Amazon's Generac Deal Pumps Stock 34% on Billions in Potential Orders

Generac stock surged about 34% in premarket trading on Thursday after Amazon committed billions of dollars to backup generators for its expanding data centre network. The agreement gives Amazon more than just equipment, with potential payments reaching $8 billion across 2027 and 2028.

In return, Amazon received warrants allowing it to buy as many as 1.69 million Generac shares at about $201 each. This creates an unusual trade-off for shareholders, as the larger the commercial relationship becomes, the larger Amazon's potential equity stake in Generac could become.

Generac expects initial deliveries worth $2.4 billion across 2027 and 2028. Against a base of $4.21 billion in total revenue generated in 2025, this is substantial growth. The company was already building momentum in data centres, with its backlog reaching about $1.6 billion by late July.

Cantor Fitzgerald called the Amazon agreement Generac's 'most important data centre' development since its first hyperscaler win. Baird had already upgraded Generac to Outperform this month, calling the setup an 'attractive risk reward'.