On September 17, Generac surged 29.62% in regular trading, trading at $215.57/share, with turnover of $252 million. The sharp rally was driven by the announcement of a long-term supply agreement with Amazon to provide backup power generators for data centers.

Under the agreement, initial deliveries are expected during 2027 and 2028, with the first phase valued at approximately $2.4 billion. The total deal could generate up to $8 billion in revenue for Generac and its affiliates. As part of the transaction, Generac issued warrants to an Amazon subsidiary allowing it to purchase up to approximately 1.69 million shares at an exercise price of $200.9266 per share, representing roughly 3% of outstanding shares. Approximately 307,954 warrant shares vested immediately, with the remainder vesting in tranches contingent upon Amazon payment milestones.

Following the announcement, Canaccord Genuity raised its price target on Generac from $275 to $375, maintaining a Buy rating. The deal follows Generac's earlier announcement in July of a supply agreement with a second hyperscale data center operator.

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