Key Takeaways Q2 adjusted earnings per share reached $2.02, surpassing the analyst estimate of $1.86 Quarterly revenue climbed to $12.63 billion, representing a 24% year-over-year increase an
GE Aerospace executed the textbook beat-and-raise performance investors typically reward. Yet paradoxically, shares declined in the aftermath.
$GE AEROSPACE Q2’26 EARNINGS HIGHLIGHTS
Revenue: $12.63B (Est. $11.86B)
Raises FY26 Guide:
Q2 Segment Revenue:
— Wall St Engine (@wallstengine) July 16, 2026
The aerospace giant reported second-quarter adjusted earnings of $2.02 per share, exceeding Wall Street’s $1.86 projection by $0.16. Adjusted quarterly revenue reached $12.63 billion versus the $11.81 billion consensus expectation. This represents a substantial 24% increase from the $10.15 billion reported during the comparable quarter last year.
Shares of GE dropped 2.1% to $352.80 in the immediate aftermath of the disclosure.
GAAP-based total revenue increased 21% year-over-year to $13.35 billion. The company’s order book reached $16.5 billion, marking a 17% uptick compared to the prior year — maintaining a healthy lead over actual sales figures.
Looking ahead to fiscal 2026, GE Aerospace elevated its adjusted earnings per share guidance to a range of $7.65–$7.85, compared to the previous $7.10–$7.40 bracket. The new midpoint of $7.75 exceeds the Street consensus estimate of $7.56.
Operating profit expectations were upgraded to $10.55–$10.75 billion from the earlier $9.85–$10.25 billion range. The company also raised its free cash flow projection to $8.9–$9.2 billion, improving from the prior $8.0–$8.4 billion guidance.
Full-year revenue expansion is now anticipated in the “high-teens” percentage territory, an upgrade from the previous 10%–12% forecast.
Chief Executive H. Lawrence Culp, Jr. attributed the strong performance to commercial services momentum. “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 highlighted record-setting internal shop visit volumes and a 31% surge in total engine deliveries during the first six months.
The Commercial Engines & Services division generated revenue of $9.73 billion, reflecting a 27% year-over-year expansion. Services revenue advanced 26% while equipment revenue jumped 30%. This segment now projects approximately 20% full-year revenue growth, an improvement from the mid-teens percentage previously communicated.
The Defense & Propulsion Technologies division saw revenue increase 16% to $3.44 billion. Segment operating profit rose 18% to $475 million, with margins expanding by 30 basis points to reach 13.8%.
GE Aerospace touched a 52-week peak in early July. Prior to Thursday’s session, the stock had advanced 17% year-to-date and gained 36% over the trailing twelve months. The shares had also rebounded more than 30% from post-Iran-conflict lows under $275.
The earnings announcement was scheduled early to accommodate the forthcoming Farnborough Air Show, where aerospace manufacturers traditionally receive substantial attention from airline operators and leasing companies.
RBC analysts, under the direction of Ken Herbert, had indicated before the results that market participants would focus on medium-term outlook commentary, particularly regarding aircraft fleet retirements, engine production schedules, and supply chain developments.
For 2028, GE Aerospace’s internal operating profit objective sits at $11.5 billion. However, Wall Street analysts are currently projecting $13.2 billion — a significant spread that demonstrates how much additional upside the market has already factored into valuations.
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