GE Aerospace Q2 Beat and Raise: Adjusted EPS of $2.02 Tops $1.86 Consensus, Full-Year Guidance Lifted
GE sits 40% above its 52-week low of $254.66.
Summary
GE Aerospace crushed Q2 estimates, raised full-year guidance, and grew its backlog to $210.8 billion. The IRS audit and a dismissed shareholder lawsuit add legal color, but the operational momentum is clear.
Key Events · Earnings and Guidance · GE
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Q2 Earnings Beat
Adjusted EPS came in at $2.02, exceeding the $1.86 consensus. Revenue rose 21% to $13.3B, with services revenue up 24% on strong shop visit and spare parts demand.
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Full-Year Guidance Raised
Management lifted 2026 guidance for revenue, operating profit, and adjusted EPS, citing robust commercial aerospace demand and operational execution.
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Record Backlog
Remaining performance obligation (RPO) reached $210.8B, up 11% from year-end 2025, driven by new engine orders and long-term service agreement renewals.
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Shareholder Returns
GE repurchased $2.0B of stock in Q2 under its $20B authorization, returning capital while maintaining investment-grade ratings.
Analysis · GE · Manufacturing
A strong second quarter saw GE Aerospace deliver adjusted EPS of $2.02, handily beating the $1.86 consensus. Revenue surged 21% to $13.3 billion, fueled by a 30% jump in internal shop visit volume and higher engine deliveries. Reflecting confidence in sustained demand, management raised full-year guidance for revenue, operating profit, and adjusted EPS. The backlog grew to $210.8 billion, up 11% from year-end, underpinned by new commercial engine orders and long-term service agreements. The company also returned $2.0 billion to shareholders via buybacks in the quarter. On the risk front, the IRS is auditing 2016–2020 tax years and may assert material additional taxes, though GE plans to contest any such claims. A long-running shareholder derivative lawsuit was dismissed with prejudice, removing an overhang.
At the time of this filing, GE was trading at $356.05 on NYSE in the Manufacturing sector, with a market capitalization of approximately $376B. The 52-week trading range was $254.66 to $382.97. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.