GE Aerospace (GE) Income Statement

The sequential acceleration from 10.9% in 2025Q1 to 24.7% in 2026Q1 and 21.1% in 2026Q2 indicates a strengthening demand environment, likely driven by both volume and pricing. The growth appears organic, as no major acquisitions are evident in the data. This trajectory suggests durable expansion, though investors should monitor for potential cyclicality in aerospace aftermarket services.

The slight contraction in gross margin from 37.9% to 35.0% over the past year may reflect mix shifts or input cost inflation, but the absolute level remains strong relative to peers like RTX (20.1%) and HWM (30.7%). GE's pricing power appears intact, as margins have not deteriorated significantly despite higher volumes. However, the trend warrants monitoring for potential compression if supply chain costs escalate.

SG&A expenses have remained relatively flat, around $1.1B to $1.7B, while revenue surged from $9.0B to $13.3B. This indicates that GE is scaling efficiently, with overhead costs well-controlled. The operating margin peaked at 23.3% in 2026Q1, suggesting that the company can achieve even higher profitability as volumes grow. Investors should watch for any step-up in SG&A as the company invests in capacity.

The faster growth in COGS relative to revenue suggests input cost inflation or a shift toward lower-margin products. However, the company has managed to offset this with operating leverage, as operating margin expanded. R&D expenses have also grown, from $270M in 2024Q1 to $460M in 2026Q2, indicating continued investment in future technologies. This cost discipline appears balanced, but investors should monitor if COGS growth persists.