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

Posted by Stanley Muller on Jul 30th, 2026

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

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 Trading Down 0.5%

GNRC traded down $0.97 on Thursday, reaching $194.22. 472,869 shares of the company traded hands, compared to its average volume of 1,030,495. The company has a market cap of $11.43 billion, a P/E ratio of 60.79, a price-to-earnings-growth ratio of 1.83 and a beta of 1.89. The company has a quick ratio of 0.99, a current ratio of 2.03 and a debt-to-equity ratio of 0.47. Generac has a one year low of $134.80 and a one year high of $296.44. The firm has a fifty day simple moving average of $253.18 and a two-hundred day simple moving average of $224.29.

Analyst Ratings Changes

A number of research analysts have recently commented on GNRC shares. Robert W. Baird set a $311.00 target price on Generac in a research report on Thursday, April 30th. Raymond James Financial set a $302.00 price objective on shares of Generac in a research report on Friday, May 22nd. Barclays reduced their target price on shares of Generac from $285.00 to $278.00 and set an “equal weight” rating on the stock in a report on Thursday. Jefferies Financial Group reaffirmed a “buy” rating on shares of Generac in a report on Wednesday, June 3rd. Finally, TD Cowen reiterated a “buy” rating on shares of Generac in a research report on Monday, July 20th. 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 stock. Based on data from MarketBeat, Generac presently has a consensus rating of “Moderate Buy” and a consensus price target of $287.39.

Read Our Latest Report on GNRC

Insider Transactions at Generac

In related news, CEO Aaron Jagdfeld sold 5,000 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $272.18, for a total value of $1,360,900.00. Following the completion of the sale, the chief executive officer owned 564,528 shares in the company, valued at approximately $153,653,231.04. The trade was a 0.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Norman P. Taffe sold 550 shares of the stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $256.00, for a total value of $140,800.00. Following the completion of the transaction, the insider directly owned 15,808 shares in the company, valued at approximately $4,046,848. This trade represents a 3.36% decrease in their position. The SEC filing for this sale provides additional information. 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 over the last 90 days. Insiders own 2.40% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Gen Wealth Partners Inc boosted its stake in Generac by 8.7% in the fourth quarter. Gen Wealth Partners Inc now owns 675 shares of the technology company’s stock valued at $92,000 after acquiring an additional 54 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in shares of Generac by 2.7% during the 3rd quarter. NewEdge Advisors LLC now owns 2,749 shares of the technology company’s stock valued at $460,000 after purchasing an additional 73 shares during the last quarter. Vident Advisory LLC grew its stake in Generac by 2.9% during the 3rd quarter. Vident Advisory LLC now owns 2,651 shares of the technology company’s stock worth $444,000 after buying an additional 74 shares during the last quarter. Fiduciary Trust Co increased its position in Generac by 4.5% during the 3rd quarter. Fiduciary Trust Co now owns 1,842 shares of the technology company’s stock valued at $308,000 after buying an additional 80 shares in the last quarter. Finally, MML Investors Services LLC raised its stake in Generac by 1.8% in the fourth quarter. MML Investors Services LLC now owns 5,051 shares of the technology company’s stock valued at $689,000 after buying an additional 88 shares during the last quarter. Hedge funds and other institutional investors own 84.04% of the company’s stock.

Key Stories Impacting Generac

Here are the key news stories impacting Generac this week:

Positive Sentiment: Generac reported adjusted EPS of $2.91, beating the roughly $2.01 consensus estimate and rising 76% year over year. Net income reached $143 million, while revenue increased 10.3% to $1.17 billion. Generac Reports Second Quarter 2026 Results
Positive Sentiment: The commercial and industrial segment continued to accelerate, with sales rising approximately 29% to $556 million. Management raised expected C&I growth to the low-30% range, supported by strong demand from data centers and other critical-power customers. Generac Tops Q2 Earnings Estimates, Reaffirms 2026 Revenue Outlook
Positive Sentiment: A rapidly expanding data-center backlog, reported at about $1.6 billion, and supply agreements with hyperscale customers provide visibility into 2027 growth. Generac is also expanding large-megawatt generator capacity and has reduced lead times versus industry norms, strengthening its competitive position. Data Center Demand and Generac Growth
Positive Sentiment: Adjusted EBITDA margin expanded significantly, and management reaffirmed its 2026 revenue outlook while raising full-year net-income margin guidance to approximately 9%–10%. Tariff refunds and operating leverage contributed to the improvement. Generac AI Data Center Growth Supports Bullish Outlook
Neutral Sentiment: Revenue of $1.17 billion was slightly below the approximately $1.18 billion analyst estimate, although the earnings beat and reaffirmed outlook outweighed the modest sales shortfall. Generac Misses Q2 Sales Expectations
Negative Sentiment: Residential sales declined 2% year over year as outage activity remained below historical levels and solar-storage demand stayed weak. In addition, part of the earnings beat came from a $71 million pre-tax tariff refund, creating a potential concern about the sustainability of the quarter’s unusually strong margins.
Negative Sentiment: At roughly 61 times earnings, GNRC carries a demanding valuation, leaving the stock sensitive to any slowdown in data-center orders, execution issues during capacity expansion, or disappointment in future guidance.

About Generac

(Get Free Report)

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.