GE Aerospace: Strong Guidance Boost Extends The Runway

GE Aerospace delivered robust Q2 2026 results, with revenue up 24%, EPS up 22%, and free cash flow up 43%, prompting a guidance raise.

Despite margin compression from installed engine growth and GE9X ramp, GE's $170B services backlog and oversubscribed MRO network signal resilient aftermarket demand.

Management raised 2026 guidance across revenue, profit, EPS, and free cash flow, now expecting high-teens revenue growth and $8.9–$9.2B in free cash flow.

I maintain a buy rating, with a new base case price target of $376.29 and an upbeat scenario at $402.88, reflecting 9–17% upside potential.

GE Aerospace (GE) remains a buy after Q2 2026 results showed that the macroeconomic risks discussed in my previous report have not translated into weaker aftermarket demand.

Adjusted revenue, operating profits, and free cash flow.