GE Aerospace delivered exactly the beat-and-raise quarter the market was looking for. Then the stock went down anyway.
$GE AEROSPACE Q2’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $12.63B (Est. $11.86B) 🟢
🔹 Adj. EPS: $2.02 (Est. $1.86) 🟢
🔹 Adj. FCF: $3.03B (Est. $1.98B) 🟢Raises FY26 Guide:
🔹 Adj. EPS: $7.65-$7.85 (Est. $7.56) 🟢Q2 Segment Revenue:
🔹 Commercial Engines & Services: $9.73B (Est.…— Wall St Engine (@wallstengine) July 16, 2026
The company posted Q2 adjusted EPS of $2.02, clearing the Wall Street estimate of $1.86 by $0.16. Adjusted revenue came in at $12.63 billion against a consensus of $11.81 billion. That’s a 24% jump from $10.15 billion in the same period last year.
GE stock fell 2.1% to $352.80 shortly after the results were released.
Total GAAP revenue rose 21% year-over-year to $13.35 billion. Orders landed at $16.5 billion, up 17% from a year ago — staying well ahead of sales.
For fiscal 2026, GE Aerospace raised its adjusted EPS outlook to $7.65–$7.85, up from $7.10–$7.40. The midpoint of $7.75 comes in above the analyst consensus of $7.56.
Operating profit guidance moved up to $10.55–$10.75 billion from $9.85–$10.25 billion. Free cash flow guidance increased to $8.9–$9.2 billion, from a prior range of $8.0–$8.4 billion.
Revenue growth is now expected in the “high-teens” percentage range for the full year, up from a prior forecast of 10%–12%.
CEO H. Lawrence Culp, Jr. pointed to commercial services as the engine behind the results. “GE Aerospace delivered a strong second quarter with revenue and EPS both up more than 20% driven by robust commercial services growth,” he said.
He also flagged record internal shop visit output and 31% growth in total engine deliveries in the first half.
The Commercial Engines & Services segment posted revenue of $9.73 billion, up 27% year-over-year. Services revenue grew 26% and equipment revenue climbed 30%. That segment now guides for roughly 20% full-year revenue growth, up from mid-teens previously.
Defense & Propulsion Technologies revenue rose 16% to $3.44 billion. Operating profit in that segment increased 18% to $475 million, with margins expanding 30 basis points to 13.8%.
GE Aerospace had hit a 52-week high in early July. Coming into Thursday, the stock was up 17% year-to-date and 36% over the past 12 months. It had also recovered more than 30% from post-Iran-war lows below $275.
The earnings were released early in the cycle to make room for the upcoming Farnborough Air Show, where aerospace companies typically get significant attention from airlines and fleet operators.
Analysts at RBC, led by Ken Herbert, had flagged ahead of results that investors would be watching mid-term outlook commentary, including aircraft retirements, engine delivery timelines, and supply chain updates.
For 2028, GE Aerospace’s own operating profit target stands at $11.5 billion. Wall Street is already modeling $13.2 billion — a gap that shows how much the market is pricing in continued outperformance.
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