Core Viewpoint - Generac Holdings has experienced a significant stock surge of 56.65% year-to-date, attributed to its strategic pivot towards data centers, which is yielding positive results [2][8]. Financial Performance - In Q4 2026, Generac reported revenue of $1.09 billion, missing the expected $1.18 billion, and adjusted earnings of $1.61 per share, below the $1.80 estimate. The company also recorded a GAAP net loss of $24 million due to a $104.5 million legal settlement [3]. - Residential sales declined by 23% year-over-year to $572 million, primarily due to weak power outage activity [4]. Data Center Strategy - CEO Aaron Jagdfeld indicated a fundamental shift in the company's position within the data center market, highlighting accelerated momentum and the potential for significant backlog growth from hyperscale customers [5]. - The commercial and industrial segment, which includes data center power solutions, grew by 10% in Q4 to $400 million. Generac is expanding its manufacturing capacity to meet anticipated multi-year growth [5][6]. Future Outlook - Management's guidance for 2026 anticipates mid-teens revenue growth, with commercial and industrial sales expected to increase by approximately 30% driven by data center demand and the Allmand acquisition. Residential sales are projected to grow around 10% if power outage activity normalizes [7][8]. - Generac has initiated a $500 million share repurchase program, reflecting confidence in its future growth prospects [8].