New York, Feb 11, 2026, 18:18 EST — After-hours update
- Generac shares climbed roughly 18% to around $215, building on a strong rally during regular trading hours
- The company projects mid-teens net sales growth for 2026, expecting commercial and industrial sales to rise roughly 30%
- Fourth-quarter results fell short of Wall Street expectations, hit by weaker demand for residential generators
Shares of Generac Holdings Inc surged roughly 18% on Wednesday, maintaining much of that momentum in after-hours trading following the company’s announcement of a growth forecast through 2026 driven by data-center demand.
This shift is crucial now as Generac’s main residential generator market faces a lull with fewer outages, and investors have been eager for a catalyst beyond storms to drive growth.
Management is highlighting commercial and industrial backup power, including for data centers, as the key growth driver, despite the latest quarter falling short of expectations.
Generac surged 17.8% to close at $214.73 and hovered near $215.40 in after-hours trading. Throughout the regular session, the shares fluctuated between about $190 and $221. 1
Generac’s fourth-quarter net sales dropped 12% to $1.09 billion, with adjusted earnings coming in at $1.61 per share, the company reported. The firm also recorded a $24 million net loss, largely due to a $104.5 million provision related to a settlement-in-principle over a portable generator product liability case. 2
Adjusted earnings per share came in below the $1.77 analysts had predicted, while revenue also missed the $1.16 billion consensus, according to LSEG data cited by Reuters. The report highlighted a drop in power outages and inflation-driven caution among households when it comes to upgrades. 3
Residential product sales dropped roughly 23% to $572 million, but commercial and industrial product sales climbed around 10% to $400 million, driven by demand from data-center clients. CEO Aaron Jagdfeld noted that “momentum in the data center end market has further accelerated,” pointing to “hyperscale” customers — the largest cloud-data-center operators — as key order contributors.
Generac expects net sales to climb by the mid-teens percentage range in 2026, driven by commercial and industrial sales jumping around 30% and residential sales rising about 10%. The company forecast an adjusted EBITDA margin near 18% to 19% — a profit measure excluding interest, taxes, and what management considers non-core items — and projected a net income margin of roughly 8% to 9%.
During the earnings call, CFO York Ragen outlined expectations for about $350 million in free cash flow by 2026, with capital spending around 3.5% of projected net sales. Jagdfeld mentioned that the investor day scheduled for March 25 will provide “a lot more context” on capacity plans. The company also flagged first-quarter results due in late April. 4
Generac’s move into bigger megawatt units for data centers brings it nearer to heavy hitters like Cummins and Caterpillar, where lead times and service networks often weigh just as heavily as cost.
However, the 2026 plan hinges on assumptions that might not hold up. If outages stay low for an extended period, residential demand could feel the squeeze. Plus, data-center orders risk slipping if developers stall construction or postpone deliveries.
On Wednesday, a Form 8-K was filed, attaching the earnings release and detailing the company’s use of non-GAAP metrics. Traders are now watching closely to see if the data-center backlog actually converts into shipments—and if management’s numbers at the March 25 investor day hold up. 5
