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.

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Generac's stock surged 18.34% after announcing an $8 billion long-term supply agreement with Amazon to provide backup power generators for AI data centers. Amazon will receive a warrant to purchase over 1.6 million Generac shares, with initial deliveries projected at $2.4 billion in 2027-2028. The partnership is seen as a major vote of confidence that could lead to additional deals with other cloud computing companies.

Generac signed a long-term agreement with Amazon to supply backup generators for its data centers, with initial deliveries totaling $2.4 billion in 2027-2028 and potential additional purchases reaching $8 billion through 2033. Amazon received a warrant for up to 1.69 million Generac shares. The deal supports Amazon's expanding AI infrastructure needs, with Generac stock surging 20% on the announcement.

Generac Holdings has secured a major long-term supply agreement with Amazon to provide backup power generators for data centers, with initial deliveries totaling $2.4 billion expected in 2027-2028. The deal includes warrant provisions extending up to $8 billion in qualifying payments. Generac's data center backlog reached $1.6 billion as of July 2026, positioning the company to capitalize on accelerating AI and cloud computing infrastructure demand.