GE Aerospace (GE) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 results with orders up 17% to $16.5B and GAAP revenue up 21% to $13.3B, driven by robust commercial services growth, record internal shop visit output, and higher engine deliveries.

• Adjusted revenue and EPS grew over 20% year-over-year in Q2 2026, with adjusted EPS at $2.02 and GAAP EPS at $2.30.

• Net income from continuing operations increased by $0.4B to $2.4B, with free cash flow up 43% to $3.0B.

• Raised full-year 2026 guidance across all key metrics due to exceptional year-to-date performance, strong backlog visibility, and robust demand.

• Continued investment in next-generation technology, including LEAP-1B durability kit certification and hybrid-electric propulsion advancements.

Financial highlights

• Q2 2026 total revenue: $13.3B (+21% YoY); adjusted revenue: $12.6B (+24% YoY); six-month revenue: $25.7B (+23% YoY).

• Q2 net income: $2.4B (+$0.4B YoY); operating profit: $2.7B (+18% YoY); profit margin: 21.0% (down 70 bps YoY); operating profit margin: 21.7% (down 130 bps YoY).

• Adjusted EPS for Q2: $2.02 (+22% YoY); GAAP EPS: $2.30 (+23% YoY); six-month adjusted EPS: $3.88 (+24% YoY).

• Free cash flow for Q2: $3.0B (+43% YoY); six-month free cash flow: $4.7B (+$1.1B YoY); FCF conversion above 100%.

• Share repurchases: 6.9M shares for $2.0B in Q2; share count down 24M year-over-year.

Outlook and guidance

• Full-year 2026 adjusted revenue guidance raised to $42.3B, with growth expected at 21%.

• Operating profit guidance increased to $10.55–$10.75B; adjusted EPS now expected at $7.65–$7.85.

• Free cash flow guidance raised to $8.9–$9.2B, with FCF conversion above 100%.

• Commercial Engines & Services revenue growth now expected at ~20%, up from mid-teens; Defense & Propulsion Technologies revenue growth outlook raised to low double digits.

• High visibility into demand with 95% of Q3 spare parts revenue in backlog.