AI Takeaway
GE Aerospace delivered strong 24.7% revenue growth to $12.4B in Q1 2026, driven by robust aerospace demand, though net income dipped 3.7% to $1.9B amid rising costs and operating cash flow improved 20.8% to $1.8B.
Revenue
$12.39B
++24.73% YoY
EPS (Basic)
$1.82
-1.62% YoY
Filed · Source: SEC EDGAR 10-Q filing
Revenue surged 24.7% year-over-year to $12.4B in Q1 2026 (vs. $9.9B in Q1 2025), reflecting robust demand for GE's jet engines and services as commercial aviation continues its post-pandemic recovery and defense spending remains elevated.
Source: Source: 10-Q Income Statement Data
Net income fell 3.7% to $1.9B from $2.0B in the prior year period, indicating that cost pressures — including a 22.6% rise in R&D expense to $440M and a 23.7% increase in SG&A to $1.08B — are outpacing revenue growth at the bottom line.
Source: Source: 10-Q Income Statement Data
Operating cash flow grew 20.8% to $1.82B from $1.51B, suggesting improved working capital management and strong cash conversion from the higher revenue base, even as investing outflows deepened to -$919M from -$317M.
Source: Source: 10-Q Cash Flow Statement Data
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Upgrade to unlockGE's debt-to-equity ratio stands at a high 6.10x with a current ratio of only 1.008x, meaning current assets barely cover current liabilities of $40.0B. Any unexpected cash outflow or revenue disruption could strain the company's near-term liquidity position.
Source: Source: 10-Q Balance Sheet Data
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Upgrade to unlockReported EPS of $1.86 versus the $1.65 analyst consensus — a +13.0% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $12.39B | $9.94B | +24.73% |
Net Income | $1.9B | $1.98B | -3.74% |
EPS (Basic) | $1.82 | $1.85 | -1.62% |
EPS (Diluted) | $1.81 | $1.83 | -1.09% |
R&D Expense | $440M | $359M | +22.56% |
SG&A Expense | $1.08B | $876M | +23.74% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $128.44B | $124.12B | +3.48% |
Current Assets | $40.36B | $37.58B | +7.41% |
Total Liabilities | $110.15B | $104.65B | +5.25% |
Current Liabilities | $40.03B | $34.94B | +14.56% |
Stockholders' Equity | $18.06B | $19.25B | -6.20% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.82B | $1.51B | +20.81% |
Investing Cash Flow | $-919M | $-317M | -189.91% |
Financing Cash Flow | $-2.83B | $-2.28B | -23.95% |
Share Buybacks | $2.4B | $1.97B | +22.09% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 15.4% | — | — |
ROE | 10.5% | — | — |
ROA | 1.5% | — | — |
Current Ratio | $1.008 | — | — |
Debt to Equity | $6.1 | — | — |
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GE Aerospace reported Q1 2026 revenue of $12.4B, up 24.7% year-over-year, driven by strong aerospace demand. However, net income declined 3.7% to $1.9B as R&D and SG&A costs rose sharply, and diluted EPS came in at $1.81 versus $1.83 in Q1 2025.
GE's net income dropped 3.7% to $1.9B even as revenue surged 24.7% because operating costs rose significantly — R&D expenses increased 22.6% to $440M and SG&A jumped 23.7% to $1.08B. This cost inflation outpaced the revenue gains, compressing profitability at the bottom line.
GE's financial health shows some areas of concern: the current ratio is a thin 1.008x, the debt-to-equity ratio is elevated at 6.10x, and stockholders' equity declined 6.2% to $18.1B partly due to $2.4B in share buybacks. On the positive side, operating cash flow grew 20.8% to $1.82B, indicating solid cash generation.
GE Aerospace repurchased $2.4B worth of shares in Q1 2026, a 22.1% increase from the $1.97B bought back in Q1 2025. This aggressive capital return program reflects management confidence but has contributed to a reduction in stockholders' equity.
Key risks include GE's high financial leverage (debt-to-equity of 6.10x) and a very tight current ratio of 1.008x that leaves limited liquidity cushion. Additionally, rising R&D and SG&A costs are eroding profitability even as revenues grow strongly, and investing cash outflows nearly tripled to -$919M, signaling heavy capital commitments whose returns remain to be seen.