GE · 10-Q · 2026Q2 · Full report

Remaining Performance Obligation (RPO)

GENERAL ELECTRIC CO · 2026-07-16 · Importance 61 · Surprise 32 · In source text

Contract assets/liabilities and deferred items moved materially: long-term service agreement liabilities decreased to $9,813 million from $10,016 million, and total contract liabilities and deferred income are $11,229 million at June 30, 2026. Revenue recognized on long-term contracts was $5,468 million for the six months, partially offset by billings of $5,208 million, with revenue recognized for contracts that began in a liability position of $4,775 million (six months 2026 vs $3,892 million in 2025). The company notes net unfavorable changes in estimated profitability driven by quarterly contract margin updates, and the net liability position narrowed during the period. These flows are concentrated in long-term service agreements (largely CES) and will affect future service margin realization and cash collection timing.

Key facts

• At June 30, 2026 total RPO: $210,790 million. source
• As of June 30, 2026 RPO increased $20.2 billion, or 11%, from December 31, 2025. source
• CES segment RPO at June 30, 2026: Equipment $9,618 million; Services $170,282 million; Total RPO $179,900 million, an increase of $15.4 billion or 9% from December 31, 2025. source
• Defense & Propulsion Technologies segment total RPO at June 30, 2026: Equipment $22,467 million; Services $8,197 million; Total RPO $30,663 million, up $4.8 billion or 19% from December 31, 2025. source
• We expect approximately $5,000 million of the RPO related to GE Aerospace credit support obligations to contractually mature by the end of 2030. source
• We estimated GE Vernova RPO and other obligations that relate to GE Aerospace credit support to be approximately $7,000 million as of June 30, 2026. source
• Contract revenue recognized for long-term service agreements for the six months ended June 30, 2026: $5,468 million; billings of $5,208 million; net unfavorable changes in estimated profitability of $[amount redacted in text]. source
• Progress collections increased during the six months ended June 30, 2026 (amount not specified in text) primarily due to collections received in excess of liquidations at CES. source

Impact estimates