Can Generac Preserve Profitability as Data Center Sales Accelerate?

What happened: Generac's C&I segment is growing on data center demand, and the company finalized a long-term supply agreement with Amazon for backup generators. Key numbers: Q2 2026 C&I revenue $556 million, up 29% year over year. Data center sales over $100 million in Q2. Why it matters: Multiyear hyperscale agreements improve revenue visibility, but rising lower-margin C&I mix pressures gross margin, and management trimmed its 2026 gross margin expectation while keeping EBITDA guidance. Market: -3.4% by next close ($772.70 on Oct 13), +25.7% YTD

Generac's C&I segment is growing on data center demand, and the company finalized a long-term supply agreement with Amazon for backup generators.

Multiyear hyperscale agreements improve revenue visibility, but rising lower-margin C&I mix pressures gross margin, and management trimmed its 2026 gross margin expectation while keeping EBITDA guidance. Market: -3.4% by next close ($772.70 on Oct 13), +25.7% YTD