Generac Holdings Inc. (NYSE:GNRC) shares are up about 33% during Thursday’s premarket session as investors react to a data-center supply agreement with Amazon.com, Inc. (NASDAQ:AMZN) disclosed on Wednesday.

Amazon Data Center Generator Deal

Generac stated that it issued Amazon warrants to purchase up to 1.69 million Generac shares at around $200.93 per share.

As per the deal, Amazon’s wholly owned subsidiary, Amazon.com NV Investment Holdings LLC, received a warrant to purchase up to 1,693,745 shares of Generac common stock at $200.9266 per share.

This represents a potential investment of as much as $8 billion. Of the total warrant shares, 307,954 vested immediately, while the remaining shares will vest through multiple tranches based on aggregate gross payments, after certain offsets, made by Amazon and its affiliates to Generac and its global affiliates for backup power generators supplied to Amazon data centers.

At the time the warrant was issued, Generac and Amazon also entered into a long-term supply agreement, with initial generator deliveries expected to total $2.4 billion in 2027 and 2028.

Subject to the applicable vesting requirements and other conditions under the Warrant and Transaction Agreement, Amazon may exercise the warrant, in whole or in part, through either a cash or cashless exercise on or before September 16, 2033.

GNRC Earnings Preview And Analyst Price Targets

Looking further out, the next major catalyst for the stock arrives with the October 28, 2026 (estimated) earnings report.

  • EPS Estimate: $2.44 (Up from $1.83 YoY)
  • Revenue Estimate: $1.33 Billion (Up from $1.11 Billion YoY)
  • Valuation: P/E of 40.3x (Indicates a premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $289.71. Recent analyst moves include:

  • UBS: Buy (Raises Target to $340.00) (August 4)
  • Stifel: Buy (Raises Target to $285.00) (July 30)
  • Canaccord Genuity: Buy (Lowers Target to $275.00) (July 30)

GNRC ETF Exposure And Passive Fund Flow Risk

  • Corgi Battery Energy Storage Systems ETF (NASDAQ:WATS): 3.59% Weight
  • Matrix Advisors Value ETF (NYSE:MAVF): 3.74% Weight

Significance: Because GNRC carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

GNRC Stock Price Activity: Generac shares were up 33.06% at $233.01 during premarket trading on Thursday, according to Benzinga Pro data.

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