GE Aerospace (General Electric Co (NYSE:GE)) reported better-than-expected second-quarter 2026 results, but shares fell about 4% as investors weighed the company’s strong performance against already elevated expectations and signs that order growth is beginning to moderate.
The aerospace manufacturer posted adjusted earnings per share of $2.02 on revenue of $13.35 billion, ahead of Wall Street estimates of $1.86 per share on revenue of $11.91 billion.
Revenue increased 31.5% year over year, supported by growth in commercial services and continued demand for aftermarket support.
The company reported total orders of $16.5 billion in the quarter, up 17% year over year, while adjusted revenue reached $12.6 billion, up 24%. Operating profit increased 18% to $2.7 billion, and free cash flow rose 43% to $3 billion.
Commercial Engines & Services revenue increased 27% year over year to $9.7 billion, with services revenue benefiting from higher shop visit output and increased material availability from suppliers. GE Aerospace said total engine deliveries rose 31% in the first half of the year, including a 41% increase in LEAP engine deliveries.
Despite the strong results and raised guidance, investor focus remained on execution challenges within the aerospace supply chain. Persistent supplier constraints have continued to delay engine deliveries, limiting the pace at which GE Aerospace can convert its backlog into completed deliveries.
The company also saw some moderation in order growth compared with recent quarters, contributing to concerns that some of the strong demand outlook has already been reflected in the stock’s valuation. Shares have gained significantly over the past year as investors have anticipated continued recovery in commercial aviation and growth in high-margin aftermarket services.
GE Aerospace highlighted several recent commercial and defense wins during the quarter, including agreements involving LEAP-1B engines with Copa Airlines, F404 engines for Turkish Aerospace’s HÜRJET program, and CT7 engines for Leonardo Helicopters’ New Medium Helicopter program for the UK Ministry of Defence.
GE Aerospace raised its full-year 2026 outlook, now expecting adjusted revenue growth in the low double-digit range to high teens, operating profit of $10.55 billion to $10.75 billion, adjusted earnings per share of $7.65 to $7.85, and free cash flow of $8.9 billion to $9.2 billion.
“GE Aerospace delivered a strong second quarter with revenue and EPS both up more than 20% driven by robust commercial services growth,” GE Aerospace CEO H. Lawrence Culp Jr. said in a statement.
He added that the company remained focused on delivering against its more than $210 billion backlog while investing in next-generation technology.