GE Aerospace lifted its 2026 financial targets on the back of a second quarter that beat expectations, with adjusted earnings per share of $2.22 and a 27% jump in commercial engine revenue. The company now expects 2026 adjusted EPS of $7.85 at the midpoint, up from a prior range of $7.70 to $7.90, and free cash flow of $9.2 billion, compared with an earlier $8.9 billion to $9.2 billion forecast.
Q2 by the numbers
For the three months ended June 30, adjusted revenue hit $12.4 billion, a 24% increase from a year earlier. GAAP revenue came in at $13.3 billion, up 21%. Free cash flow reached $3.027 billion, a 43% jump. Orders totaled $16.5 billion, a 17% gain. The company's Commercial Engines & Services (CES) segment saw revenue climb 27%, with services up roughly 26% and equipment up about 30%.
Why the guidance got a boost
GE Aerospace said widebody engine deliveries rose about 30% in the second quarter compared with the same period last year. GEnx shipments, a key model for long-haul jets, increased “significantly more” than that. The company noted that months of engines are now staged at Boeing’s Charleston facility, suggesting a pipeline ready for final assembly. Aftermarket services — shop visits, spare parts, and time-and-materials contracts — continue to carry higher margins and generate steadier cash than new engine sales, which helped lift the outlook.
Risks that could trip up the plan
Despite the upbeat forecast, the company faces several headwinds. OEM production hiccups, such as the ongoing 787 delivery pace, could slow engine installations. Supply chain constraints remain, particularly in castings and coatings. Labor is tight across the aerospace industry, and airline maintenance capacity is stretched. Regulatory quality findings also pose a risk, though the company did not detail any specific new issues in the quarter.
GE Aerospace’s revised 2026 numbers assume these risks are managed but not eliminated. The company will report third-quarter results in October, giving investors the next look at whether the momentum can hold.
