GE · Q2 FY2026
GENERAL ELECTRIC CO Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $13.35B | $11.02B (yr ago) | Beat |
| EPS | $2.26 | $1.89 (yr ago) | Beat |
| Free Cash Flow | $3.19B | $2.25B (yr ago) | Beat |
| Gross Margin | 52.6% | Not disclosed (yr ago) | Miss |
| Operating Margin | 21.0% | 21.7% (yr ago) | Miss |
What changed
Q2 FY2026 revenue increased 21.1% year over year to $13.35 billion, EPS rose 19.6% to $2.26, and free cash flow advanced 41.8% to $3.19 billion. Operating margin declined 0.7 percentage points year over year to 21.0%, although it recovered 3.3 percentage points sequentially from Q1 FY2026.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise. We initiate fair value at $271 per share: the quarter strengthened the operating thesis, but the current 38.2x TTM P/E already discounts continued growth and margin execution.