Key Takeaways
- Shares of Generac exploded 35% higher in Thursday’s premarket session following disclosure of a major generator supply contract with Amazon
- The contract includes initial shipments worth $2.4 billion scheduled for delivery during 2027 and 2028
- As part of the arrangement, Amazon secured an equity warrant providing rights to purchase up to 1.69 million GNRC shares at approximately $201 per share
- Amazon has been identified as Generac’s second major hyperscale data center client
- Following the disclosure, Barclays maintained its Equalweight stance with a $278 target price
Shares of Generac (GNRC) skyrocketed 35% during Thursday’s premarket hours following the company’s announcement of a major long-term supply contract with Amazon to provide backup power generators for its data center operations. Trading around $235 before the opening bell, the stock was positioned approximately 72% above its most recent closing price of $136.37.
Under the terms of the arrangement, initial generator shipments carry a combined value of $2.4 billion, with deliveries scheduled throughout 2027 and 2028. This translates to approximately $1.2 billion annually, representing a significant portion when compared against Generac’s $4.2 billion in total revenue for 2025.
Details of the partnership were made public through a filing with the Securities and Exchange Commission on Wednesday evening. The documentation names Amazon Data Services as the customer—the same entity Generac previously described as its “second hyperscale customer” during a July announcement without providing identification.
The transaction includes an equity component granting Amazon warrant rights to acquire up to 1.69 million shares of GNRC at approximately $201 per share. This stake represents roughly 2.6% on a fully diluted basis.
Approximately 308,000 shares under the warrant vested immediately when the agreement was executed. The remaining shares will vest progressively as Amazon and related entities reach cumulative purchase thresholds for Generac generators, extending up to $8 billion in total spending. Complete vesting is scheduled to occur by 2033.
Expanding Footprint in Data Center Market
Generac’s presence in the data center sector has been expanding steadily. During the second quarter of 2026, the company reported a 29% increase in commercial and industrial sales, while its data center order backlog had already reached approximately $1.6 billion prior to this Amazon announcement.
The scope of the Amazon partnership extends internationally, encompassing data center facilities located beyond U.S. borders.
Regarding financial performance, Generac exceeded profit projections in Q2, delivering adjusted earnings of $2.91 per share compared to analyst expectations of $2.00. Revenue totaled $1.17 billion, falling slightly short of the $1.18 billion consensus estimate. A refund related to tariffs played a role in the earnings outperformance.
Wall Street Weighs In
Barclays maintained its Equalweight recommendation on GNRC following the announcement, keeping its price objective steady at $278.
Cantor Fitzgerald adopted a more bullish stance, elevating its price target to $333 while citing the company’s momentum in the data center business.
Needham affirmed its Buy rating alongside a $282 price target. The firm noted the tariff refund as a contributing factor behind the robust Q2 performance.
GNRC finished 2025 at $136.37 and had climbed roughly 28% through Wednesday’s regular trading session before the after-hours revelation. The stock had previously touched a 52-week peak of $296.44 on June 25 before declining approximately 41% through Tuesday’s close.
According to InvestingPro’s evaluation, GNRC appears to be trading beneath its Fair Value assessment, with shares carrying a P/E multiple of 39.97 and a market capitalization of $10.33 billion.
Barclays maintained its $278 price objective after the deal disclosure, representing a more conservative outlook relative to Cantor Fitzgerald’s $333 projection.
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