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GE Aerospace
S&P 500
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$369.6B
Market Cap
37.8
P/E
2.39
PEG
28.2%
ROCE
44.7%
ROE
1.08
D/E
18.7%
OPM
-10.3%
% from 52W High
69
α RS
🔍 GE is showing a high-conviction setup because it matches 14 of 37 tracked screener presets, RS Rating is 69, and an ECS of 66.2 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating ECS
Sources
Conviction 14/37 · RS Rating 69 · ECS 66.2
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🌏 Global Investor Returns
Currency-adjusted total returns for GE including FX impact
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📈 Price History
Ratio Health
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About

General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and aircraft systems.

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📈 Growth Pattern
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⭐ Superinvestors Holding GE
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 414.1K $117.5M 0.18% Mar 2026
Cathie Wood ARK Investment Management 3.7K $1.1M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$12.6B
+24% YoY
Operating Income
$2.7B
+18% YoY
Operating Margin
21.7%
-1.3pp YoY
Net Income
$2.8B
+17% YoY
Adjusted EPS
$2.02
+22% YoY
What Went Right
  • Adjusted revenue up 24% to $12.6B and adjusted EPS up 22% to $2.02, with free cash flow up 43% to $3.0B.
  • Commercial aftermarket strength: first-half commercial services revenue up 32%, with LEAP internal shop visits up over 50% in Q2.
  • Total engine deliveries up 31% in the first half, including LEAP up 41%, supported by record internal shop visit output.
  • LEAP-1B durability kit certified, expected to deliver ~2x time-on-wing improvement with full cutover in early 2027.
What to Watch
  • Spare parts delinquencies grew 20% sequentially, indicating material availability constraints still limit shipments.
  • Q2 operating margin fell 130bps to 21.7%, pressured by installed engine growth, investments and inflation.
  • Management cautioned on a dynamic macro environment and expects only a gradual return to modest departures growth in H2.
  • Second-half services growth will moderate to low double digits on tougher year-over-year comparisons despite the strong first half.
Management Guidance
  • FY26 adjusted revenue growth raised to high-teens, up from low double digits.
  • FY26 operating profit guided to $10.55B-$10.75B.
  • FY26 adjusted EPS guided to $7.65-$7.85.
  • FY26 free cash flow guided to $8.9B-$9.2B.
  • CES operating profit guided to $10.25B-$10.35B; DPT operating profit guided to $1.6B-$1.7B.
  • FY26 tax rate expected below 16.5%.
Investor Lens
The thesis is stronger after this quarter. GE Aerospace delivered broad-based double-digit growth, raised full-year guidance across every metric, and continues to benefit from robust aftermarket demand, a $170B commercial services backlog and improving operational execution through FLIGHT DECK. Supply chain constraints and margin dilution from installed-engine growth and LEAP/GE9X investments remain the main offsets to near-term profitability, but the medium-term services algorithm still points to durable double-digit growth.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter: revenue +24%, EPS +22%, FCF +43%; guidance raised
Revenue
Adjusted revenue rose 24% YoY to $12.6B (GAAP revenue +21% to $13.3B). CES grew 27% to $9.7B on services +26% and equipment +30%, while DPT grew 16% to $3.4B.
Profitability
GAAP profit was $2.8B, up 17% YoY; adjusted operating profit rose 18% to $2.7B. Adjusted EPS increased 22% to $2.02, helped by a lower tax rate (16.7%) and reduced share count.
Margins
Operating margin fell 130 bps to 21.7% due to installed engine growth, investments and inflation. CES margin was 27.3% (down 160 bps), while DPT margin rose 30 bps to 13.8%.
Balance Sheet
Q2 free cash flow was $3.0B, up 43% YoY, with conversion above 140%. Working capital declined by nearly $200M despite strong growth, including about $100M of tariff refunds; FY26 FCF guidance was raised to $8.9B-$9.2B.
Key Risks
Spare-parts delinquencies grew 20% sequentially, showing material availability still constrains fulfilment. Management flagged a dynamic macro environment and only modest flight-departure growth in H2, with second-half services growth decelerating to low double digits on tough comps. Margins remain pressured by LEAP/GE9X investments and inflation.
Outlook
GE raised FY26 guidance across the board: high-teens revenue growth, operating profit of $10.55B-$10.75B, adjusted EPS of $7.65-$7.85 and free cash flow of $8.9B-$9.2B. CES operating profit is guided to $10.25B-$10.35B and DPT to $1.6B-$1.7B.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-16
Q2 2026 saw double-digit growth in orders, revenue, and profit, with EPS up 22% and free cash flow up 43%. Full-year guidance was raised across all metrics, driven by robust demand, operational improvements, and a strong services backlog.
Q1 2026 Q1 2026 2026-04-21
Orders and revenue surged in Q1 2026, with strong growth in both commercial and defense segments. Despite macro uncertainty and supply chain constraints, guidance is maintained at the high end, supported by a robust backlog and continued investment in capacity and technology.
Q4 2025 Q4 2025 2026-01-22
Strong 2025 results with double-digit growth in orders, revenue, and profit, driven by robust demand and operational improvements. 2026 guidance calls for continued revenue, EPS, and cash flow growth, supported by a $190B backlog and expanding aftermarket services.
Q3 2025 Q3 2025 2025-10-21
Q3 saw 26% revenue and profit growth, 44% EPS increase, and strong free cash flow, driven by robust demand and operational improvements. Full-year guidance was raised across all metrics, with continued momentum expected into 2026.
Q2 2025 Q2 2025 2025-07-17
Q2 2025 saw revenue up 23% and profit up 23%, with strong CES and DPT growth. Guidance for 2025 and 2028 was raised across all key metrics, supported by robust backlog, operational improvements, and resilient market demand.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Information Sources:
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