GE · 10-Q · 2026Q2 · Full report

Contract Liabilities and Long-term Service Agreements

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

Long‑term service agreement liabilities were $9,813 million at June 30, 2026 versus $10,016 million at December 31, 2025, and contract and other deferred assets totaled $8,449 million at June 30, 2026. For the six months ended June 30, 2026 revenue recognized for contracts was $5,468 million and billings were $5,208 million, with revenue recognized for contracts included in a liability position at the beginning of the year of $4,775 million (vs $3,892 million in 2025). Total contract liabilities and deferred income were $11,229 million at June 30, 2026 compared with $11,398 million at December 31, 2025, and progress collections increased primarily at CES due to collections received in excess of liquidations.

Key facts

• For CES, in Q1 2026 an unfavorable change in estimated profitability on long-term service agreements recorded was less than $0.1 billion, including a $0.1 billion reversal of a majority of the tariff-related charge in Q1 2025. source
• Contract liabilities and current deferred income at June 30, 2026: $10,159 million; total contract liabilities and deferred income including non-current: $11,229 million. source
• Current contract assets at June 30, 2026: $3,473 million; contract and other deferred assets total at June 30, 2026: $8,449 million. source

Impact estimates