Generac signed a long-term Amazon supply deal and warrant tied to data-center generator purchases, sending shares sharply higher.
Why it matters: The agreement gives Generac a direct revenue stream from Amazon's data-center buildout, with initial deliveries expected to total $2.4 billion in 2027 and 2028. It also links more warrant vesting to as much as $8 billion in Amazon-related generator purchases.
- Generac said it entered a transaction agreement with Amazon on Sept. 16, 2026.
- Amazon received a warrant to buy up to 1,693,745 Generac shares at $200.9266 each.
- The warrant vested immediately for 307,954 shares, with more vesting tied to up to $8 billion in Amazon and affiliate generator purchases.
- Initial deliveries of backup generators are expected to total $2.4 billion in 2027 and 2028.
Generac Holdings Inc. said it entered into a transaction agreement with Amazon.com Inc. that combines a long-term supply deal with an equity warrant tied to future purchases. Under the terms disclosed in Generac's filing, Amazon can buy up to 1,693,745 shares of Generac common stock at an exercise price of $200.9266 a share.
The warrant vested immediately for 307,954 shares. Additional vesting is tied to aggregate gross payments from Amazon and affiliates for backup power generators for Amazon data centers, up to $8 billion, according to the filing.
Generac also said initial deliveries of backup generators are expected to total $2.4 billion in 2027 and 2028. The deal gives the company a bigger role in Amazon's data-center power supply as the cloud and AI infrastructure buildout continues.
Investors reacted quickly. Reuters reported the stock surged in early trading on Sept. 17, 2026, while CNBC said the market saw the agreement as a meaningful win tied to data-center power demand.
By the numbers
- $2.4 billion - expected initial deliveries of backup generators in 2027 and 2028
- $8 billion - maximum Amazon and affiliate generator purchases tied to further warrant vesting
- 1,693,745 - maximum number of Generac shares Amazon can buy under the warrant