Quick Summary
- Q2 adjusted earnings per share reached $2.02, surpassing analyst estimates of $1.86
- Quarterly revenue totaled $12.63 billion, representing a 24% year-over-year increase and exceeding the $11.81 billion forecast
- 2026 EPS guidance increased to a range of $7.65–$7.85, compared to the previous outlook of $7.10–$7.40
- Total orders reached $16.5 billion, marking a 17% year-over-year surge
- Shares of GE declined 2.1% to $352.80 following the earnings announcement
GE Aerospace reported impressive second-quarter results that exceeded Wall Street’s expectations and upgraded its full-year forecast. Yet investors responded by pushing shares lower.
The aerospace giant announced adjusted earnings per share of $2.02 for the quarter, handily beating analyst projections of $1.86 by sixteen cents. Adjusted quarterly revenue reached $12.63 billion, surpassing the Street’s estimate of $11.81 billion. This represents a substantial 24% increase compared to the $10.15 billion recorded in the year-ago quarter.
Despite these strong results, GE shares retreated 2.1% to $352.80 in trading following the announcement.
Total GAAP revenue climbed 21% year-over-year to $13.35 billion. Order intake hit $16.5 billion, reflecting a 17% annual increase and continuing to outpace revenue generation.
Company Raises Full-Year Projections
Looking ahead to fiscal 2026, GE Aerospace upgraded its adjusted EPS forecast to a range of $7.65–$7.85, versus the prior guidance of $7.10–$7.40. The new midpoint of $7.75 exceeds the Wall Street consensus estimate of $7.56.
Operating profit expectations were revised upward to $10.55–$10.75 billion from the earlier range of $9.85–$10.25 billion. The company also boosted its free cash flow projection to $8.9–$9.2 billion, up from the previous outlook of $8.0–$8.4 billion.
Full-year revenue growth is now anticipated to land in the high-teens percentage range, a notable upgrade from the prior forecast calling for 10%–12% growth.
Chief Executive H. Lawrence Culp, Jr. attributed the strong performance to the commercial services division. “GE Aerospace delivered a strong second quarter with revenue and EPS both up more than 20% driven by robust commercial services growth,” he noted.
Culp also highlighted record-breaking internal shop visit output and impressive 31% growth in total engine deliveries during the first six months of the year.
The Commercial Engines & Services division generated revenue of $9.73 billion, representing a 27% year-over-year gain. Services revenue jumped 26% while equipment revenue surged 30%. This segment now anticipates approximately 20% full-year revenue growth, upgraded from the previous mid-teens expectation.
Defense Business Shows Solid Performance
The Defense & Propulsion Technologies segment reported revenue of $3.44 billion, up 16% from the prior year. Operating profit in this division increased 18% to $475 million, with margins improving by 30 basis points to 13.8%.
GE Aerospace reached a 52-week peak in early July. Prior to Thursday’s trading session, shares had gained 17% year-to-date and climbed 36% over the trailing twelve months. The stock had also bounced back more than 30% from post-Iran-conflict lows below the $275 level.
The company released earnings ahead of schedule to accommodate the upcoming Farnborough Air Show, where aerospace manufacturers traditionally attract substantial interest from airline executives and fleet purchasing teams.
RBC analysts, including Ken Herbert, had indicated before the release that market participants would be focused on medium-term outlook details, particularly regarding aircraft retirement schedules, engine production timelines, and supply chain developments.
For 2028, GE Aerospace has established an internal operating profit target of $11.5 billion. However, Wall Street analysts are currently forecasting $13.2 billion—a substantial gap that demonstrates the market’s expectation for sustained outperformance in coming years.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
