GE Aerospace delivered a strong Q1 2026 with revenue up 29%, services up 39%, and engine deliveries up 43%, beating expectations. Management held full-year guidance but signaled it is trending to the high end, balancing robust backlog and near-term demand visibility against geopolitical uncertainty and rising jet fuel costs. The call highlighted significant wins in commercial and defense and emphasized supply chain as a persistent constraint despite improving output. Q1 2026 revenue +29%, EPS $1.86, FCF $1.7B; all beat expectations.
GE Aerospace delivered a strong Q1 2026 with revenue up 29%, services up 39%, and engine deliveries up 43%, beating expectations. Management held full-year guidance but signaled it is trending to the high end, balancing robust backlog and near-term demand visibility against geopolitical uncertainty and rising jet fuel costs. The call highlighted significant wins in commercial and defense and emphasized supply chain as a persistent constraint despite improving output. Q1 2026 revenue +29%, EPS $1.86, FCF $1.7B; all beat expectations.
GE Aerospace delivered a strong Q1 2026 with revenue up 29%, services up 39%, and engine deliveries up 43%, beating expectations. Management held full-year guidance but signaled it is trending to the high end, balancing robust backlog and near-term demand visibility against…
Q1 2026 revenue +29%, EPS $1.86, FCF $1.7B; all beat expectations.
Commercial Services (CES) revenue up 34%, services up 39% on strong shop visits and spare parts demand.
Defense (DPT) revenue up 19%, orders up 67% with defense book-to-bill above 2x for second straight quarter.
Management positioned AI as an accelerator for FlightDeck, citing an AI-based material assistant at Lafayette that predicts LEAP shop visit work scopes nine months in advance and supports turnaround time reductions. AI was framed as an operational efficiency tool, not a separate monetization story.
Underlying demand and backlog are robust, and first-quarter performance beat internal expectations. Management is confident in hitting the top of guidance despite geopolitical risk, leaning toward better-than-expected near-term results.
Management highlighted plans to invest $1 billion in U.S. manufacturing and supply base for a second consecutive year, including $200 million for LEAP durability upgrades and $100 million in external supplier tooling. It also cited $300 million for the Singapore repair facility, all aimed at expanding capacity, improving time on wing, and strengthening defense production.
Management acknowledged macro uncertainty and lowered departure assumptions, but expressed confidence in strong backlog and high-end delivery, creating a balanced, cautious-but-constructive tone.
“we're entering the second quarter with more than 95% of spare parts revenue already in backlog... Our pipeline of planned engine removals in the second and third quarters, combined with engines that are currently off-wing, exceeds our shop…”
“spare parts delinquency, which represents shipments that have been delayed due to material availability constraints, is up roughly 70% since the end of 2024.”
“of note, the 777X flight test program continues, right? It's ongoing. With respect to deliveries, we had deliveries in the first quarter. Currently, we're continuing to build up assembly... We'll end up having deliveries that will end up m…”
“The first quarter was about $300 million better than what we'd expected at the beginning of the year.”
“the retirement rates that we've assumed for 2026 for CFM 56 are in the 2% range. And what we saw in the first quarter is sub 1%.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $7.10–$7.40inline vs consensus | $7.25 | MAINTAINED |
| Free cash flow | FY2026 | $8B–$8.4Binline vs consensus | $8.2B | MAINTAINED |
| Op marginCES | FY2026 | 20.7%–21.7%inline vs consensus | 21.2% | MAINTAINED |
| Op marginDPT | FY2026 | 12.6%–13.4%inline vs consensus | 13% | MAINTAINED |
| Revenue | FY2026 | 10%–12%inline vs consensus | 11% | MAINTAINED |
A large, long-term order from American underscores sustained narrow-body demand and fleet growth plans for the airline.
“American recently committed to more than 300 LEED 1A engines with options for 200 more to power future A321neo and A321XLR deliveries.”
… as a repaired part can cost 50% less than a new part. At our Singapore repair facility, we're investing $300 million to support new technologies and repair processes. Our customer-driven approach is driving backlog growth with more than 650 commercial engines for over $1 billion in wins in the first quarter alone. This included extending our 50-plus year partnership with American as they celebrate their 100th anniversary this month. American recently committed to more than 300 LEED 1A engines with options for 200 more to power future A321neo and A321XLR deliveries. United, also celebrating 100 years this month, selected 300 GENX engines for its 787 fleet, making it the largest GENX operator globally. And additionally, Delta committed to 60 GENX engines with options for 60 more for its new 787 fleet, marking its first GENX selection. In services, we signed an agreement with Ryanair, covering approximately 2,000 CFM56 and LEAF engines, providing material support and MRO services to scale their in-house capabilities, consistent with our open MRO strategy. And in defense, in support of the CH-53K and the critical missions it performs for the U.S. Marine Corps, we were …
United's significant GE9X engine selection solidifies its wide-body fleet strategy and is a revenue win for GE.
“United, also celebrating 100 years this month, selected 300 GENX engines for its 787 fleet, making it the largest GENX operator globally.”
… new technologies and repair processes. Our customer-driven approach is driving backlog growth with more than 650 commercial engines for over $1 billion in wins in the first quarter alone. This included extending our 50-plus year partnership with American as they celebrate their 100th anniversary this month. American recently committed to more than 300 LEED 1A engines with options for 200 more to power future A321neo and A321XLR deliveries. United, also celebrating 100 years this month, selected 300 GENX engines for its 787 fleet, making it the largest GENX operator globally. And additionally, Delta committed to 60 GENX engines with options for 60 more for its new 787 fleet, marking its first GENX selection. In services, we signed an agreement with Ryanair, covering approximately 2,000 CFM56 and LEAF engines, providing material support and MRO services to scale their in-house capabilities, consistent with our open MRO strategy. And in defense, in support of the CH-53K and the critical missions it performs for the U.S. Marine Corps, we were awarded a $1.4 billion contract for additional T-408 turboshaft engines. With continued momentum, we're looking forward to what should be an …
Delta's first selection of the GE9X for its future 787 fleet signals a strategic shift in its wide-body engine preferences, a direct win over competitor Rolls-Royce.
… in wins in the first quarter alone. This included extending our 50-plus year partnership with American as they celebrate their 100th anniversary this month. American recently committed to more than 300 LEED 1A engines with options for 200 more to power future A321neo and A321XLR deliveries. United, also celebrating 100 years this month, selected 300 GENX engines for its 787 fleet, making it the largest GENX operator globally. And additionally, Delta committed to 60 GENX engines with options for 60 more for its new 787 fleet, marking its first GENX selection. In services, we signed an agreement with Ryanair, covering approximately 2,000 CFM56 and LEAF engines, providing material support and MRO services to scale their in-house capabilities, consistent with our open MRO strategy. And in defense, in support of the CH-53K and the critical missions it performs for the U.S. Marine Corps, we were awarded a $1.4 billion contract for additional T-408 turboshaft engines. With continued momentum, we're looking forward to what should be an exciting Farnborough air show in July. Our experience with our current fleet is also informing next-generation technology investment. RISE is …
Long-term MRO and materials agreement with Ryanair is part of GE's open MRO strategy and secures aftermarket demand.
… month. American recently committed to more than 300 LEED 1A engines with options for 200 more to power future A321neo and A321XLR deliveries. United, also celebrating 100 years this month, selected 300 GENX engines for its 787 fleet, making it the largest GENX operator globally. And additionally, Delta committed to 60 GENX engines with options for 60 more for its new 787 fleet, marking its first GENX selection. In services, we signed an agreement with Ryanair, covering approximately 2,000 CFM56 and LEAF engines, providing material support and MRO services to scale their in-house capabilities, consistent with our open MRO strategy. And in defense, in support of the CH-53K and the critical missions it performs for the U.S. Marine Corps, we were awarded a $1.4 billion contract for additional T-408 turboshaft engines. With continued momentum, we're looking forward to what should be an exciting Farnborough air show in July. Our experience with our current fleet is also informing next-generation technology investment. RISE is central to that strategy and will enable improved efficiency without sacrificing durability. This quarter, together with the Civil Aviation Authority of …
Adding Iberia to the MRO network expands GE's aftermarket capacity in Europe, a modest positive for IAG's maintenance unit.
… building on the turnaround time reduction we've recognized in both our Selma and Malaysia sites. Collectively, our efforts improved shop visit turnaround times for both narrow-body and wide-body platforms year over year. With our growing installed base, we're focused on expanding capacity to fulfill customer demand. Within the LEAP external network, Delta Tech Ops is now the first North American airline MRO provider licensed for both the LEAP 1A and LEAP 1B. And we just announced Iberia as our seventh premier MRO, supporting growth in Europe. More broadly, maintaining U.S. aerospace leadership requires sustained investment to meet customer demand. We recently announced plans to invest $1 billion in our U.S. manufacturing sites and supply base, for the second consecutive year to help accelerate engine deliveries, ramp up part production that extends time on wing, and strengthen our defense industrial base. Additionally, $100 million will be invested in our external supplier base to provide equipment and tooling to increase capacity. These actions and investments are driving meaningful progress to increase services and equipment output. And while there's more to do, we're off to a …
Expanding partnership with Kratos on the GEK-1500 engine design puts Kratos at the center of CCA and UAS propulsion development, a positive growth signal.
… operate in real-world airline environments and marked another step forward toward ground and flight tests later this decade. In defense and systems, we also continued to execute with speed against high-priority military needs in support of U.S. and allied warfighters. This quarter, deliveries were up 24%, and we continue to receive awards across our family of small engines, a key growth area as programs progress. This included an award from the U.S. Air Force to complete an initial design concept of the GEK-1500 in partnership with Kratos, with potential applications across unmanned aerial systems, collaborative combat aircraft, or CCAs, and missiles. This work is being informed by the maturity of the GEK-800, which completed successful altitude testing last fall. The team designed, built, and tested the first GEK-800 in less than 12 months, testing the fifth iteration of the engine last summer. And we're making progress with high-end CCAs through our partnership with Shield AI for the Expat Vehicle Program, pairing our propulsion development, testing, and certification expertise with their autonomous aircraft capabilities to accelerate delivery of mission-ready …
Collaboration with Airbus on the RISE open-fan testbed moves next-generation engine architecture closer to real-world application, a positive for both companies' future programs.
… it performs for the U.S. Marine Corps, we were awarded a $1.4 billion contract for additional T-408 turboshaft engines. With continued momentum, we're looking forward to what should be an exciting Farnborough air show in July. Our experience with our current fleet is also informing next-generation technology investment. RISE is central to that strategy and will enable improved efficiency without sacrificing durability. This quarter, together with the Civil Aviation Authority of Singapore and Airbus, we established the world's first airport testbed for open-fan technology as a part of the RISE program. This testing will validate how next-gen engine architectures operate in real-world airline environments and marked another step forward toward ground and flight tests later this decade. In defense and systems, we also continued to execute with speed against high-priority military needs in support of U.S. and allied warfighters. This quarter, deliveries were up 24%, and we continue to receive awards across our family of small engines, a key growth area as programs progress. This included an award from the U.S. Air Force to complete an initial design concept of the GEK-1500 in …
The 777X flight test program continues and GE9X deliveries are shifting to be second-half weighted, but full-year delivery targets are unchanged.