Generac Holdings Inc

Generac Holdings has secured a long-term agreement to supply backup generators for Amazon data centers, with initial deliveries expected to total US$2.4b across 2027 and 2028. The company's shares have returned 47.51% year-to-date and 23.69% over one year, though the 90-day share price return has fallen 25.30%. Against a last close of $208.14, the most followed analyst narrative pegs fair value at $292.38, implying 29% undervaluation, while the stock trades at a P/E of 47.6x versus a US Electrical industry average of 35.2x and a close-peer average of 40.6x. Generac's rapid entry into the data center market and a backlog exceeding $150 million are cited as positioning it for revenue growth, with analyst price targets ranging from $215 to $375. Risks include pressure in residential solar, reliance on outage-driven generator demand, execution risk on new data center capacity, and tighter diesel regulations.

Zacks Equity Research named Generac Holdings as its Bull of the Day and Build-A-Bear Workshop as its Bear of the Day, while also providing analysis on NVIDIA and Sandisk. Generac, a Zacks Rank #1 Strong Buy, reported second quarter adjusted earnings of $2.91 per share against a Zacks Consensus Estimate of $1.95, with revenue of $1.17 billion up 11%, and its Commercial & Industrial product sales jumped 29% to $556.5 million. The company's data center backlog has grown to about $1.6 billion after roughly $1 billion in new orders in 90 days, and on September 16 it disclosed a long-term supply agreement to provide backup generators for Amazon data centers with initial deliveries expected to total $2.4 billion across 2027 and 2028, alongside a warrant for up to 1.69 million shares at $200.93 per share. Build-A-Bear, a Zacks Rank #5 Strong Sell, posted second quarter earnings of 70 cents per share on revenue that dropped 7.2% to $115.3 million, missing the $122 million estimate, and cut its fiscal 2026 revenue forecast to $500 million to $525 million from $530 million to $550 million. The retailer also lowered pre-tax income guidance to $60 million to $68 million from $72 million to $78 million and slashed its Commercial segment outlook to roughly flat from growth of at least 20%.

Generac agreed to supply up to $8 billion worth of backup generators for Amazon's data centers, sending its shares up 18% and making it the top performer on the S&P 500. The company also issued a warrant for a stake in itself, according to a securities filing, and analysts said the stock could double in price over the next 12 to 18 months. The broader market closed higher, with the Dow Jones industrial average adding about 300 points, or roughly 0.6%, the S&P 500 gaining about 86 points, or 1.2%, and the Nasdaq composite rising about 1.7%. Intel shares climbed more than 7.5% after South Korean memory chipmaker SK Hynix said it might team up with the company, following a Reuters report that it could lease part of Intel's long-planned Ohio chip facility or form a venture, though SK Hynix said no decision has been made. Among decliners, Paramount Skydance fell more than 4.6% as a Barclays analyst argued its proposed merger with Warner Brothers could introduce massive financial and operational risks and predicted the company would eventually split up, while Fluence Energy tumbled 15% after cutting its revenue forecast, which analysts attributed to production issues at its Houston facility.

Generac struck a deal with Amazon to supply backup power generators for its data centers, with initial deliveries expected to total $2.4 billion between 2027 and 2028, and also granted Amazon the right to buy up to $340 million worth of its stock. Generac shares soared 19% on the news, while Amazon's stock moved 1.3% higher. Fluence Energy shares tumbled 14% after the battery storage maker cut its full-year guidance, now expecting $2.4 billion in revenue for 2026 versus its prior guidance of $2.9 billion to $3.1 billion, and anticipating a loss of $200 million before interest, taxes, depreciation and amortization, more than its previous guidance range of $30 million loss to $10 million EBITDA. Workday rose 5% after CNBC's David Faber reported that efforts to gain financing for a bid to take the cloud-based human resources software platform private are continuing, citing unidentified sources. Tower Semiconductor rose almost 9% after agreeing with privately-held New Photonics to a high-volume shipment of laser-integrated optical engines designed to meet growing demand for high-bandwidth, energy-efficient optical interconnects in AI infrastructure, and Vital Farms climbed 9% after Axios said the Austin, Texas-based pasture-raised egg and butter producer is exploring strategic alternatives, including privatization.

Generac Holdings Inc. has signed a multi-year agreement to supply Amazon with backup generators for its data centers, an initial order worth $2.4 billion in deliveries during 2027 and 2028. Generac shares jumped more than 40% in extended trading following the announcement. The initial $2.4 billion order is only part of a deal that covers up to $8 billion in total payouts, with Generac also granting Amazon a warrant to purchase up to 1.69 million shares at $200.93 each. About 308,000 of those shares vested instantly, and the rest will vest as Amazon acquires additional generators; exercised in full, the warrant would represent roughly 3% of Generac's outstanding stock. The next thing to watch is how quickly Amazon moves beyond that first $2.4 billion outlay, since the warrant structure gives investors a clear way to track whether the relationship grows much bigger.

Generac shares surged 31% after the company and Amazon executed a long-term supply agreement for backup generators for Amazon's data centers, a deal worth up to $8 billion that includes initial deliveries totaling $2.4 billion in 2027 and 2028 and warrants allowing an Amazon subsidiary to buy Generac shares through 2033. CoreWeave kicked off a fresh round of fundraising that includes a $3 billion convertible bond issue and an at-the-market offering program allowing it to sell as many as 35 million shares from time to time, saying the program will provide financing flexibility and help migrate its credit profile toward investment grade. Lockheed Martin moved on news that the Pentagon and the company struck a framework agreement for a multi-year production contract for the Joint Advanced Tactical Missile, or JATM, which is still in development but close to entering production and would become the most advanced air-to-air missile in the US arsenal, a role long held by RTX's advanced medium range air-to-air missile since 1993; the new missile program is receiving a $2 billion boost in the Trump administration's proposed budget for the fiscal year starting October 1. Boeing faces hard months ahead as CEO Kelly Ortberg and the CFO laid out challenges that surprised investors, including additional testing for the 777X that will spill into next year and a more muted cash outlook.

Generac Holdings surged 33.7% in premarket trading after announcing a long-term agreement with Amazon to supply industrial backup generators for the technology giant's global data centers. The agreement calls for initial deliveries worth about $2.4 billion across 2027 and 2028, while the total value of the arrangement could reach as much as $8 billion. Amazon will also receive a warrant to purchase about 1.69 million Generac shares at an exercise price of approximately $200.93 per share, representing nearly 3% of the company's shares outstanding. Nebius Group NV rose 11.1% in pre-open trading after notifying customers of broad-based price increases across its on-demand GPU cloud services effective Oct. 1, with prices rising approximately 17% for H100 instances, roughly 21% for the latest Nvidia B300 GPU, and 25% for AMD EPYC Genoa CPU rates. BCB Bancorp fell 4.9% in premarket trading after pricing an underwritten public offering of 11 million common shares for gross proceeds of $85.25 million and disclosing it is marketing approximately $210 million of problem loans, while expecting a net loss of between $126.2 million and $136.1 million for the third quarter of 2026.

Generac struck a deal with Amazon to supply backup power generators for its data centers, sending the generator maker's shares up 33% in premarket trading. Initial deliveries are expected to total $2.4 billion between 2027 and 2028, and Generac also granted Amazon the right to buy up to $340 million worth of its stock; Amazon shares rose 1.3%. Lennar fell 1.2% after reporting third-quarter earnings of $1.19 per share, short of the $1.28 expected by analysts polled by FactSet and nearly half of what it saw this time last year, with revenue of $8.05 billion versus the $8.23 billion consensus estimate. Fluence Energy tumbled 22% after cutting its full-year guidance to $2.4 billion in revenue for 2026 from a prior range of $2.9 billion to $3.1 billion, and now anticipates a $200 million loss before interest, taxes, depreciation and amortization versus its previous guidance range of a $30 million loss to $10 million EBITDA. Nike rose 1.5% after announcing the appointment of Alexandre Arnault, Deputy CEO of LVMH's Moët Hennessy, to its board, and Arm Holdings gained roughly 4% after CEO Rene Haas told CNBC's Jim Cramer he is increasingly confident the company can meet demand for its new data center chip.

Jim Cramer warned on Mad Money that AI exposure is making even supposedly diversified portfolios more concentrated, reclassifying Caterpillar as a data center stock after its Power Generation revenue surged 29% and shares rose 90% over the past year. He suggested TJX and Wells Fargo as replacements to balance exposure, noting that true diversification requires separating end-market drivers, not just sector labels. Caterpillar reported its first-ever $20 billion sales quarter in Q2 2026, with revenue of $20.54 billion, up 23.98% year over year, and adjusted EPS of $8.17 versus a $6.20 estimate. The company's backlog expanded $9 billion sequentially to $72 billion, with some orders placed as far out as 2030. Cramer's point extends to other names: Generac's data center backlog hit $1.6 billion, Cisco took $4 billion of hyperscaler AI infrastructure orders in Q4 FY26, and Micron, up 227.94% year to date, reported fiscal Q3 revenue of $41.5 billion. The takeaway is that Caterpillar's data center exposure can reinforce an existing AI bet rather than offset it, so adding a name like TJX could reduce concentration without abandoning technology holdings.

Generac Holdings plans to spend $250 million through the end of 2027 to expand production of larger generators for data centers, Reuters reported Thursday. The investment will cover equipment and capacity upgrades at several factories, and the company expects to hire about 1,000 employees, expanding its workforce by roughly 10%. Generac's backlog for the equipment has reached $1.6 billion as technology companies build increasingly large computing facilities to support AI services. Chief Executive Aaron Jagdfeld told Reuters that the duration of the data-center construction boom remains the central question for companies investing to meet demand.

Generac is spending $250 million by the end of next year to equip multiple factories to make beefed-up generators for data centers, with an order backlog of $1.6 billion and plans to add about 1,000 workers, a 10% increase in headcount. The AI-driven data-center build-out is lifting demand for cooling systems, electrical transformers, construction machinery, and their suppliers, including makers of wire cables, pipes, cement, and prefab metal walls. U.S. factories added 5,000 jobs in July, bringing the year-to-date total to 31,000, a reversal from last year's 113,000 job cuts, while the Institute for Supply Management reported manufacturing activity at its highest level in more than four years. Wood Mackenzie projects the electrical equipment market tied to U.S. data centers will surge from $33 billion in 2025 to $66 billion by 2030, and Siemens announced more than $200 million in investments for two new plants in Georgia and Texas. Smaller suppliers like Southeastern Hose have tripled revenue in five years and added 60 workers, though executives warn of bubble risk and are managing capacity carefully.

Generac reported second-quarter earnings that beat analyst profit estimates by 44.6%, driven by surging demand from data center customers. Revenue rose 10.6% year on year to $1.17 billion, slightly missing the $1.18 billion consensus, while adjusted earnings per share of $2.91 far exceeded the $2.01 forecast. The company’s Commercial & Industrial segment backlog swelled to $1.6 billion, fueled by hyperscale data center orders and two multiyear supply agreements, with the first deal contributing nearly $700 million in commitments for 2027 deliveries. Adjusted EBITDA reached $290.7 million, well above the $216.6 million estimate, aided by approximately $71 million in tariff refunds that boosted gross margins. Management expects continued C&I growth supported by capacity expansions, though residential sales face headwinds from a subdued power outage environment.

Several companies made notable premarket moves following their latest quarterly reports. Biogen rose 0.7% after beating revenue consensus and raising its full-year adjusted EPS guidance. GE HealthCare Technologies surged 12% on second-quarter adjusted earnings per share of $1.13, topping the FactSet consensus of $1.04, and reaffirmed its 2026 earnings guidance. Ford Motor jumped 6% after beating adjusted earnings expectations and hiking its 2026 earnings outlook, though automotive revenue slightly missed LSEG estimates. Vertiv tumbled 13% as its 17.8% organic revenue growth fell well short of the 23.6% FactSet consensus. Generac gained 5.5% on adjusted earnings of $2.91 per share, beating the $2.01 forecast, and reiterated its revenue growth guidance. Procter & Gamble dropped over 3% after fiscal fourth-quarter revenue of $21.2 billion missed the $21.38 billion LSEG estimate, and net income fell to $3.04 billion from $3.62 billion a year ago. Deutsche Bank rose more than 2% after posting a record second-quarter after-tax profit of 1.9 billion euros. CoStar tumbled 15% on a revenue miss and current-quarter guidance of $935 million to $945 million, below the $967.5 million consensus. Rocky Brands surged 16% as adjusted earnings per share more than tripled year-over-year, aided by tariff refunds and strong double-digit growth in several brands. KLA Corp slid 7% after issuing disappointing guidance, while Seagate Technology rose 6% on an outlook that trounced expectations, and Western Digital gained 4% in sympathy. Manhattan Associates climbed 11% after beating estimates and raising full-year forecasts. Visa lost 2% as its 2026 guidance underwhelmed, and it announced plans to cut about 2,600 jobs. Teradyne surged 9% on beats across second-quarter results and third-quarter forecasts. NXP Semiconductors lost 1.7% as its third-quarter adjusted earnings guidance bracketed the LSEG estimate. Skyworks Solutions slumped 9% after adjusted margin of 44.9% narrowly missed the 45.0% expectation.

Brown Advisory's Large-Cap Growth Strategy highlighted Trane Technologies as a key contributor in the first quarter of 2026. The strategy modestly trailed the Russell 1000 Growth Index amid market volatility, but relative performance improved as the quarter progressed. Industrials was the strongest relative contributor, driven by strong performance from Generac Holdings and Trane Technologies. Trane Technologies performed well after reporting strong results, supported by robust commercial HVAC demand and a healthy backlog, which reinforced confidence in its outlook and competitive positioning. The strategy's ability to outperform in a down market indicates the quality of its holdings, and the firm remains focused on maintaining a diversified portfolio of high-quality growth companies.

Brown Advisory's Large-Cap Growth Strategy highlighted Generac Holdings in its first-quarter 2026 investor letter, noting the stock traded higher during the quarter. The firm said Generac rebounded from prior weakness tied to a mild storm season in late 2025, supported by improving demand signals including increased outage activity and continued strength in Commercial and Industrial sales. Management also highlighted progress in building its data center-related backlog, reinforcing the company's long-term growth opportunity. Generac closed at $252.66 per share on July 2, 2026, with a market capitalization of $14.87 billion, and its shares gained 65.82% over the past 52 weeks.

Generac reported first-quarter revenues of $1.06 billion, up 12.4% year on year and exceeding analyst expectations by 1.1%, while Bloom Energy posted revenues of $751.1 million, a 130% increase that beat estimates by 42%. Among the 17 renewable energy stocks tracked, aggregate revenues surpassed consensus by 5.7% and next-quarter guidance was in line. FuelCell Energy was the weakest performer with revenues of $35.59 million, down 4.9% and missing estimates by 12.6%. Enphase reported revenues of $282.9 million, down 20.6% but meeting expectations, and EVgo posted revenues of $109.5 million, up 45.5% and beating estimates by 22.9%.

UBS raised its price target on Generac Holdings to $335 from $305 while reiterating a Buy rating, citing increased confidence in the sustainability of the company's earnings growth trajectory and improved long-term financial visibility. The upgrade follows Generac's June 2 announcement of a global supply agreement with a hyperscale data center operator to provide backup power generators, which CEO Aaron Jagdfeld said positions the company to support the expanding digital economy and establishes a foundation for future growth as data center demand rises.

A bullish thesis on Generac Holdings Inc. was shared on r/ValueInvesting by ValueEquities, presenting the company as a compelling value opportunity tied to AI infrastructure buildouts. The thesis argues that every major AI platform, cloud provider, and hyperscale data center depends on reliable power, and Generac is transforming from a residential generator manufacturer into a critical supplier of backup power systems for data centers and commercial customers. The company recently announced a supply agreement with a hyperscale data center operator, which could serve as a long-term growth catalyst. First-quarter 2026 results showed revenue up 12% year-over-year to $1.06 billion and adjusted earnings per share of $1.80, significantly exceeding consensus estimates of $1.33, with the commercial and industrial segment delivering 28% year-over-year growth. Management raised its full-year outlook to mid-to-high teens revenue growth and targets nearly 90% EBITDA growth by 2028. As of June 22nd, GNRC shares traded at $295.54 with a forward P/E of 34.36.

Generac Holdings shares have surged 116.7% year-to-date and 132.1% over the past 52 weeks, far outpacing the S&P 500's 9.2% and 24% returns over the same periods. The stock touched a 52-week high of $296.03 and rose 48.3% over the past three months, compared with a 13.6% gain for the S&P 500. GNRC has been trading above its 50-day moving average since mid-January and above its 200-day moving average over the past year. The company's strong performance has been driven by commercial and industrial growth, including a 28% jump in data center sales and a global supply deal tied to the $100 billion Stargate AI project. Wall Street analysts hold a consensus Moderate Buy rating on the stock, with a mean price target of $286.80 and a Street-high target of $335, implying a potential 13.4% upside.

Generac Holdings announced the acquisition of a new facility in Belvidere, Illinois, to expand its packaging capacity for large-megawatt generators amid soaring demand from data centers and other critical industries. The plant will focus on enclosure assembly and final packaging of shipment-ready units, complementing Generac's February acquisition of Enercon Engineering. It is expected to open in 2027 and will create more than 100 new jobs. The investment is part of Generac's efforts to bolster its domestic manufacturing footprint and meet growing demand, with the company's data center backlog rising to more than $700 million in the first quarter. As a result, Generac raised its full-year 2026 guidance, now expecting consolidated net sales to increase at a mid- to high-teens rate.

The global data center generators market is projected to grow from USD 8.57 billion in 2026 to USD 9.79 billion in 2031 at a CAGR of 2.7%, according to a new report by MarketsandMarkets. North America is expected to hold the largest market share, while the above 3 MW generator segment is forecast to grow at the highest CAGR of 5.4%. Diesel generators are estimated to account for USD 5,789.6 million in 2026, and bi-fuel generators are anticipated to see the fastest growth due to emission-reduction pressures. Key drivers include the expansion of edge computing, AI-driven data centers, and the shift toward hydrogen-ready and hybrid power solutions. Leading vendors such as Caterpillar, Cummins, Rolls-Royce, Generac Power Systems, and Kohler Energy are expanding capacity and developing next-generation technologies for hyperscale and colocation facilities.