10-QPeriod: Q2 FY2026

GENERAL ELECTRIC CO Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 16, 2026For Securities:GE

Summary

General Electric Company (GE) reported strong top-line growth in its second quarter of 2026, with total revenue increasing by 21% year-over-year to $13.3 billion, driven by robust performance in both equipment and services within its Commercial Engines & Services (CES) segment. Net income from continuing operations also saw a healthy increase of $0.4 billion, reflecting improved segment profit. The company's Commercial Engines & Services segment is experiencing significant demand for its engines and aftermarket services, supported by strategic investments in manufacturing and overhaul capabilities. The Defense & Propulsion Technologies (DPT) segment also contributed positively, with revenue up 16% due to increased volume and pricing. The company continues to manage supply chain challenges and inflationary pressures by leveraging its FLIGHT DECK operating model and collaborating with suppliers. GE Aerospace is also investing in domestic manufacturing, planning to invest $1 billion in U.S. facilities and hire 5,000 workers in 2026. The company demonstrated strong liquidity with $9.3 billion in cash, cash equivalents, and restricted cash, and maintained a disciplined capital allocation strategy, including significant share repurchases totaling $2.0 billion in the quarter. Overall, GE Aerospace presented a positive financial update with strong operational execution and strategic investments for future growth.

Key Highlights

  • 1Total revenue for Q2 2026 surged by 21% to $13.3 billion, driven by strong performance in both equipment and services.
  • 2Commercial Engines & Services (CES) segment revenue increased by 27% to $9.7 billion, with engine deliveries and aftermarket services showing significant growth.
  • 3Defense & Propulsion Technologies (DPT) segment revenue grew 16% to $3.4 billion, supported by increased defense spending and modernization efforts.
  • 4Net income from continuing operations increased by $0.4 billion to $2.4 billion for the quarter, with diluted EPS rising to $2.30.
  • 5Remaining Performance Obligation (RPO) grew 11% to $210.8 billion, indicating a strong future revenue pipeline, particularly in services.
  • 6GE Aerospace repurchased $2.0 billion of its common stock in Q2 2026 as part of its capital allocation strategy.
  • 7The company is investing $1 billion in U.S. manufacturing and plans to hire 5,000 U.S. workers in 2026 to enhance domestic production capabilities.

Frequently Asked Questions

The substantial revenue increase of 21% to $13.3 billion was primarily driven by strong demand for both engine equipment and aftermarket services. The Commercial Engines & Services (CES) segment saw a 27% revenue jump, fueled by higher engine deliveries and increased shop visit volumes and pricing. The Defense & Propulsion Technologies (DPT) segment also contributed with a 16% revenue increase due to higher volume and pricing.

GE Aerospace is actively managing these challenges through its FLIGHT DECK operating model, focusing on cost productivity and strategic pricing adjustments. The company is also investing in its manufacturing and overhaul facilities, as well as collaborating with suppliers to improve material availability and strengthen its supply chain. Despite ongoing pressures, aftermarket output and engine deliveries have shown sequential improvement.

The Remaining Performance Obligation (RPO) increased by 11% to $210.8 billion as of June 30, 2026. This substantial backlog, particularly in services ($178.7 billion), indicates a strong and predictable revenue stream for the coming years, providing good visibility into future financial performance.

GE Aerospace is committed to a disciplined capital allocation strategy. This includes investing in technology and capacity expansion, returning a portion of free cash flow to shareholders through dividends and share repurchases, and pursuing strategic mergers and acquisitions. In the second quarter of 2026, the company repurchased $2.0 billion of its common stock.