Generac (GNRC) Q2 2026: Data Center Surge Drives a 45% EPS Beat
As seen on the 24/7 Wall St. homepage on July 29, 2026.
Generac crushed second quarter earnings with $2.91 adjusted EPS, demolishing the $2.01 consensus by 45%, as its data center backup power business surged 29% and backlog hit $1.6 billion. A $71 million tariff refund helped margins, but the real story is the company's pivot working: Commercial & Industrial revenue is ramping hard while Residential stumbles.
Continue ReadingShow less
Generac posted adjusted earnings per share of $2.91 for the second quarter of 2026, well ahead of the $2.01 consensus estimate — a beat of roughly 45%. That result is the strongest the company has delivered in at least the past two years, standing out against a recent stretch that included two straight quarterly misses in Q3 and Q4 2025. Revenue came in at $1.17 billion, essentially in line with the $1.18 billion estimate.
The headline driver was the company's data center backup power business, which surged 29% and helped push the Commercial and Industrial segment into a clear growth gear. A $71 million tariff refund provided an additional lift to margins. The residential side of the business continued to struggle, underscoring that Generac's recovery story is running on its commercial pivot rather than any broad-based rebound in home standby demand.
Sponsored
_________________________________
What's Your Number...?
Here's a question most people 5y from retirement can't answer: at your current savings rate, how much do you need, and how long will it actually last? A good advisor can put a date on that in a single meeting. SmartAsset's free quiz matches you with up to three fiduciary advisors serving your area, so you can get YOUR retirement number now (sponsor)
__________________________________________
The $1.6 billion backlog is the figure investors will want to watch most closely going forward. It signals that the data center momentum has staying power and that C&I revenue should continue ramping — but it also means execution risk: delivering on that backlog while managing tariff uncertainty and a soft residential market will be the central test for management in the quarters ahead.
Mentioned: GNRC