GE Aerospace Earnings: Spooling Up to a Very Strong First Half of 2026

Key Morningstar Metrics for GE Aerospace

• Fair Value Estimate
  : $347.00
• Morningstar Rating
  : ★★★
• Morningstar Economic Moat Rating
  : Wide
• Morningstar Uncertainty Rating
  : Medium

What We Thought of GE Aerospace’s Earnings

GE Aerospace’s GE commercial engines segment revenue grew 27.0% year over year, with a 27.3% operating margin in the second quarter. Defense revenue grew 16.0% with a 13.8% margin. Management raised its full-year revenue and profit expectations after weathering recent macroeconomic turbulence and uncertainty.

Why it matters: We maintain our admiration for the global franchise that GE Aerospace has cultivated and for the discipline with which it executes productivity-enhancing projects across the business. Despite uncertain times, GE’s moat is proving its worth.

• The company shipped 134 more commercial engines in the second quarter than last year, including 100 more in the Leap family. New engine deliveries generally provide lower margins than aftermarket sales, but commercial margins remained healthy at above 27%.
• Notwithstanding a spike in jet fuel prices and geopolitical jitters related to war in and around Iran, high global aircraft utilization and fewer recent retirements of older jets in recent months led the commercial aftermarket business to grow 32% in the first half.

The bottom line: We have raised our fair value estimate for wide-moat GE Aerospace to $347 per share from $307 due to the time value of money and a slightly steeper medium-term aftermarket margin growth trajectory. The shares trade within 10% of our fair value estimate, though we anticipate the firm will continue to enhance its dividend and share-repurchase programs.