The quarter beat on revenue but missed on reported EPS. Revenue reached $11.10 billion versus published expectations of roughly $10.79 billion, while diluted EPS was $2.47 versus about $3.17 consensus. That leaves the headline earnings scorecard offsetting rather than a clean beat.
| Metric | Q2 2026 | Q2 2025 | Change / comparison |
|---|---|---|---|
| Total revenue | $11.104B | $9.111B | +22% (Financial Highlights) |
| Organic revenue | $10.149B | $9.068B | +12% (Organic Revenues) |
| Diluted EPS | $2.47 | $1.86 | +33% (Financial Highlights) |
| Adjusted EBITDA | $1.250B | $0.770B | +62% (Adjusted EBITDA) |
| Adjusted EBITDA margin | 11.3% | 8.5% | +280 bps (Adjusted EBITDA) |
| Adjusted organic EBITDA margin | 11.2% | 7.8% | +340 bps (Adjusted Organic EBITDA) |
| Free cash flow | $5.107B | $0.194B | +$4.913B (Free Cash Flow) |
| Orders | $24.2B | — | +88% organically (Second Quarter Highlights) |
Underlying operating performance was materially better than the EPS headline suggests. Organic growth, adjusted EBITDA, margins, orders, and free cash flow all accelerated sharply. Power delivered 19.1% organic EBITDA margin, up 320 basis points, while Electrification reached 19.1%, up 700 basis points organically. The core execution signal is therefore strong, even though Wind deteriorated to a 13.6% EBITDA loss from a 7.3% loss a year earlier. (Organic Revenues, EBITDA, and EBITDA Margin by Segment)
The most important surprise was the size of the guidance increase. Full-year revenue guidance moved to $45.5–$46.5 billion from $44.5–$45.5 billion, while free cash flow guidance rose to $11.5–$12.5 billion from $6.5–$7.5 billion. Power's organic revenue growth outlook also increased to 18%–20% from 16%–18%; adjusted EBITDA margin guidance was unchanged at 12%–14%. (2026 Guidance)
The mix remains two-sided: Power and Electrification are carrying the business while Wind worsens. Power orders rose 134% organically and Electrification orders rose 66%, with Electrification's book-to-bill around 1.7. Against that, Wind orders fell 40% organically and its EBITDA loss widened by $110 million year over year. The raised company outlook indicates management believes the first two segments more than offset the continuing Wind drag, but the EPS miss prevents calling this an unambiguous earnings beat. (Power Performance; Electrification Performance; Wind Performance; 2026 Guidance)
Net read: operational momentum improved, but the market received a mixed earnings package rather than a clean upside surprise. Revenue and cash guidance moved above the prior framework, and the order backlog expanded to $176 billion, but the reported EPS shortfall is material relative to published expectations. With the direction of demand and prior guidance increases already partly known, the incremental news is mainly the magnitude of the cash-flow upgrade and the continued widening gap between the strong Power/Electrification businesses and troubled Wind. (Second Quarter Highlights; 2026 Guidance)
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