GE: Vernova surges on AI power demand; $362M power segment fallout shadows past

Court: S.D. New York

Case: 1:17-cv-08457

GE Vernova GEV jumped 15% after its Q2 earnings beat expectations, boosted by soaring demand for gas turbines and nuclear-related services to power AI data centers. The company now ranks among the S&P 500’s top performers in 2025.

What’s Happening Now

• Q2 earnings: $1.78 per share vs. $1.55 expected
• Revenue: $9.11B, beating $8.8B estimates
• Orders surged thanks to AI-driven data center energy demand
• Gas and steam services (including nuclear) orders rising rapidly
• GEV's backlog grew $14B YoY to $128.7B
• GEV is acquiring AI software startup Alteia to expand its grid software business
• Stock up ~85% YTD, third-best performer in the S&P 500

But $362.5M Power Segment Settlement Still Shadows GE

GE Aerospace has agreed to a $362,500,000 cash settlement with GE investors to resolve claims that the company’s Power segment underperformance led to overstated 2017 financial guidance.

Timeline Overview

• Oct 20, 2017: GE cuts cash flow guidance; GE falls 7%
• Nov 13, 2017: Dividend cut 50%, shares drop 12.5%
• Jan 16, 2018: $6.2B insurance charge announced, triggering 13% decline
• Nov 1, 2019: Investors sue over misleading financial disclosures
• Jan 2025: GE finalizes $362.5M investor settlement

Allegations Include

• Misleading cash flow and earnings guidance in 2017
• Concealing financial risks tied to insurance liabilities
• Failing to alert investors to deteriorating Power segment performance

Investor Update

The settlement resolves a class action covering investors from Feb 19, 2016 to Apr 23, 2018 in the S.D. New York court.

You can check more information about it and file for a payout HERE.