GE Aerospace (GE) Q2 2026: Strong Growth Across the Board — Positive Outlook

In its second quarter of 2026, GE Aerospace reported a robust performance, with total revenue of $13.3 billion, reflecting an increase of $2.3 billion or +21% year-over-year (YoY). This growth was driven by a significant rise in both orders and adjusted revenue, which reached $12.6 billion, up $2.5 billion or +24% YoY. The company also saw a notable increase in profit, with GAAP profit rising to $2.8 billion, an increase of $0.4 billion or +17% YoY.

This quarter's results are undoubtedly positive for shareholders, showcasing strong operational performance and a solid demand for services. The increase in revenue and profit margins indicates effective management and a favorable market environment, particularly in the commercial aerospace sector.

Key Financial Metrics

• Total Orders: $16.5 billion, up $2.4 billion or +17% YoY
• Total Revenue (GAAP): $13.3 billion, up $2.3 billion or +21% YoY
• Adjusted Revenue: $12.6 billion, up $2.5 billion or +24% YoY
• GAAP Profit: $2.8 billion, up $0.4 billion or +17% YoY
• Operating Profit: $2.7 billion, up $0.4 billion or +18% YoY
• Profit Margin (GAAP): 21.0%, down (70) bps YoY
• Adjusted EPS (GAAP): $2.02, up $0.37 or +22% YoY
• Cash from Operating Activities: $3.3 billion, up $0.9 billion or +39% YoY
• Free Cash Flow: $3.0 billion, up $0.9 billion or +43% YoY

Dividend and Share Buyback

While the filing did not mention any changes to dividends or share buybacks, the strong cash flow generation of $3.3 billion and free cash flow of $3.0 billion suggest that the company is well-positioned to consider shareholder returns in the future.

Guidance Update

GE Aerospace has raised its full-year guidance based on its exceptional performance in the first half of 2026. The updated guidance includes:

• Adjusted Revenue Growth: High-teens, up from low double digits
• Operating Profit: Expected to be between $10.55 billion and $10.75 billion, an increase from the previous range of $9.85 billion to $10.25 billion
• Adjusted EPS: Expected to be between $7.65 and $7.85, up from $7.10 to $7.40
• Free Cash Flow: Expected to be between $8.9 billion and $9.2 billion, up from $8.0 billion to $8.4 billion

Forward Catalysts

Investors should keep an eye on GE Aerospace's continued execution on its backlog of over $210 billion, as well as advancements in next-generation technologies. The company is also focused on improving operational efficiencies and reducing costs, which could further enhance profitability. Additionally, the upcoming certification for the LEAP-1B durability kit and the progress on next-generation defense propulsion systems will be critical to watch in the next quarter.

In summary, GE Aerospace's Q2 2026 results reflect a strong operational performance and a positive outlook for the remainder of the year, making it a favorable time for shareholders to remain optimistic about the company's growth trajectory.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (amounts in millions)

Note: All amounts are in millions.

	2026	2025	% Change	2026 Guide	2025 Guide	% Change
Revenues	$12,634	$10,151	24%
Profit (GAAP)	$2,746	$2,337	18%
Operating Profit	$2,746	$2,337	18%
Profit Margin (GAAP)	21.7%	21.0%	(130) bps
Continuing EPS (GAAP)	$2.30	$1.87	23%
Adjusted EPS	$2.02	$1.66	22%
Free Cash Flow	$3,000	$2,100	43%

CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in millions)

Note: All amounts are in millions.

	2026	2025
Cash and Cash Equivalents	$3,534	$2,124
Accounts Receivable	$6,202	$5,900
Inventory	$5,678	$4,567
Other Current Assets	$1,322	$1,150
Total Current Assets	$16,736	$13,741
Property, Plant & Equipment	$8,633	$8,500
Intangible Assets	$4,222	$3,972
Other Non-current Assets	$2,740	$2,750
Total Assets	$32,331	$29,963
Accounts Payable	$5,987	$5,678
Short-term Debt	$2,042	$1,841
Other Current Liabilities	$3,998	$3,698
Total Current Liabilities	$12,027	$11,217
Long-term Debt	$9,000	$8,500
Other Non-current Liabilities	$2,200	$2,000
Total Liabilities	$23,227	$21,717
Shareholders' Equity	$9,104	$8,246
Total Liabilities & Equity	$32,331	$29,963

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