Industrial conglomerate GE Aerospace (NYSE: GE) reported Q2 CY2026 results topping the market’s revenue expectations, with sales up 31.5% year on year to $13.35 billion. Its non-GAAP profit of $2.02 per share was 8.6% above analysts’ consensus estimates.

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Company Overview

One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, GE Aerospace’s 18.5% annualized revenue growth over the last five years was incredible. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. GE Aerospace’s annualized revenue growth of 20.2% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

This quarter, GE Aerospace reported wonderful year-on-year revenue growth of 31.5%, and its $13.35 billion of revenue exceeded Wall Street’s estimates by 12%.

Looking ahead, sell-side analysts expect revenue to grow 6% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health.

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Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development.

GE Aerospace has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 18.4%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it’s a show of well-managed operations if they’re high when gross margins are low.

Analyzing the trend in its profitability, GE Aerospace’s operating margin rose by 1.8 percentage points over the last five years, as its sales growth gave it operating leverage.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

GE Aerospace’s EPS grew at 32.2% compounded annual growth rate over the last five years, higher than its 18.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into GE Aerospace’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, GE Aerospace’s operating margin expanded by 1.8 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For GE Aerospace, its two-year annual EPS growth of 35.5% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.

In Q2, GE Aerospace reported adjusted EPS of $2.02, up from $1.66 in the same quarter last year. This print beat analysts’ estimates by 8.6%. Over the next 12 months, Wall Street expects GE Aerospace’s full-year EPS to grow 13.4% from $7.11 to $8.06.

Key Takeaways from GE Aerospace’s Q2 Results

We were impressed by how significantly GE Aerospace blew past analysts’ revenue expectations this quarter. We were also glad its full-year EPS guidance exceeded Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The market seemed to be hoping for more, and the stock traded down 3.2% to $348.84 immediately following the results.

Should you buy the stock or not? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).