Highlights

  • GNRC shares surged after updated full-year outlook commentary
  • Data centre demand supported commercial and industrial revenue
  • Q4 sales declined amid lower residential generator shipments

Shares of Generac Holdings (NYSE:GNRC) rose around 17% after the company released commentary pointing to growth tied to AI-related infrastructure and data centre demand. The share price increase followed management’s outlook for 2026, which referenced mid-teens percentage growth in full-year sales and higher expected volumes in commercial and industrial products. The market reaction came despite a year-on-year decline in fourth-quarter revenue, with attention centred on order visibility linked to hyperscale data centre customers.

Quarterly Results Show Mixed Revenue Trends

Generac reported fourth-quarter net sales of USD 1.1 bn, down 12% from the prior year. Residential product revenue declined 23% to USD 572 mn, reflecting fewer power outages and lower shipments of portable generators. Commercial and industrial revenue increased 10% to USD 400 mn, supported by higher sales to data centre customers. Adjusted net income for the quarter was USD 95 mn, or USD 1.61 per share, compared with USD 168 mn, or USD 2.80 per share, in the prior-year period.

Backlog Visibility from Data Centre Customers

Management stated that momentum in the data centre end market has accelerated, with multiple hyperscale customers expected to contribute volumes to the backlog over coming quarters. The update linked commercial and industrial demand to infrastructure requirements associated with large-scale computing capacity, including AI-related workloads.

Capacity Expansion to Support Larger Systems

The company referenced investments aimed at expanding capacity for large megawatt generators, including the purchase of an additional manufacturing facility in Wisconsin and ongoing upgrades across global facilities. Management also outlined expectations for a 10% increase in residential product sales linked to normalised outage activity and approximately 30% growth in commercial and industrial sales as data centre-related demand scales.

Latest Closing Price (as of February 11, 2026): Generac Holdings Inc (NYSE: GNRC): USD 214.99, +32.69 (+17.93%)