GE · 10-Q · 2026Q2 · Full report

Gross Margin and Margin Drivers

GENERAL ELECTRIC CO · 2026-07-16 · Importance 61 · Surprise 32 · No source text

Profit was $2.8 billion in Q2 2026, an increase of $0.4 billion year-over-year, but profit margin declined to 21.0%, down 70 basis points versus prior-year quarter. Operating profit (Non-GAAP) was $2.7 billion in Q2 2026, up $0.4 billion, while operating profit margin declined to 21.7%, down 130 basis points, reflecting mix and inflation. Management attributes margin expansion drivers to higher internal shop visit volumes, spare parts volume and pricing, and lower unfavorable changes in estimated profitability on long-term service agreements, while margin headwinds include higher installed engine deliveries, inflation and higher growth investments. For the six-month period, operating profit rose $0.8 billion but operating profit margin (Non-GAAP) decreased 160 basis points year-over-year.

Key facts

• Profit (GAAP) for the three months ended June 30, 2026: $2,801 million and profit margin 21.0%. source
• Operating profit (Non-GAAP) for the three months ended June 30, 2026: $2,746 million and operating profit margin (Non-GAAP) 21.7%. source
• Profit for the six months ended June 30, 2026 was $5,000 million, an increase of $0.4 billion and profit margin was 19.4%, a decrease of 270 basis points. source

Impact estimates