Generac raises guidance on back of backup power demand and data centers

Published: 2026-04-29 12:57:59 ET GNRC

The electrical equipment manufacturer is benefiting from a favorable environment marked by increasing power outages and the boom in digital infrastructure, allowing it to raise its annual forecasts.

Esteban Tesson

Published on 04/29/2026 at 12:57 pm EDT

Generac has raised its growth outlook after posting quarterly results that beat expectations. The group now forecasts net sales growth for 2024 in the mid-to-high single-digit range, compared to a previous estimate at the midpoint of that range. This revision is supported by solid demand for standby generators, fueled by the increased frequency of extreme weather events and concerns regarding power grid reliability.The company is also capitalizing on the data center boom, with a ramp-up in its order book and progress in qualification processes with major cloud providers. Sales in the commercial and industrial segment jumped by approximately 28% during the quarter, while the residential business, the primary revenue driver, grew by 1%. Generac has also reorganized its operations into two divisions, Residential and Commercial & Industrial, to better align with evolving demand.Q1 revenue reached $1.06bn, slightly ahead of the $1.05bn expected. Adjusted EPS came in at $1.80, significantly beating the $1.33 forecast. Following these announcements, the group's shares jumped about14% trading, reflecting investor confidence in its growth prospects.