GNRC AI Stock Analysis – Buy, Hold, or Avoid?
Generac Holdings Inc. (GNRC)
Fundamentals
Generac Holdings Inc. (GNRC) demonstrates robust top-line growth and operational improvement following a challenging period in 2025, with noticeable earnings recovery in the most recent quarter. Margins have shown both compression and rebound, reflecting active cost management amidst shifting demand dynamics.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
12.44% YoY
Q1 2026
Net Income
67.09% YoY
Q1 2026
Net Margin
Q1 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q1 2026
Net Income Growth YoY
Latest Quarter: Q1 2026
Revenue Per Share Growth YoY
Latest Quarter: Q1 2026
EPS Growth YoY
Latest Quarter: Q1 2026
Book Value Per Share Growth YoY
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.1B | 1.1B | 1.1B | 1.1B | 942.1M | 1.2B | 1.2B | 998.2M |
| Revenue Growth YoY | +12.44% | -11.60% | -5.05% | +6.31% | +5.94% | +16.09% | +9.61% | -0.22% |
| Net Income | 73.3M | -24.5M | 66.2M | 74.0M | 43.8M | 128.9M | 113.7M | 59.1M |
| Net Income Growth YoY | +67.09% | -118.99% | -41.83% | +25.21% | +86.19% | +34.27% | +88.53% | +36.28% |
| EPS | $1.25 | -$0.42 | $1.14 | $1.27 | $0.74 | $2.18 | $1.91 | $0.99 |
| EPS Growth YoY | +68.92% | -119.27% | -40.31% | +28.28% | +89.74% | +37.11% | +94.90% | +41.43% |
Profitability Metrics
Technical Analysis
GNRC is exhibiting a strong technical uptrend supported by a golden cross and price holding above key moving averages. Momentum indicators like MACD and RSI are neutral to bullish, while support and resistance levels outline a trading range with upside potential near $294. Recent mild bearish candlestick patterns suggest short-term caution within an overall advancing phase.
No extreme reading
Price in uptrend
Range-bound market
50 above 200 - bullish
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. (GNRC) demonstrates robust top-line growth and operational improvement following a challenging period in 2025, with noticeable earnings recovery in the most recent quarter. Margins have shown both compression and rebound, reflecting active cost management amidst shifting demand dynamics.
Latest Earnings
Q1 2026 Earnings (Mar 31, 2026)
Earnings Per Share (EPS)
Actual
$1.80
Estimated
$1.33
Surprise
+$0.47
Surprise %
+35.34%
Revenue
Actual
$1.06B
Estimated
$1.05B
Surprise
+$7.3M
Surprise %
+0.69%
Historical Earnings
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $1.80 | $1.61 | $1.83 | $1.65 | $1.26 | $2.80 | $2.25 | $1.35 |
| EPS (Estimated) | $1.33 | $1.81 | $2.25 | $1.33 | $0.99 | $2.49 | $1.95 | $1.24 |
| EPS Surprise | +$0.47 | -$0.20 | -$0.42 | +$0.32 | +$0.27 | +$0.31 | +$0.30 | +$0.11 |
| % Diff | +35.3% | -11.0% | -18.7% | +24.1% | +27.3% | +12.4% | +15.4% | +8.9% |
| Revenue | ||||||||
| Revenue (Actual) | $1.06B | $1.09B | $1.11B | $1.06B | $942.12M | $1.23B | $1.17B | $998.2M |
| Revenue (Estimated) | $1.05B | $1.16B | $1.16B | $1.21B | $1.06B | $1.25B | $1.23B | $999.97M |
| Revenue Surprise | +$7.3M | -$69.1M | -$46.25M | -$152.46M | -$121.97M | -$10.87M | -$59.66M | -$1.77M |
| % Diff | +0.7% | -6.0% | -4.0% | -12.6% | -11.5% | -0.9% | -4.8% | -0.2% |
Valuation
Generac Holdings Inc. currently trades at a notable premium relative to the Industrials sector, driven by its strong growth trajectory and strategic positioning in data center power solutions. While valuation multiples are elevated, robust revenue and earnings growth, coupled with positive analyst sentiment and optimistic price targets, support a growth-oriented investment thesis. However, risks remain due to high multiples and some recent operational challenges.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 39.07 | -81.17 | 36.71 | 28.19 | 42.79 | 17.78 | 20.80 | 33.63 |
| Price to Sales | 10.77 | 7.28 | 8.75 | 7.93 | 7.94 | 7.48 | 8.05 | 7.99 |
| Price to Book | 4.27 | 3.02 | 3.69 | 3.27 | 3.03 | 3.70 | 3.92 | 3.36 |
| Enterprise Value to EBITDA | 74.17 | 221.31 | 74.47 | 62.53 | 72.01 | 49.97 | 51.15 | 65.28 |
| Enterprise Value to Revenue | 11.77 | 8.19 | 9.76 | 9.22 | 9.31 | 8.45 | 9.30 | 9.48 |
Sentiment & Analyst Ratings
Generac Holdings Inc. (GNRC) enjoys a generally positive sentiment driven by strong Q1 earnings, strategic facility expansions, and robust demand from data centers. While recent insider sales and product recalls introduce some caution, the prevailing sentiment leans bullish with notable analyst price target upgrades. Retail interest and social media buzz have also increased, reflecting optimism around GNRC's growth prospects, particularly in commercial and industrial segments.
Analyst Recommendations
Risk Assessment
Generac Holdings Inc. demonstrates a solid liquidity position with a current ratio above 2, indicating good short-term asset coverage, though its quick ratio near 1 suggests tighter immediate liquidity once inventory is excluded. The company maintains moderate leverage with a debt-to-equity below 0.5 and a conservative debt-to-assets ratio, supporting manageable long-term obligations despite some margin pressure from increased commercial segment sales. However, execution risks in expanding its commercial and industrial business, sector competition, and sensitivity to power outage demand cycles pose notable risks for investors.
Liquidity & Solvency
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.
GNRC is a good buy for medium- and long-term investors seeking growth, despite a high P/E of 87.5 and price near all-time highs ($279.15, 52W high $294.18). The company's earnings and margin recovery, strong demand in data centers, and positive sentiment support the case, but short-term traders should be cautious of possible pullbacks.
Unless your thesis has changed or you are highly risk-averse, there is little reason to sell now: fundamentals are improving, technicals remain bullish above key moving averages, and sentiment is positive. However, if you are uncomfortable with valuation risk or expect near-term volatility, trimming or rebalancing may be prudent.
Key risks include the elevated valuation (P/E 87.5, high EV/EBITDA), reliance on weather-driven residential demand, and execution risks in new commercial/data center markets. Liquidity is strong (current ratio >2), but quick ratio just under 1 and debt at 24% of assets mean financial discipline is needed as the company expands.
Technical resistance is near the 52-week high at $294.18, with analyst price targets averaging $278-$281 and a high of $335. Support is strong near $270 and $262.76. Medium-term upside is to $294-$303 if momentum continues, with downside risk to $254 on a pullback.
The stock is overvalued relative to sector norms, with a P/E of 87.5 and elevated P/S and EV/EBITDA multiples, reflecting high growth expectations. This premium is justified only if recent earnings momentum and strategic expansion continue; otherwise, valuation could compress.
Fundamentally, GNRC is strong: Q1 2026 revenue grew 12.5% YoY, margins have rebounded (gross margin 38.7%, net margin 6.9%), and liquidity is solid (current ratio >2, debt/equity ~0.5). The business is well-positioned for secular growth in power reliability and energy storage.
Technical analysis is bullish medium-term, with a golden cross (50 SMA above 200 SMA), price above all major moving averages, and RSI at 58 (neutral). Immediate upside is capped by resistance at $294, with support at $270 and $262; short-term traders should watch for confirmation of a breakout or pullback.
Key catalysts include upcoming earnings reports, further data center or commercial supply agreements, and successful integration of recent acquisitions. Watch for margin trends, product launches, and macro events like severe weather or grid reliability issues that could spur demand.
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