UBS has raised its price target on GE Vernova to $936.00 from $835.00 and reiterated a Buy rating on the power-focused company. The broker's move follows GE Vernova's recent fourth-quarter disclosures and a set of margin-related details that UBS says have increased its confidence in the company's ability to outperform both medium-term targets and consensus margins.
At the time of the revision the stock was trading at $693.23, giving GE Vernova a market capitalization of $180.68 billion. Over the past 12 months the shares have returned 101.91%. InvestingPro analysis referenced by market participants indicates the stock is trading above its Fair Value and that the analyst consensus remains bullish at 1.76 (Buy).
UBS pointed to the company’s fourth-quarter results and accompanying disclosures as the catalyst for the higher target. GE Vernova reported revenue of $38.07 billion for the period and a gross profit margin of 19.79%; UBS described these results as reinforcing its conviction on margin upside. The bank highlighted two concrete margin drivers identified by the company.
First, UBS noted that GE Vernova disclosed its Power segment equipment backlog contains a cumulative 17 percentage points of margin originating from 2023 through 2025. These margin gains, according to the company, are expected to be delivered starting in the second half of 2026. Second, UBS said GE Vernova expects an additional 10 to 20 points of pricing strength embedded in its Service and Repair Agreements (SRAs), with those gains slated for delivery by 2028.
Modeling these drivers, UBS set out a scenario in which, assuming a starting point of 0% Power margins today, margins could exceed 30% by 2030. Under that projection UBS suggests earnings could reach roughly $50 per share by 2030, which the bank calculates would be more than 20% above current consensus estimates.
Separately, GE Vernova released fourth-quarter 2025 financials that markedly beat expectations. The company reported earnings per share of $13.39 compared with an anticipated $3.22, a surprise of 315.84%. Revenue for the quarter was $11.00 billion versus forecasts of $10.23 billion.
Following the strong quarter, several other analysts adjusted their price targets while retaining constructive stances. Jefferies raised its target to $930 and kept a Buy rating. TD Cowen lifted its target to $780 and maintained a Buy. BMO Capital moved its target to $785, keeping an Outperform rating and citing growth in gas turbine orders. Oppenheimer increased its price target to $871 while noting that challenges in the Wind business could influence future guidance.
Taken together, the analyst revisions and the company's disclosures point to broad support among sell-side firms for GE Vernova's outlook, even as industry-level headwinds in some businesses remain. Market indicators show the shares have advanced sharply, and some valuation measures classify the stock as trading above its assessed Fair Value.
Market context
- Equity performance: 101.91% total return over the past year.
- Current trading and size: $693.23 share price, $180.68 billion market capitalization.
- Analyst consensus: 1.76 (Buy) and InvestingPro flags the stock as trading above Fair Value.
Bottom line
UBS's price-target increase reflects a reassessment of GE Vernova's margin potential based on disclosed backlog margins and expected SRA pricing. The company's fourth-quarter beat on both EPS and revenue helped prompt positive revisions across several brokerages. While the outlook is more favorable than many expected earlier in the year, valuation measures and business-specific headwinds remain factors investors and analysts will monitor.