roughly $4.5 billion AI-related power backlog, including an Amazon deal, supporting the long-term data-center growth story. Generac Q3 2026 Earnings
• Positive Sentiment: Residential demand improved. The company said its residential segment returned to strong growth, benefiting from lower power-quality trends and ongoing demand for backup power. Generac Reports Third Quarter 2026 Results
• Neutral Sentiment: Full-year 2026 earnings guidance was maintained. Holding the outlook steady provides stability but did not give investors an upward revision that could have supported the stock. Generac Maintains Full-Year 2026 Earnings Guidance
• Negative Sentiment: Revenue missed estimates. Third-quarter sales rose 16.2% year over year to $1.29 billion, but fell short of the $1.32 billion consensus forecast. The miss, combined with prior concerns about residential weakness and margin pressure, likely outweighed the EPS beat. Generac Misses Q3 2026 Sales Expectations

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. Raymond James Financial set a $286.00 target price on Generac in a research note on Thursday, September 17th. UBS Group reaffirmed a “buy” rating on shares of Generac in a research note on Friday, September 25th. Citigroup cut their target price on shares of Generac from $300.00 to $232.00 and set a “neutral” rating for the company in a report on Wednesday, September 30th. Robert W. Baird set a $305.00 target price on shares of Generac in a research note on Thursday, July 30th. Finally, Cantor Fitzgerald lowered their price target on shares of Generac from $333.00 to $297.00 and set an “overweight” rating on the stock in a report on Monday, October 5th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $289.45.

About Generac

Generac Holdings Inc is a technology and energy solutions company that designs and manufactures power generation equipment and other energy-related products. Its offerings include standby and portable generators, commercial and industrial power systems, energy storage solutions, and products that help customers manage and monitor energy use.

The company serves residential, commercial, industrial, and utility customers. Its products are used for backup power, prime power, and distributed energy applications across homes, businesses, data centers, healthcare facilities, construction sites, and other critical operations.