General Electric ($GE) — Q2 2026 Earnings Preview
Earnings Date: July 16, 2026
Summary Table: Key Metrics to Watch — Q2 2026 vs. Prior Quarters
Consolidated Results (Quarterly)
| Metric | Q2 2026 Consensus | Q1 2026 Actual | Q2 2025 Actual | QoQ Change | YoY Change |
|---|---|---|---|---|---|
| Revenue ($M) | 11,771 | 10,715 | 9,564 | +9.8% | +23.1% |
| Gross Profit Margin % | 38.1 | 35.0 | 36.6 | +310 bps | +150 bps |
| EBITDA ($M) | 2,908 | 2,533 | 2,447 | +14.8% | +18.8% |
| Net Income ($M) | 1,962 | 1,704 | 1,532 | +15.2% | +28.1% |
| EPS (GAAP) | 2.04 | 1.72 | 1.53 | +18.6% | +33.3% |
| Cash Flow/Share ($) | 2.43 | 1.81 | 1.58 | +34.3% | +53.8% |
Note: Segment-level consensus for Q2 2026 is not available in the source documents.
Table: Recent Guidance & Management Commentary — Near-Term Outlook
GE Aerospace Guidance and Outlook (as of Q1 2026 and Q4 2025)
| Metric/Theme | FY 2026 Guidance / Q2 2026 Commentary | Context Notes |
|---|---|---|
| Revenue Growth | Low double digits for FY 2026; Q2 expected high teens | Q2 revenue growth expected above full-year guide |
| Operating Profit | $9.85B–$10.25B for FY 2026 | Q2 profit growth expected sequentially and YoY |
| EPS | $7.10–$7.40 for FY 2026 | Trending toward high end of range |
| Free Cash Flow | $8.0B–$8.4B for FY 2026 | Trending toward high end of range |
| CES Services Revenue | Up ~$4B YoY for FY 2026; Q2 high teens growth | Q2 services growth above full-year guide; strong backlog |
| CES Shop Visits | Guide oversubscribed by 1/3 for FY 2026 | All Q2 shop visits already off wing; high visibility into Q2 demand |
| Spare Parts Revenue | 95% of Q2 in backlog | Strong backlog supports Q2 delivery |
| DPT Revenue/Profit | High end of prior guide for FY 2026 | Strong Q1 growth, momentum expected to continue |
| Macro Assumptions | Departures flat to low single digits for FY 2026 | Middle East conflict impact assumed through summer; limited impact on 2026 |
What to Expect This Quarter
- Strong Top-Line Growth: Consensus expects Q2 2026 revenue of $11.77B (+23% YoY, +10% QoQ), reflecting robust demand in both commercial and defense segments.
- Services Momentum: Management expects Q2 services revenue growth in the high teens, above the full-year guide, supported by a strong backlog (95% of spare parts revenue already in backlog; all Q2 shop visits already off wing).
- Profitability: Operating profit and EPS are trending toward the high end of the full-year guidance range, with Q2 profit expected to grow both sequentially and YoY.
- Segment Dynamics: CES (Commercial Engines & Services) is benefiting from strong shop visit and spare parts demand, while DPT (Defense & Propulsion Technologies) continues to see high order activity and output.
- Margins: Gross margin is expected to improve QoQ and YoY, with management guiding for flattish CES margins for the year despite mix headwinds from higher OE shipments and 9X program losses.
Key Themes Investors Are Watching
- Aftermarket Demand & Backlog: Sustainability of aftermarket strength, given management's commentary that demand continues to exceed supply and delinquency remains elevated.
- Macro Risks: The impact of the Middle East conflict and elevated jet fuel prices on global departures and airline financial health. Management assumes flat to low single-digit departures growth for 2026, with a lagged impact on services if softness persists.
- Supply Chain & Delinquency: Progress on reducing spare parts and shop visit delinquency is critical, as continued demand outstrips supply. Management notes ongoing double-digit improvements in supplier material input.
- LEAP & 9X Programs: LEAP aftermarket profitability is improving, with margins expected to approach CES averages by 2028. 9X program losses are expected to double YoY in 2026 but are incorporated in guidance.
- Defense Strength: DPT segment is expected to deliver at the high end of guidance, with strong order momentum and improved output.
Catalysts and Risks Into the Print
Catalysts:
- Q2 results likely to show strong YoY and sequential growth, especially in services.
- Potential for upward revisions if macro environment stabilizes and supply chain constraints ease.
- Farnborough Airshow in July could drive additional order momentum.
Risks:
- Prolonged or worsening geopolitical disruptions (Middle East conflict) could dampen air traffic and delay aftermarket recovery.
- Elevated jet fuel prices and regional economic pressures may impact airline customers' ability to invest in overhauls and new equipment.
- Supply chain bottlenecks and persistent delinquency could limit ability to meet demand and convert backlog to revenue.
- Mix headwinds from higher OE shipments and 9X program losses could pressure margins if not offset by services growth.
Setup and Positioning Summary
- Stock Performance: Not provided in source documents; monitor market data for recent trends.
- Sentiment: Management tone is confident, emphasizing strong backlog, robust demand, and visibility into Q2. Guidance is maintained but trending toward the high end, with caution around macro uncertainty. Sell-side focus is on aftermarket sustainability, supply chain execution, and macro risks.
- Consensus Positioning: Street expectations are for strong Q2 growth, with upside potential if supply chain and macro risks are contained.
Sources:
- GE Q1 2026 10-Q (period ended March 31, 2026, filed April 21, 2026)
- Q1 2026 and Q4 2025 earnings call transcripts
- Company consensus data (as of June 19, 2026)
- 2025 10-K and 10-Q filings for historical context
All figures and commentary reflect only information disclosed in company filings and transcripts through June 19, 2026.
