GE Aerospace Q2 2026: Earnings Beat Masks Margin Compression Concerns

GE Aerospace reported a strong Q2 2026 with adjusted EPS of $2.02 versus $1.86 consensus and $12.6B in adjusted revenue, up 24% year over year, while raising full-year adjusted operating profit guidance to $10.55–10.75B and free cash flow to over $8.9B. Despite the top-line beat, operating margin contracted 130 basis points to 21.7% as GE absorbed higher costs from aggressive volume ramp-ups, including a 31% surge in engine deliveries and rising supplier input costs in an inflationary supply chain.

Why it matters: The stock fell 4.04% in extended trading as investors weighed the $210B backlog's double-edged nature, with Trefis valuing the stock at $346 versus the market price of $360.