GE Aerospace lifts forecast, but investors focus on slower orders
GE Aerospace beat second-quarter expectations and raised 2026 targets, while shares fell as order growth cooled from recent blistering levels.
By Frankie Delgado · News Reporter
3 min read
GE Aerospace handed Wall Street a richer 2026 forecast on Thursday, but investors zeroed in on a slower pace for new orders and sent the stock lower before the opening bell.
The jet-engine maker and defense contractor said second-quarter profit, revenue and free cash flow all topped analyst expectations compiled by FactSet. Even so, GE shares were down 4.3% in premarket trading, according to MarketWatch, leaving the stock about 9% below its July 6 record close of $378.68.
The tension in the report was clear: the business is still growing fast, but the order surge has eased. GE said total orders rose 17% in the quarter to $16.5 billion. That is healthy growth, but it followed previously reported order increases of 87% in April and 74% in January.
GE’s latest forecast was a shift from three months earlier, when the company held back from raising its outlook despite a large earnings beat. MarketWatch reported that GE had cited uncertainty around fuel prices and possible pressure on air travel demand tied to the Iran conflict.
Chief Executive Larry Culp said the company now had enough confidence to lift its targets. “Given our exceptional year-to-date performance and visibility for the remainder of the year, we are raising our full-year guidance across the board,” Culp said in the company’s release.
Profit and revenue beat estimates
For the quarter ended June 30, GE reported net income of $2.8 billion, up 17.2% from the same period a year earlier. Adjusted earnings per share rose to $2.02 from $1.66, beating the FactSet consensus estimate of $1.86.
Revenue excluding nonrecurring items climbed 24.5% to $12.63 billion. Analysts tracked by FactSet had expected $11.87 billion.
GE also reported a sharp cash-flow beat. Free cash flow rose 42.8% to $3.03 billion, compared with the FactSet consensus of $1.81 billion.
The company lifted its full-year outlook for adjusted revenue growth to a high-teens percentage range. Its previous forecast called for growth in the low double digits.
GE also raised its adjusted earnings guidance to $7.65 to $7.85 a share, up from its earlier range of $7.10 to $7.40. Free cash flow is now expected to land between $8.9 billion and $9.2 billion, compared with the previous forecast of $8 billion to $8.4 billion.
Commercial engines lead the charge
GE’s commercial engines and services unit remained the company’s biggest driver. Revenue in the segment rose 27.3% to $9.73 billion, GE said. Equipment revenue increased 30%, while spare-parts revenue and shop-visit revenue each rose 25%.
Orders in commercial engines and services increased 17.7% to $12.93 billion.
The defense and propulsion-technologies business also grew. GE said revenue in that segment rose 15.6% to $3.44 billion, while orders increased 12.5% to $4.14 billion.
The stock’s drop also fits a recent pattern around GE earnings. MarketWatch reported that shares fell 5.6% on the day of the previous quarterly report and 7.4% after the report before that, despite profit and revenue beats in both cases.
GE shares had already been on a strong run. MarketWatch reported that the stock surged 491% over the three years through 2025 and gained 17% this year through Wednesday. The S&P 500, by comparison, was up 10.6% this year after a 78% gain over the prior three-year period.
This story draws on original reporting from MarketWatch.