Generac Stock Soars on $8 Billion Amazon Deal

Generac Holdings (GNRC) stock skyrocketed over 30% in pre-market trading after securing a massive long-term agreement to supply backup generators for Amazon's (AMZN) data centers.

The deal, which could reach $8 billion in total purchases, includes initial deliveries worth around $2.4 billion in 2027 and 2028.

As part of the arrangement, Generac issued a warrant allowing an Amazon affiliate to acquire up to 1.69 million shares, with some vesting immediately and others tied to future generator purchases.

Analysts believe the agreement will support Generac's manufacturing expansion and provide visibility into future demand, potentially leading to earnings benefits as deliveries ramp up.