GE Aerospace targets Q2 earnings beat on $11.9B revenue estimate

GE Aerospace is expected to report Q2 revenue of $11.9 billion and EPS of $1.86, with consensus calling for 16.8% sales growth.

"The commercial aerospace aftermarket remains in the early-to-middle stages of a multi-year upcycle," Mar Vista U.S. Quality Strategy said in its Q2 2026 investor update, noting that supply constraints at Boeing and Airbus continue to extend the lives of older fleets while driving historically high utilization of newer aircraft.

The Zacks Earnings ESP, which compares the Most Accurate Estimate to the consensus, stands at +2.79% for GE, suggesting a likely beat. The company has surpassed consensus EPS estimates in each of the trailing four quarters. In Q1 2026, orders surged 87%, led by a near-doubling in Commercial Engines & Services orders, while Defense & Propulsion Technologies orders climbed 67% — the strongest defense order intake of the decade.

GE shares have gained 39% over the past 52 weeks, hitting an all-time high of $382.97 earlier this month. The subsiding of Iran oil fears has removed a macro headwind for airlines, GE's customers, potentially supporting stronger forward guidance when the company reports Thursday.

The company's commercial services backlog exceeds $170 billion, providing multi-year revenue visibility. LEAP engines are entering heavier maintenance cycles that should support growth through the decade, according to Mar Vista. GE's defense business also saw its strongest order intake of the decade in Q1.

The Zacks Rank of No. 2 (Buy) combined with the positive Earnings ESP gives GE a strong probability of beating estimates. The model has historically predicted positive surprises nearly 70% of the time for stocks with this combination.

A guidance raise would indicate management expects aftermarket demand to accelerate further. Investors will watch the Q2 earnings call Thursday for updated segment margin targets and the trajectory of LEAP engine shop visit growth.

This article is for informational purposes only and does not constitute investment advice.