Key Points

GE Vernova order book and backlog expand quickly amid surging needs from data centers.
Leadership however noted rising resistance from additional states opposed to fresh data center builds.
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GE Vernova (NYSE: GEV) stands as the top global producer of natural gas turbines. The firm advances strongly with multiple recent wins and updated 2026 targets in late April following a sharp 71% rise in first quarter orders.

Still the shares dropped 10.6% in May per S and P Global Market Intelligence figures and continued lower into June.

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This raises the issue of whether investors overlook something under the surface.

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GE Vernova expands at a fast clip

All recent operational reports from GE Vernova highlight strong expansion. Its gas power equipment backlog and slot reservation agreements grew from 83 gigawatts to 100 GW and leaders expect to exceed 110 GW by year end.

SRAs represent firm deals where power producers pay 20% to 25% of turbine value upfront to secure future production slots. Fueled by artificial intelligence data centers demand runs so high that GE Vernova lines stay booked for years ahead. Buyers seeking new natural gas turbines now encounter waits extending to 2029 which pushes utilities to lock in capacity for 2029 and 2030 immediately.

GE Vernova overall backlog reached 263 billion dollars in the first quarter and it forecasts 18% revenue growth at the midpoint for 2026.

So what explains the share price movement? Two factors appear to have slowed recent gains.

Why GE Vernova stock declines and what to consider

At the Bernstein Strategic Decisions Conference in late May GE Vernova CEO Scott Strazik offered a measured view on data center power initiatives. Strazik highlighted how more U.S. states start to resist new data centers due to heavy grid pressure and resulting electricity cost increases. Some GE Vernova clients even face delays completing projects amid growing local and regulatory obstacles.

Wall Street viewed the remarks as a dose of realism. Since GE Vernova shares already carried a large premium after a steep 255% climb over the year through April 2026 any sign of slower project progress prompted investors to take profits right away.

At the same time GE Vernova faces an ongoing legal conflict with Spains Iberdola regarding the Vineyard Wind offshore effort. GE Vernova sought to exit citing 360 million dollars in unpaid bills yet the developer filed a countersuit to prevent withdrawal alleging over 1 billion dollars in damages and losses tied to a 2024 wind turbine blade issue. A Massachusetts judge directed GE Vernova to remain involved or resolve via arbitration.

Although the dispute may have added to the share drop it does not represent a core problem. The decline stems mainly from profit taking after a large advance. With the companys position in electrification and its substantial backlog GE Vernova offers a robust long term opportunity and a buy on any dips.

Should you purchase GE Vernova shares now?

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Neha Chamaria holds no position in any stocks mentioned. The Motley Fool maintains positions in and recommends GE Vernova. The Motley Fool follows a disclosure policy.

The views and opinions expressed here belong to the author and may not reflect those of Nasdaq Inc.