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Strength in Commercial Engines Unit Drives GE Aerospace: Can It Sustain?
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Key Takeaways
Commercial Engines & Services revenues rose 27% to $9.73 billion in the second quarter of 2026.
Services grew 26%, spare parts topped 25% growth and equipment revenues advanced 30%.
Major LEAP, GEnx and GE9X orders support an expected 20% segment revenue gain in 2026.
The strongest driver of GE Aerospace’s (GE - Free Report) business at the moment is the Commercial Engines & Services segment. In the second quarter of 2026, revenues from the Commercial Engines & Services segment increased 27% year over year to $9.73 billion.
The gain was driven by services growth of 26%, with internal shop visit revenues up 25%. Spare parts revenues increased more than 25%, reflecting robust aftermarket demand. Equipment revenues in the segment advanced 30%, supported by unit volume growth of 26%, including a 24% increase in LEAP deliveries. Total orders in the segment rose 18% year over year to $12.93 billion.
A growing installed base and higher utilization of engine platforms, particularly in the commercial aerospace sector, have set the stage for the company’s long-term growth. GE continues to experience strong orders for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities.
In the first half of 2026, the company secured several major engine orders and service agreements. GE recently clinched an order from Jet2 plc to supply CFM LEAP-1A engines for the latter’s Airbus A321neo aircraft. It secured an order from Copa Airlines for up to 120 LEAP-1B engines to power the airline's expanding Boeing 737 MAX fleet.
It also entered into a long-term materials agreement to support Ryanair’s fleet of about 2,000 CFM56 and LEAP engines. It also secured orders for GEnx engines from United Airlines and Delta Air Lines for their Boeing 787 Dreamliners.
With commercial aircraft programs expected to continue benefiting from the strength in air travel, GE is poised to maintain strong demand momentum in the quarters ahead. For 2026, adjusted revenues from the Commercial Engines & Services segment are expected to experience growth of about 20%.
GE's Peers in the Aerospace Market
Among its major peers, RTX Corporation (RTX - Free Report) is benefiting from strength in the commercial aerospace market, with growth in both aftermarket and OEM verticals. RTX reported 16% organic sales growth in the second quarter, driven by solid momentum in the Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.’s growth.
Another peer, Textron Inc.’s (TXT - Free Report) Aviation business unit is benefiting from improving commercial air passenger traffic. Strong commercial aircraft demand and aftermarket activity contributed to Textron Aviation unit’s revenue growth of 1% in the second quarter. Thanks to growing air travel, Textron has also been witnessing strong order activity, which resulted in a backlog of $8 billion (as of July 4, 2026) for the Aviation segment.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have gained 23.4% in the past three months compared with the industry’s growth of 8.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 44.20X, above the industry’s average of 34.03X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 earnings has gone up 5.1% over the past 60 days.
View the Zacks #1 Rank List
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Strength in Commercial Engines Unit Drives GE Aerospace: Can It Sustain?
Key Takeaways
The strongest driver of GE Aerospace’s (GE - Free Report) business at the moment is the Commercial Engines & Services segment. In the second quarter of 2026, revenues from the Commercial Engines & Services segment increased 27% year over year to $9.73 billion.
The gain was driven by services growth of 26%, with internal shop visit revenues up 25%. Spare parts revenues increased more than 25%, reflecting robust aftermarket demand. Equipment revenues in the segment advanced 30%, supported by unit volume growth of 26%, including a 24% increase in LEAP deliveries. Total orders in the segment rose 18% year over year to $12.93 billion.
A growing installed base and higher utilization of engine platforms, particularly in the commercial aerospace sector, have set the stage for the company’s long-term growth. GE continues to experience strong orders for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities.
In the first half of 2026, the company secured several major engine orders and service agreements. GE recently clinched an order from Jet2 plc to supply CFM LEAP-1A engines for the latter’s Airbus A321neo aircraft. It secured an order from Copa Airlines for up to 120 LEAP-1B engines to power the airline's expanding Boeing 737 MAX fleet.
It also entered into a long-term materials agreement to support Ryanair’s fleet of about 2,000 CFM56 and LEAP engines. It also secured orders for GEnx engines from United Airlines and Delta Air Lines for their Boeing 787 Dreamliners.
With commercial aircraft programs expected to continue benefiting from the strength in air travel, GE is poised to maintain strong demand momentum in the quarters ahead. For 2026, adjusted revenues from the Commercial Engines & Services segment are expected to experience growth of about 20%.
GE's Peers in the Aerospace Market
Among its major peers, RTX Corporation (RTX - Free Report) is benefiting from strength in the commercial aerospace market, with growth in both aftermarket and OEM verticals. RTX reported 16% organic sales growth in the second quarter, driven by solid momentum in the Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.’s growth.
Another peer, Textron Inc.’s (TXT - Free Report) Aviation business unit is benefiting from improving commercial air passenger traffic. Strong commercial aircraft demand and aftermarket activity contributed to Textron Aviation unit’s revenue growth of 1% in the second quarter. Thanks to growing air travel, Textron has also been witnessing strong order activity, which resulted in a backlog of $8 billion (as of July 4, 2026) for the Aviation segment.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have gained 23.4% in the past three months compared with the industry’s growth of 8.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 44.20X, above the industry’s average of 34.03X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 earnings has gone up 5.1% over the past 60 days.
Image Source: Zacks Investment Research
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.