GE Aerospace (GE) is scheduled to release its second quarter 2026 earnings before the US market opens on 16 July. The company enters the print on a strong run, having delivered four consecutive earnings beats and posted record orders in the first quarter.
Analysts expect adjusted earnings per share of $1.86, up 12.1% from $1.66 in the same quarter last year. Revenue is forecast to reach $11.82 billion, marking a 16.8% increase year on year.
The Q2 print follows a standout first quarter, in which GE Aerospace posted adjusted EPS of $1.86 versus consensus of $1.60, while revenue hit $12.39 billion, up 24.7% year on year. Total orders nearly doubled to $23.0 billion, driven by strong demand across both commercial and defence segments.
GE’s Commercial Engines & Services division remains the dominant revenue driver. In Q1, the segment posted a 34% jump in revenue, with equipment unit volume climbing 50% and services revenue rising 39%. That growth came as airlines expanded fleets and maintenance activity accelerated.
Top Australian Brokers
- Pepperstone - Top Australian broker - Read our review
- eToro - Invest in ASX and international shares - Read our review
The company’s services backlog stands at approximately $170 billion, providing long-term revenue visibility. CEO Larry Culp has attributed recent throughput improvements to FLIGHT DECK, the company’s lean operating system, which has helped maintain production momentum despite ongoing supply-chain headwinds.
The Defence & Propulsion Technologies segment has emerged as another bright spot. Revenue grew 19% year on year in Q1, with orders surging 67%. Operating profit for the segment increased 17% to $379 million. GE secured notable contracts during the quarter, including an extension of support services for T700-GE-T701D engines from Boeing Defence UK and a multi-year partnership with Palantir Technologies to improve fleet management for the US Air Force.
GE’s stock currently trades at $354, up 34% over the past 12 months, 6.5% away from all-time highs. The recent rally reflects optimism around the aerospace recovery, defence spending tailwinds, and the company’s operational execution since its spin-off into separate entities.
Global air travel continues to expand, supporting demand for new aircraft and aftermarket services. At the same time, defence budgets in the US and allied nations have increased, with the fiscal 2026 US Defence Appropriations Act providing additional funding for propulsion systems and aircraft readiness programs.
However, the industry remains constrained by supply-chain bottlenecks, labour shortages, and delays in component availability. These factors have slowed production schedules and limited the pace at which airlines can take delivery of new aircraft.
Markets are pricing a move of ~5.3% in GE shares on the week, potentially putting bulls back in sight of highs, should the print hit the mark.
