Generac (NYSE:GNRC) Releases Earnings Results, Beats Estimates By $0.16 EPS

Generac (NYSE:GNRC) issued its earnings results on Wednesday. The technology company reported $2.54 EPS for the quarter, beating analysts’ consensus estimates of $2.38 by $0.16, FiscalAI reports. The firm had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.32 billion. The business’s revenue for the quarter was up 16.2% compared to the same quarter last year. During the same quarter in the previous year, the company 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 Trading Up 0.4%

GNRC stock traded up $0.70 during trading on Wednesday, hitting $194.41. 1,293,514 shares of the stock traded hands, compared to its average volume of 1,086,696. Generac has a one year low of $134.80 and a one year high of $296.44. The company has a 50 day simple moving average of $199.71 and a 200 day simple moving average of $216.78.

More Generac News

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

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on GNRC shares. Citigroup dropped their price objective on shares of Generac from $300.00 to $232.00 and set a “neutral” rating for the company in a research note on Wednesday, September 30th. TD Cowen raised Generac to a “strong-buy” rating in a report on Monday, October 5th. Barclays lowered their price objective on Generac from $285.00 to $278.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 30th. Wells Fargo & Company set a $280.00 target price on Generac in a report on Thursday, September 17th. Finally, Zacks Research downgraded Generac from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. Two research 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 stock. According to data from MarketBeat, Generac presently has an average rating of “Moderate Buy” and a consensus target price of $289.45.

Insiders Place Their Bets

In other news, insider Kyle Raabe sold 603 shares of the business’s stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $212.57, for a total value of $128,179.71. Following the transaction, the insider directly owned 9,966 shares of the company’s stock, valued at $2,118,472.62. The trade was a 5.71% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Norman Taffe sold 150 shares of Generac stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $220.00, for a total value of $33,000.00. Following the completion of 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 position. 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 ninety days, insiders have sold 18,442 shares of company stock valued at $3,656,537. 2.40% of the stock is currently owned by insiders.

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.