GNRC AI Stock Analysis – Buy, Hold, or Avoid?
Generac Holdings Inc. (GNRC)
Fundamentals
Generac Holdings Inc. has demonstrated a solid recovery from its previous quarterly setbacks, with improving margins and earnings growth in the first half of 2026. The company’s revenue and profitability trends underscore its strengthening position despite industry headwinds. However, volatility in quarterly performance and cost pressures remain considerations alongside generally optimistic outlooks.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
10.59% YoY
Q2 2026
Net Income
93.53% YoY
Q2 2026
Net Margin
Q2 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q2 2026
Net Income Growth YoY
Latest Quarter: Q2 2026
Revenue Per Share Growth YoY
Latest Quarter: Q2 2026
EPS Growth YoY
Latest Quarter: Q2 2026
Book Value Per Share Growth YoY
Latest Quarter: Q2 2026
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.2B | 1.1B | 1.1B | 1.1B | 1.1B | 942.1M | 1.2B | 1.2B |
| Revenue Growth YoY | +10.59% | +12.44% | -11.60% | -5.05% | +6.31% | +5.94% | +16.09% | +9.61% |
| Net Income | 143.2M | 73.3M | -24.5M | 66.2M | 74.0M | 43.8M | 128.9M | 113.7M |
| Net Income Growth YoY | +93.53% | +67.09% | -118.99% | -41.83% | +25.21% | +86.19% | +34.27% | +88.53% |
| EPS | $2.44 | $1.25 | -$0.42 | $1.14 | $1.27 | $0.74 | $2.18 | $1.91 |
| EPS Growth YoY | +92.13% | +68.92% | -119.27% | -40.31% | +28.28% | +89.74% | +37.11% | +94.90% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 44.47% | 38.72% | 36.29% | 38.31% | 39.27% | 39.48% | 40.61% | 40.24% |
| Operating Margin | 17.93% | 11.07% | -0.85% | 9.25% | 10.53% | 8.88% | 16.04% | 14.37% |
| Net Margin | 12.21% | 6.91% | -2.24% | 5.94% | 6.97% | 4.65% | 10.44% | 9.69% |
| Return on Equity (ROE) | 4.98% | 2.74% | -0.93% | 2.50% | 2.88% | 1.78% | 5.17% | 4.72% |
| Return on Assets (ROA) | 3.48% | 2.14% | -0.60% | 1.61% | 2.32% | 1.52% | 4.42% | 3.86% |
Technical Analysis
Generac Holdings Inc. (GNRC) is currently in a technical downtrend with strong bearish momentum, evidenced by its price trading below the 50-day and 200-day SMAs and an RSI near the oversold zone. Although there are some mixed MACD signals hinting at potential near-term relief, overall momentum and chart patterns support a cautious stance as the stock approaches key support levels around $190-$200.
No extreme reading
Price in downtrend
Strong trend active
Watching for cross
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Generac Holdings Inc. has demonstrated a solid recovery from its previous quarterly setbacks, with improving margins and earnings growth in the first half of 2026. The company’s revenue and profitability trends underscore its strengthening position despite industry headwinds. However, volatility in quarterly performance and cost pressures remain considerations alongside generally optimistic outlooks.
Latest Earnings
Q2 2026 Earnings (Jun 30, 2026)
Earnings Per Share (EPS)
Actual
$2.91
Estimated
$2.01
Surprise
+$0.90
Surprise %
+44.78%
Revenue
Actual
$1.17B
Estimated
$1.18B
Surprise
-$4.41M
Surprise %
-0.37%
Historical Earnings
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $2.91 | $1.80 | $1.61 | $1.83 | $1.65 | $1.26 | $2.80 | $2.25 |
| EPS (Estimated) | $2.01 | $1.33 | $1.81 | $2.25 | $1.33 | $0.99 | $2.49 | $1.95 |
| EPS Surprise | +$0.90 | +$0.47 | -$0.20 | -$0.42 | +$0.32 | +$0.27 | +$0.31 | +$0.30 |
| % Diff | +44.8% | +35.3% | -11.0% | -18.7% | +24.1% | +27.3% | +12.4% | +15.4% |
| Revenue | ||||||||
| Revenue (Actual) | $1.17B | $1.06B | $1.09B | $1.11B | $1.06B | $942.12M | $1.23B | $1.17B |
| Revenue (Estimated) | $1.18B | $1.05B | $1.16B | $1.16B | $1.21B | $1.06B | $1.25B | $1.23B |
| Revenue Surprise | -$4.41M | +$7.3M | -$69.1M | -$46.25M | -$152.46M | -$121.97M | -$10.87M | -$59.66M |
| % Diff | -0.4% | +0.7% | -6.0% | -4.0% | -12.6% | -11.5% | -0.9% | -4.8% |
Valuation
Generac Holdings Inc. is currently trading at a premium valuation relative to many of its industrial peers, supported by strong growth in its commercial and data center segments despite challenges in residential markets. Analyst consensus remains moderately positive with a significant upside projected in 12-month price targets, reflecting confidence in the company's growth prospects and strategic positioning. However, mixed technical signals and valuation concerns suggest the need for cautious optimism in the near term.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 30.00 | 39.07 | -81.17 | 36.71 | 28.19 | 42.79 | 17.78 | 20.80 |
| Price to Sales | 14.63 | 10.77 | 7.28 | 8.75 | 7.93 | 7.94 | 7.48 | 8.05 |
| Price to Book | 5.96 | 4.27 | 3.02 | 3.69 | 3.27 | 3.03 | 3.70 | 3.92 |
| Enterprise Value to EBITDA | 89.11 | 74.17 | 221.31 | 74.47 | 62.53 | 72.01 | 49.97 | 51.15 |
| Enterprise Value to Revenue | 15.68 | 11.77 | 8.19 | 9.76 | 9.22 | 9.31 | 8.45 | 9.30 |
Sentiment & Analyst Ratings
Generac Holdings (GNRC) currently exhibits a generally positive market sentiment driven by strong Q2 2026 earnings beats and robust growth prospects in the commercial and industrial segments, especially the AI data center market. Despite some concerns about valuation and insider selling, analyst consensus remains favorable with significant upside in price targets, reinforcing investor confidence in the medium term.
Analyst Recommendations
Risk Assessment
Generac Holdings displays strong liquidity and moderate leverage, supported by recent robust earnings and revenue growth, particularly driven by expanding demand in data centers. While the company faces product safety legal risks and competitive pressure in the industrial machinery sector, its financial health and operational momentum present a favorable outlook from an investor standpoint.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q2 2026
Quick Ratio
Latest Quarter: Q2 2026
Debt-to-Equity
Latest Quarter: Q2 2026
Debt-to-Assets
Latest Quarter: Q2 2026
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 2.04 | 2.03 | 2.03 | 2.18 | 2.00 | 1.97 | 1.97 | 2.03 |
| Quick Ratio | 1.00 | 0.99 | 1.00 | 1.02 | 0.88 | 0.89 | 0.97 | 0.96 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.52 | 0.49 | 0.51 | 0.54 | 0.62 | 0.60 | 0.59 | 0.69 |
| Debt-to-Assets | 0.26 | 0.24 | 0.24 | 0.25 | 0.29 | 0.29 | 0.29 | 0.32 |
Liquidity Assessment
Current Ratio: 2.04(Strong)
Quick Ratio: 1.00(Strong)
The company has strong liquidity with sufficient short-term assets to cover liabilities.
Solvency Assessment
Debt-to-Equity: 0.52(Moderate)
Debt-to-Assets: 0.26(Low)
The company maintains a balanced capital structure with manageable debt levels.
Frequently Asked Questions about GNRC
AI Answers: Common Questions About GNRC
Get AI-powered answers to the questions investors ask most about Generac Holdings Inc.
Generac is a good buy for long-term investors due to 10.6% revenue growth, 92% EPS increase year-over-year, and margin expansion to 44.5% gross and 17.9% operating margins. However, short-term traders should be cautious given bearish technical signals and price near $197 below key moving averages.
Selling is advisable in the short term if price breaks below critical support near $190, as technical momentum is bearish with RSI near oversold and volume confirming selling pressure. Medium-term holders should monitor valuation and execution risks before deciding.
Key risks include raw material cost inflation, product safety recalls and lawsuits, cyclical industrial demand, and execution challenges in expanding data center operations.
Analyst consensus price targets average around $285-$287, implying 40-47% upside from current levels, supported by backlog growth and margin improvements.
The stock trades at a premium P/E of 28.61 and high EV/EBITDA multiples relative to peers, justified by strong earnings growth and commercial segment expansion but vulnerable to multiple compression if growth slows.
Fundamentals are strong with sequential revenue growth of 10.7% from Q1 to Q2 2026, EPS nearly doubling to $2.44, and improving margins driven by operational efficiencies and favorable product mix.
Technically, GNRC is in a bearish downtrend below 50- and 200-day SMAs, with RSI near oversold and strong ADX confirming momentum. Support near $190-$195 is critical; failure to hold may lead to further declines toward $170.
Catalysts include continued strong earnings beats, expansion of data center backlog, capacity investments, and potential margin improvements from operational efficiencies.
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