CNBC Investing Club: Cramer's Morning Take on GE Vernova 10/28/26

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0:56slash market update podcast or find Schwab Market Update wherever you get your podcasts. Jim Cramer here to share a short preview of my take on the market from today's members-only CNBC Investing Club morning meeting. Join the club for full access to the morning meeting every day at 1020 a.m. Visit cnbc.com slash morning take to sign up today. That's one word, morning take. Well, we saw strong earnings from Vernova as well, with revenue up 27 % year-over-year, handily beating estimates, earnings per share$4.81. We were looking for about$4. Orders up 96 % year-over-year. Power, just strong beat, great margins, strong orders, higher volume and price.

1:45Lots to like here. And yet, what was the line that knocked us down? Yeah, I know. It's almost chimerical. Yeah, something about power orders in 27, maybe closer to the third quarter, fourth quarter of 26 run rate. He's sold out. I'm not so sure. He's sold out. I'm going to try to get more visibility in this, but I will tell people who missed it when we bought it around 820, this is an opportunity. Yeah. No issues from customers canceling projects due to financing concerns. They say on the call, the customer archetype that they're serving have very strong balance sheets, continue to lean in with us.

2:24They did a$9 billion acquisition. This trench group have cash, half debt, global leader in high voltage grid equipment. This is bushings, instrument transformers and coils. They just have strong conviction in the high voltage market, not just from data centers who require large electricity loads and increasingly need more efficient high voltage equipment, but also global utilities as that infrastructure gets built out. Electrification, maybe a little bit of a miss here in the quarter. Wind is kind of like a, not really a focal point. Yeah, here's why I'm such wind. But they raised the four-year outlaw.

3:00Cash flow was great. They bought back a good chunk of stock, not just in Q3, but October month-of-date, which I think is always worth pointing out,$1.3 billion worth. Yeah, look, I spoke to Scott this morning, and he was the most bullish. that have heard him. I have criticized him in the past of saying, listen, you talk too much gigawatt, not enough earnings. Talk cash flow, not enough margins. They missed last quarter on earnings. Yeah, and this was all different. This was really the most straightforward quarter. Very clear visibility, 31-32. You can't get one. The electrification is two-thirds.

3:36Data center is one-third. That's the right mix because we have a grid that is pathetic. This was a beautiful quarter. Now, people say, well, Jim, it can't be a beautiful quarter because it's down 23. And I come back and say, look, if I'm going to take my cue from this, then I should just not be in this business. This is the old Karen Kramer rule. My ex-wife I traded with, she would say, oh, so you think it's bad because it's down 23? Well, aren't you a genius? What she really was saying was that there are times when stocks are priced wrong. This is priced wrong. This is a great core. All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet, or another medium.

4:23No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment, or strategy. To view the full CNBC Investing Club disclaimer, please visit cnbc.com forward slash investing club disclaimer.

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