GE Aerospace beats Q2 revenue, profit estimates on commercial services growth; lifts FY guidance

GE Aerospace

GE Aerospace

GE

0.00


Overview

  • U.S. jet engine maker's Q2 adjusted revenue rose 24%, beating analyst expectations

  • Adjusted EPS for Q2 climbed 22%, beating analyst expectations

  • Company performance driven by robust commercial services growth


Outlook

  • GE Aerospace raises 2026 adjusted revenue growth outlook to high-teens

  • Company now expects 2026 operating profit of $10.55-$10.75 bln

  • GE Aerospace sees 2026 adjusted EPS at $7.65-$7.85


Result Drivers

  • COMMERCIAL SERVICES GROWTH - Co said Q2 commercial services revenue rose 32% year-on-year, driven by higher internal shop visits and spare parts sales

  • SUPPLIER INPUTS - Co attributed double-digit increases in material input from priority suppliers to strong Q2 results

  • DEFENSE & PROPULSION GROWTH - Co said defense and propulsion technologies revenue grew 16% in Q2, with both services and equipment contributing


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

$13.30 bln

Q2 Adjusted Revenue

Beat

$12.60 bln

$11.86 bln (14 Analysts)

Q2 Adjusted EPS

Beat

$2.02

$1.86 (18 Analysts)

Q2 Continuing EPS

$2.30


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the aerospace & defense peer group is "buy"

  • Wall Street's median 12-month price target for General Electric Co is $393.50, about 9.2% above its July 15 closing price of $360.35

  • The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 37 three months ago


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