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GE Aerospace Beats Q2, Raises FY Guidance on Services Strength

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Breaking News | GE Aerospace Beats Q2, Raises FY Guidance on Services Strength

1 min read

Suhaib

Breaking summary

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.

Impact Direction
Bullish
ReasonRaised full-year EPS guide to $7.65–$7.85 exceeds consensus $7.56; beat driven by 26% services growth with expanding margins.

Key Numbers

GE PRICE AT RELEASE$360.35
1.87%
FY26 Adjusted EPS Guidance (Raised)$7.65–$7.85
Q2 Commercial Services Revenue Growth26%

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.

#earnings
#aerospace
#guidance_raise
#commercial_aviation

Comments (0)

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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