Generac (NYSE:GNRC) Posts Earnings Results, Beats Estimates By $0.90 EPS

Generac (NYSE:GNRC) issued its quarterly earnings results on Wednesday. The technology company reported $2.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.01 by $0.90, FiscalAI reports. Generac had a net margin of 5.82% and a return on equity of 17.83%. The business had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.18 billion. During the same quarter in the prior year, the business posted $1.65 EPS. Generac’s revenue for the quarter was up 10.3% compared to the same quarter last year.

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 Stock Up 2.0%

NYSE:GNRC traded up $3.93 during midday trading on Friday, hitting $195.84. 319,227 shares of the company were exchanged, compared to its average volume of 1,037,077. Generac has a fifty-two week low of $134.80 and a fifty-two week high of $296.44. The company has a current ratio of 2.04, a quick ratio of 0.99 and a debt-to-equity ratio of 0.43. The company has a market capitalization of $11.53 billion, a PE ratio of 45.19, a price-to-earnings-growth ratio of 1.83 and a beta of 1.89. The company has a fifty day simple moving average of $252.07 and a 200 day simple moving average of $224.57.

Insider Buying and Selling

In other Generac news, insider Norman P. Taffe sold 550 shares of the firm’s stock in a transaction on Monday, July 6th. The shares were sold at an average price of $256.00, for a total transaction of $140,800.00. Following the transaction, the insider directly owned 15,808 shares of the company’s stock, valued at approximately $4,046,848. This trade represents a 3.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Aaron Jagdfeld sold 5,000 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $272.18, for a total value 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. Over the last 90 days, insiders have sold 6,100 shares of company stock worth $1,651,443. Insiders own 2.40% of the company’s stock.

Institutional Investors Weigh In On Generac

Institutional investors and hedge funds have recently made changes to their positions in the business. Invesco Ltd. grew its holdings in Generac by 49.9% during the 4th quarter. Invesco Ltd. now owns 2,423,971 shares of the technology company’s stock valued at $330,557,000 after buying an additional 806,430 shares during the last quarter. State Street Corp increased its position in Generac by 2.1% during the 2nd quarter. State Street Corp now owns 2,189,927 shares of the technology company’s stock worth $313,619,000 after purchasing an additional 45,592 shares in the last quarter. Boston Partners raised its stake in Generac by 7.1% in the 3rd quarter. Boston Partners now owns 1,947,332 shares of the technology company’s stock valued at $326,003,000 after purchasing an additional 128,439 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in shares of Generac by 20.7% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,104,362 shares of the technology company’s stock worth $184,870,000 after purchasing an additional 189,457 shares during the last quarter. Finally, Dimensional Fund Advisors LP grew its stake in Generac by 10.3% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,051,576 shares of the technology company’s stock worth $143,409,000 after acquiring an additional 98,360 shares during the period. 84.04% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

GNRC has been the topic of several research analyst reports. Cantor Fitzgerald raised their price objective on Generac from $325.00 to $333.00 and gave the company an “overweight” rating in a report on Thursday. Robert W. Baird set a $305.00 price objective on shares of Generac in a research note on Thursday. Argus boosted their price objective on Generac from $255.00 to $290.00 and gave the stock a “buy” rating in a research note on Thursday, April 30th. Jefferies Financial Group restated a “buy” rating on shares of Generac in a report on Wednesday, June 3rd. Finally, JPMorgan Chase & Co. upped their target price on shares of Generac from $229.00 to $267.00 and gave the company an “overweight” rating in a research report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $284.58.

Key Stories Impacting Generac

Here are the key news stories impacting Generac this week:

• Positive Sentiment: Strong Q2 earnings beat: Generac reported adjusted EPS of $2.91, well above the $2.01 consensus estimate and up from $1.65 a year earlier. Net income reached $143 million, while revenue increased 10.3% year over year to $1.17 billion. Shares initially moved higher following the results. Generac beats earnings estimates on data center demand
• Positive Sentiment: Data-center momentum is accelerating: The commercial and industrial segment grew roughly 29% year over year, and Generac’s data-center backlog reached $1.6 billion. Two hyperscaler supply agreements, including nearly $700 million of expected 2027 deliveries, provide greater revenue visibility. The company is also expanding large-megawatt generator capacity and has reduced lead times to approximately 40–45 weeks. Generac Q2 earnings call highlights data center expansion
• Positive Sentiment: 2026 outlook reaffirmed: Management maintained its full-year revenue outlook, raised commercial and industrial growth expectations to the low-30% range, and projected an adjusted EBITDA margin of 20%–21%. A $71 million tariff refund helped quarterly profitability, but management also cited underlying operating leverage. Generac tops Q2 earnings estimates
• Positive Sentiment: Analyst support remains favorable: Cantor Fitzgerald raised its price target to $333 and reiterated an “overweight” rating. Canaccord lowered its target to $275 but retained a “buy” rating, implying substantial upside from recent levels. Analyst price-target updates
• Neutral Sentiment: Guggenheim initiated or maintained a “hold” view, reflecting a more cautious assessment despite the growth opportunity. Generac gets a hold from Guggenheim
• Negative Sentiment: Revenue and residential weakness remain concerns: Quarterly revenue modestly missed expectations, residential sales declined 2%, and low outage activity and soft solar-storage demand continue to pressure the legacy business. The stock also trades at a demanding valuation, increasing sensitivity to any slowdown in data-center orders or execution.

About Generac

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.