Quick Summary
- GE Aerospace reported Q2 EPS of $2.02, surpassing analyst expectations of $1.86
- Quarterly revenue reached $12.63 billion, reflecting a 24% year-over-year increase and exceeding the $11.81 billion forecast
- Company increased full-year EPS guidance to $7.65–$7.85 from previous range of $7.10–$7.40
- New orders totaled $16.5 billion, marking a 17% year-over-year gain
- Despite strong performance, GE shares declined 2.1% to $352.80 following the earnings announcement
GE Aerospace reported the kind of strong quarterly performance investors typically reward. Yet shares moved lower in response.
The aerospace giant announced Q2 adjusted earnings per share of $2.02, exceeding analyst forecasts of $1.86 by sixteen cents. Adjusted quarterly revenue registered at $12.63 billion compared to expectations of $11.81 billion. This represents a substantial 24% increase from the $10.15 billion reported during the comparable quarter last year.
Shares of GE declined 2.1% to $352.80 in trading following the quarterly disclosure.
GAAP revenue on a total basis climbed 21% year-over-year to $13.35 billion. The company secured $16.5 billion in new orders, representing a 17% uptick from the prior year — maintaining a healthy lead over actual sales.
Company Elevates Full-Year Projections
Looking at fiscal 2026, GE Aerospace upgraded its adjusted EPS projection to a range of $7.65–$7.85, representing an improvement from the previous $7.10–$7.40 range. The midpoint of $7.75 sits above the Street consensus of $7.56.
Operating profit expectations were raised to $10.55–$10.75 billion, compared to the earlier guidance of $9.85–$10.25 billion. The company also lifted its free cash flow forecast to $8.9–$9.2 billion from the prior $8.0–$8.4 billion range.
Full-year revenue growth is now projected in the “high-teens” percentage range, an upgrade from the previous 10%–12% forecast.
Chief Executive H. Lawrence Culp, Jr. highlighted commercial services as the primary driver. “GE Aerospace delivered a strong second quarter with revenue and EPS both up more than 20% driven by robust commercial services growth,” he stated.
Culp also emphasized record-setting internal shop visit output and a 31% increase in total engine deliveries during the first six months.
The Commercial Engines & Services division generated revenue of $9.73 billion, up 27% from the year-ago period. Services revenue expanded 26% while equipment revenue advanced 30%. This segment now projects approximately 20% revenue growth for the full year, an increase from the mid-teens guidance issued previously.
Defense Business Showing Strength
The Defense & Propulsion Technologies division saw revenue climb 16% to $3.44 billion. Operating profit within this segment rose 18% to $475 million, with margin expansion of 30 basis points reaching 13.8%.
GE Aerospace shares touched a 52-week peak in early July. Prior to Thursday’s session, the stock had gained 17% year-to-date and was up 36% over the trailing twelve months. The shares had also bounced back more than 30% from post-Iran-conflict lows under $275.
The company released earnings ahead of its typical schedule to accommodate the approaching Farnborough Air Show, a major industry event where aerospace manufacturers attract substantial interest from airlines and aircraft operators.
RBC analysts, headed by Ken Herbert, had indicated before the results that market participants would closely monitor mid-term outlook commentary, particularly around aircraft retirement schedules, engine delivery projections, and supply chain developments.
For 2028, GE Aerospace has set an internal operating profit target of $11.5 billion. However, Wall Street analysts are currently projecting $13.2 billion — a significant variance that reflects market expectations for sustained above-target performance.
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