GNRC

Generac Holdings is expected to report Q3 2026 earnings on October 28 with consensus estimates of $2.38 EPS (+30.1% YoY) and $1.31B revenue (+17.9% YoY). However, the company has a negative Earnings ESP of -0.07% with a Zacks Rank #3, making it difficult to predict an earnings beat. Despite a strong 49.23% surprise in the last quarter, the stock is not considered a compelling earnings-beat candidate.

Both Generac (GNRC) and Caterpillar (CAT) are capitalizing on AI data center expansion through power generation equipment. Generac secured a $2.4 billion Amazon supply deal with a $1.6 billion backlog, while Caterpillar reported 72% growth in power generation sales to users and a $72 billion total backlog. Despite GNRC's attractive 16.78X forward P/E valuation versus CAT's 22.98X, analysts favor CAT for its diversified business, robust backlog, and stronger financial flexibility.

Generac Holdings maintains its $350 million 2026 free cash flow forecast while increasing capital spending to 4.5% of sales to expand production capacity for its booming data center business. The company has secured $1.6 billion in data center backlog and two multi-year supply agreements, with capital investments expected to pay back in under 12 months. Competitors Caterpillar and Cummins are also benefiting from strong data center power demand.

Generac Holdings Inc. announced it will release its third quarter 2026 financial results on October 28th, 2026, before market open, with a management conference call scheduled for 10:00 a.m. EDT. A webcast will be available on the company's website and Investor Relations page.

Generac Holdings has demonstrated a strong earnings-beat streak, surpassing estimates by an average of 42.28% over the last two quarters. With a positive Earnings ESP of +1.47% and a Zacks Rank #3 (Hold), the company appears well-positioned to beat consensus estimates again in its upcoming earnings report. Analysts have recently revised estimates upward, suggesting bullish sentiment on the company's earnings prospects.

Generac Holdings (GNRC) reported 29% C&I sales growth driven by data center demand, securing $700M in multiyear hyperscale supply deals and projecting $450M in 2026 data center revenues. However, tariff volatility, unfavorable product mix, and lower C&I margins pose risks to profitability. Competitors Caterpillar and Cummins are also capitalizing on strong data center power demand.

The article explains the Zacks Earnings ESP (Expected Surprise Prediction) tool, which identifies stocks likely to beat earnings expectations by comparing analyst revisions. Two industrial products stocks highlighted are Generac Holdings (GNRC) with a +1.47% ESP and Eaton (ETN) with a +0.52% ESP, both holding #3 (Hold) rankings and positioned to potentially surprise positively on upcoming earnings reports in early November 2026.

Wolfspeed shares surged 13.2% to $35.28, driven by optimism over Power Product sales growth in industrial and emerging AI/data center applications, plus the launch of fifth-generation SiC MOSFET. However, the company faces headwinds with expected quarterly losses of $1.99 per share and revenues declining 23.8% year-over-year. Earnings estimate revisions have declined 10.2% over the past month, suggesting the recent rally may not sustain.