GENERAL ELECTRIC CO Earnings Summary — Q2 FY2026
GE Aerospace Rockets to 21% Revenue Growth in Q2, Raising Full-Year Guidance Across All Metrics
Key Takeaways
- GE Aerospace delivered strong second-quarter growth with total GAAP revenue up 21% to $13.3 billion, led by a 27% surge in Commercial Engines & Services.
- Services revenue was a major engine of growth, increasing 26% in the quarter with record internal shop visit output and spare parts revenue up over 25%.
- Total orders reached $16.5 billion, a 17% increase, supporting a massive backlog of over $210 billion.
- Commercial engine deliveries grew 26% in the quarter, with LEAP unit deliveries specifically up 24%.
- Despite strong volume, adjusted operating margins contracted 130 basis points due to a higher mix of installed engine growth, increased investments, and inflationary pressures.
- Free cash flow generation remained robust at $3.0 billion for the quarter, reflecting a 43% year-over-year improvement.
Management Guidance
Based on strong first-half performance, management raised full-year 2026 guidance across the board: Operating Profit is now expected at $10.55B - $10.75B (up from $9.85B - $10.25B), Adjusted EPS at $7.65 - $7.85 (up from $7.10 - $7.40), and Free Cash Flow at $8.9B - $9.2B.
Sentiment Shift
Improving
A comprehensive beat-and-raise quarter driven by robust services demand and improved material input from suppliers, outweighing segment-level margin compression.
Outlook
The company expects 'High-teens' adjusted revenue growth for FY2026, driven primarily by a roughly 20% revenue growth expectation in the Commercial Engines & Services segment.
From the Annual Report (Key Quotes)
“GE Aerospace delivered a strong second quarter with revenue and EPS both up more than 20% driven by robust commercial services growth.”
“FLIGHT DECK continues to fuel significant operational improvements across services and equipment with record internal shop visit output.”
“Given our exceptional year-to-date performance and visibility for the remainder of the year, we are raising our full-year guidance across the board.”
Official Quarterly Documents
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This summary is AI-generated from GENERAL ELECTRIC CO's latest quarterly filing and earnings call. For informational purposes only — not investment advice.