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Breaking News | GE Aerospace Beats Q2, Raises FY Guidance on Services Strength
1 min read
Suhaib
Strong commercial aftermarket demand is translating to genuine margin leverage - the raised profit guide now exceeds consensus, validating the FLIGHT DECK operational playbook. This is no longer a recovery story; it's a compounding engine.
Key Numbers
What happened
GE Aerospace reported Q2 adjusted EPS of $2.02, beating consensus $1.86, on revenue of $13.35 billion (up 21% year-over-year). Commercial Engines & Services delivered $9.73 billion revenue (+27%), with services up 26% and equipment up 30%. Operating profit rose to $2.41 billion from $2.01 billion prior year. Management credited the FLIGHT DECK operational program for record internal shop visit output and 31% growth in total engine deliveries in the first half. Defense & Propulsion Technologies added $3.44 billion revenue (+16%) with operating margin expanding 30 basis points to 13.8%.
What to watch
Full-year guidance now calls for Commercial Engines & Services revenue growth of ~20% (previously mid-teens) - watch whether supply chain constraints limit further upside.
Free cash flow raised to $8.9B–$9.2B (from $8.0B–$8.4B) - conversion rate will signal whether working capital normalization is complete.
Operating profit guide of $10.55B–$10.75B implies ~300bps margin expansion in 2H - sequential margin performance in Q3 will validate the trajectory.
Also Worth Watching
RTX operates Pratt & Whitney engines competing directly in commercial aftermarket - GE's 26% services growth and margin expansion set a high bar for RTX's upcoming Q2 read, particularly in GTF maintenance volume and pricing power. RTX (RTX Corporation $195.89 (+1.3%) - )
Company Overview
GE Aerospace designs and manufactures jet engines for commercial and military aircraft, serving airlines, defense contractors, and aviation operators globally. The company generates revenue through equipment sales and a recurring services business that maintains and overhauls engines throughout their lifecycle.
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GE
General Electric Co
NYSE
•
Industrials
$360.35
USD
+$6.62
(+1.87%)
At close: Jul 15, 2026, 4:00 PM EDT
Market Cap:
$370.44B
Volume:
5.4M
52w High:
$382.97
P/E Ratio:
42.56
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