Why Generac Stock Is Soaring Today
Leading standby generator and energy storage specialist Generac (NYSE: GNRC) saw its shares rise 17% as of 2 p.m. ET on Wednesday after the company smashed first-quarter earnings expectations. Generac grew Q1 sales and adjusted earnings per share by 13% and 43%, while raising its 2026 sales guidance from mid-teens growth to a mid-to-high-teens increase. While these figures are impressive enough, it was Generac's backlog that stole the show, in my opinion, and helped spark today's soaring share price.
The company's backlog surpassed $700 million -- up $300 million from the last quarter -- and this doesn't include a $600 million nonbinding notice to proceed from a hyperscale customer. This booming backlog is particularly important for investors to see, as it suggests that Generac's expansion into providing generators to global data center customers is accelerating. Reinforcing this notion, management projects that this burgeoning Commercial and Industrial (C&I) segment will grow by 25% to 30% -- up from 20% to 25% last quarter.
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Source Fool.com
