General Electric raises full-year outlook as engine deliveries climb
Free cash flow rose 43% year-over-year to $3.0 billion in the second quarter.
General Electric (GE), the aerospace and propulsion manufacturer, reported second-quarter revenue of $13.3 billion.
The results marked a period of accelerating volume and cash generation, leading the company to raise its financial targets for the remainder of the year across revenue, profit, and cash flow.
Total revenue rose 21% year-over-year from $11.0 billion in the second quarter of 2025. Adjusted revenue grew 24% to $12.6 billion, following a 29% increase in the first quarter. GAAP profit margin compressed 70 basis points to 21.0%, though the figure improved from 17.7% in the prior quarter.
Growth was led by the Commercial Engines & Services segment, where revenue rose 27% to $9.7 billion. Equipment revenue in that segment grew 30%, supported by a 26% increase in unit volume. Total engine deliveries for the first half of 2026 increased 31%, with LEAP deliveries rising 41%.
Defense & Propulsion Technologies revenue grew 16% to $3.4 billion. Within that segment, Propulsion & Additive Technologies increased 23%, attributed to Avio Aero.
General Electric raised its full-year 2026 adjusted revenue guidance to the high-teens from low-double-digits. The company now expects full-year operating profit to range between $10.55 billion and $10.75 billion, up from a previous range of $9.85 billion to $10.25 billion.
Adjusted earnings per share guidance was raised to $7.65 - $7.85 a share from $7.10 - $7.40. Full-year free cash flow guidance was increased to a range of $8.9 billion to $9.2 billion from $8.0 billion to $8.4 billion.
Segment outlooks were also adjusted upward. The company now expects Commercial Engines & Services revenue growth of approximately 20% for the year, with services revenue growth projected in the low 20s. Defense & Propulsion Technologies revenue growth guidance was raised to low double digits.