Can Generac Turn C&I Business Momentum Into a Durable Revenue Engine?

Generac (GNRC) posted 29% commercial and industrial (C&I) sales growth, powered by data center demand, and has locked in $700M in multiyear hyperscale supply deals. The company projects $450M in data center revenues for 2026.

That backlog gives GNRC a visible demand runway, and the $450M 2026 target puts a concrete number on how much of the C&I story rests on data centers. The 29% growth rate shows the segment is accelerating, but the source flags three profit pressures: tariff volatility, unfavorable product mix, and lower C&I margins. Interpretation: revenue momentum and margin quality are pulling in opposite directions, so the stock's reception likely hinges on whether growth translates into earnings.

GNRC is not alone in chasing this demand. Caterpillar (CAT) and Cummins (CMI) are also capitalizing on strong data center power demand, which means GNRC competes for share against two larger names in the same spending cycle. The $700M in multiyear deals suggests GNRC has secured a meaningful foothold, though the competitive overlap keeps pricing and margin pressure in play.