GE Aerospace (NYSE:GE) delivered better-than-expected second-quarter results and upgraded its financial guidance for the full year, supported by continued strength in its commercial services business and improving operational performance.
The company reported adjusted earnings of $2.02 per share, comfortably ahead of the analyst consensus of $1.86. Adjusted revenue totaled $12.63 billion, exceeding expectations of $11.81 billion and increasing 24% from the same quarter last year. On a GAAP basis, total revenue rose 21% year over year to $13.35 billion.
Shares gained about 1% following the earnings release.
Commercial services continue to drive growth
“GE Aerospace delivered a strong second quarter with revenue and EPS both up more than 20% driven by robust commercial services growth,” said Chairman and CEO H. Lawrence Culp, Jr.
“FLIGHT DECK continues to fuel significant operational improvements across services and equipment with record internal shop visit output in the quarter and 31% growth in total engine deliveries in the first half.”
The Commercial Engines & Services division generated revenue of $9.73 billion during the quarter, representing a 27% increase from a year earlier.
Within the segment, services revenue climbed 26%, while equipment revenue advanced 30%.
Company upgrades full-year guidance
Following the stronger-than-expected performance, GE Aerospace increased its financial outlook across all key metrics.
The company now expects adjusted earnings per share of between $7.65 and $7.85 for fiscal 2026, compared with previous guidance of $7.10 to $7.40. The midpoint of the revised range stands above the analyst consensus estimate of $7.56.
Operating profit guidance was raised to a range of $10.55 billion to $10.75 billion from the prior forecast of $9.85 billion to $10.25 billion.
GE Aerospace also increased its free cash flow outlook to between $8.9 billion and $9.2 billion, up from its previous estimate of $8.0 billion to $8.4 billion.
Defense business also posts solid performance
The Defense & Propulsion Technologies segment reported revenue of $3.44 billion, an increase of 16% from the prior year.
Operating profit rose 18% to $475 million, while the operating margin expanded by 30 basis points to 13.8%.
Management also lifted its outlook for the Commercial Engines & Services segment, which is now expected to deliver revenue growth of approximately 20% for the full year, compared with its previous forecast for growth in the mid-teens.
GE Aerospace stock price
