Generac stock retreats after Amazon power deal

Generac stock retreated to USD 199.42 on Nasdaq at 4:00 p.m. ET on September 23, 2026, a decline of 3.27 percent from the previous close of USD 206.17. The move follows an Amazon power agreement that gives Generac a multi-year data center revenue opportunity.

Amazon adds USD 2.4 billion

On September 16, 2026, Generac entered a long-term supply agreement with Amazon for backup generators serving data centers. As The Globe and Mail reported, initial deliveries are expected to total USD 2.4 billion in 2027 and 2028, while the broader arrangement can reach up to USD 8 billion in payments tied to generator purchases.

The transaction also includes a warrant for up to 1,693,745 Generac shares at an exercise price of USD 200.9266. That structure links part of the potential equity dilution to the scale of Amazon's future orders rather than to an immediate cash raise.

Quarterly earnings raise the bar

Generac's second-quarter 2026 adjusted EPS came to USD 2.91, compared with USD 1.65 in the prior-year quarter. According to Zacks, the result exceeded consensus of USD 1.95, while net sales rose 11 percent year over year to USD 1.173 billion.

The commercial and industrial business supplied the stronger operating signal, with Q2 revenue of USD 556.5 million, up 29 percent year over year. Data center backlog reached USD 1.6 billion, giving the Amazon agreement a larger strategic setting than a single customer contract.

Generac also maintained 2026 net sales growth guidance in the mid-to-high teens, including a 2 percent favorable contribution from foreign currency, acquisitions and divestitures. For investors, the key tension is visible in the contrast between the new data center opportunity and the valuation reset implied by a USD 199.42 market price.

Stock remains below yearly high

Generac's September 23 price sat within a 52-week range of USD 134.80 to USD 296.44. Its market capitalization was USD 11,739,596,154 on the same date, while the current price remained USD 97.02 below the yearly high.