Key Moments
- GE Aerospace increased its 2026 adjusted earnings per share guidance to $7.65-$7.85 from a previous range of $7.10-$7.40.
- Commercial engine and services revenue rose 27% year-over-year to $9.7 billion, while total company revenue climbed 21% to $13.35 billion.
- The company expects 2026 commercial engine and services revenue to grow by about 20%, up from a prior mid-teens percentage growth outlook.
2026 Profit Outlook Raised on Robust Services Demand
GE Aerospace lifted its 2026 profit forecast on Thursday, citing stronger-than-expected spending by airlines on aftermarket services and parts. The company now projects adjusted earnings of $7.65 to $7.85 per share in 2026, compared with its earlier projection of $7.10 to $7.40 per share.
The company indicated that demand for maintenance and spare parts has held up even as airlines contend with higher operating costs. Management noted that much of the shop-visit activity planned for 2026 is already locked in, and that airlines’ appetite for spare parts continues to surpass available supply.
Airlines Face Fuel and Capacity Pressures
Airlines globally have been tightening budgets and cutting capacity in an effort to sustain ticket prices. The war in Iran has disrupted global oil shipping routes, pushing jet fuel prices higher and adding another layer of cost pressure for carriers.
GE Aerospace’s services business is closely linked to aircraft departures because more flying leads to greater engine wear and higher maintenance demand. Despite softer flight activity and elevated fuel costs, CEO Larry Culp said in May that the company had not observed airlines scaling back engine maintenance or parts orders. While jet fuel prices have edged down since that time, they remain above levels seen before the conflict began.
Strength in Commercial Engines and Services
The company highlighted the importance of its position in both narrowbody and widebody markets. It holds a leading role in the narrowbody engine segment through CFM International, its joint venture with France’s Safran, and maintains a strong presence in widebody programs. Parts and services account for more than 70% of commercial engine revenue.
For the most recent quarter, revenue from the commercial engine and services unit increased 27% year-over-year to $9.7 billion. Looking ahead to 2026, GE Aerospace now expects commercial engine and services (CES) revenue to grow by about 20%, an upgrade from its prior guidance of mid-teens percentage growth.
Quarterly Financial Performance
GE Aerospace reported an adjusted profit of $2.02 per share for the second quarter, up from $1.66 per share in the same period a year earlier. Total revenue reached $13.35 billion, representing a 21% increase from the prior year.
| Metric | Current Period | Year-Ago Period / Prior Outlook |
|---|---|---|
| 2026 adjusted EPS forecast | $7.65 – $7.85 | $7.10 – $7.40 (prior forecast) |
| Commercial engine and services revenue (quarter) | $9.7 billion | 27% lower (year-ago level) |
| CES 2026 revenue growth outlook | About 20% | Mid-teens percentage points (prior outlook) |
| Adjusted profit per share (Q2) | $2.02 | $1.66 |
| Total revenue (Q2) | $13.35 billion | 21% lower (year-ago level) |
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