Zacks Investment Research·2d ago
Is GNRC Worth Buying as Data Center Growth Tests Margins and Risk?Generac's $4.5B data center backlog and attractive earnings valuation support growth prospects, but margin pressure risks warrant caution.
Generac's revenue rebounded from $942.1M in 2025Q1 to roughly $1.3B in 2026Q3, a 16.2% year-over-year gain that suggests demand has recovered meaningfully from the prior-year trough.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue recovered to roughly $1.3B in 2026Q3 with gross margin of 39.9%, but operating margin fell to 12.4% from 17.9% in 2026Q2 as SG&A climbed to $263.0M, suggesting margin durability remains uncertain.
Generac offers integrated solar power, battery storage, and smart home energy management systems, positioning it as a leader in residential energy control.
Generac holds roughly 80% of the North American residential home standby generator market, supported by its distribution network and brand recognition.
Rising demand for backup power solutions drives Generac's growth, as highlighted by bullish investment theses.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 28, 2026 | $2.54+5.8% vs $2.40 | $1.3B-2.3% vs $1.3B |
Q3 2026 Jul 29, 2026 | $2.91+44.8% vs $2.01 | $1.2B-0.4% vs $1.2B |
Q2 2026 Apr 29, 2026 | $1.80+35.3% vs $1.33 | $1.1B+0.7% vs $1.1B |
Q1 2026 Feb 11, 2026 | $1.61-11.0% vs $1.81 | $1.1B-6.0% vs $1.2B |
Generac's $4.5B data center backlog and attractive earnings valuation support growth prospects, but margin pressure risks warrant caution.
Generac Holdings Inc. GNRC has fallen 15.3% over the month even as several operating measures improved. The pullback leaves investors weighing whether stronger earnings and expanding data center demand can support a rebound.
Generac's $2.4 billion Amazon deal boosts data center revenue visibility, but rapid capacity expansion and margin pressures pose challenges.
Here is how Generac Holdings (GNRC) and Murata Manufacturing Inc. (MRAAY) have performed compared to their sector so far this year.
Benchmark GNRC against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Generac Holdings Inc. (GNRC)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $176.78 | $10.41B | 34.95 | -2.02% | 6.52% | 10.76% | 0% | |
| $429.45 | $22.69B | 25.09 | 3.84% | 13.78% | 23.14% | 1.25% | |
| $133.12 | $4.85B | 25.50 | 9.08% | 16.49% | 27.51% | 0.26% | |
| $94.17 | $4.16B | 21.16 | 5.44% | 8.83% | 14.46% | 1.17% | |
| $450.07 | $62.1B | 18.73 | -1.27% | 9.26% | 24.12% | 1.69% | |
| $558.63 | $257.33B | 21.76 | 4.29% | 15.21% | 58.53% | 1.05% |
Generac Holdings Inc. (GNRC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Generac Holdings Inc. (GNRC) SEC filings — annual & quarterly reports (10-K, 10-Q)
Oct 28, 2026·SEC
Jul 29, 2026·SEC
Jun 12, 2026·SEC
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Generac Holdings Inc. (GNRC) stock FAQ — growth, dividends, profitability & financials explained
Generac Holdings Inc. (GNRC) reported $4.62B in revenue over the trailing twelve months. Revenue was $4.21B in fiscal year 2025. That is 657% more than the $555.7M of fiscal year 2007.
Generac Holdings Inc. (GNRC) grew revenue by 6.1% over the trailing twelve months, compared with the twelve months before.
Yes. Generac Holdings Inc. (GNRC) earned $301.3M in net income over the trailing twelve months (a 6.5% net margin).
Generac Holdings Inc. (GNRC) does not currently pay a meaningful dividend.
Generac Holdings Inc. (GNRC) had a return on equity (ROE) of 10.8% over the trailing twelve months. That is in line with the market's typical 10-15%.
Generac Holdings Inc. (GNRC) generated $414.5M in free cash flow over the trailing twelve months.
