GE Aerospace (GE) posted a strong Q2 beat and raised its 2026 outlook, though lingering peak-aftermarket concerns may limit how much investors are willing to support the stock, RBC Capital Markets said Thursday in a report.
The aftermarket debate remains a key overhang even as GE delivered better-than-expected Q2 adjusted EPS of $2.02 and 30% growth in commercial engines and services revenue, the report said. Parts are flowing more freely, allowing GE to do more complete shop visits and boosting spare-parts revenue more than 25% in the quarter, RBC said.
GE has firm near-term demand in place, with 95% of Q3 spare-parts revenue already in backlog, the report said. Still, tougher year-over-year comparisons in H2 and early 2027 may temper the pace of services growth despite the company's raised guidance, RBC said.
RBC maintained its outperform rating on GE stock and its $400 target. At least two other analysts raised their price targets.
Price: 354.09, Change: +8.36, Percent Change: +2.42
