General Electric Co 10-Q for FY2026 Q3
General Electric Co (GE)
10-Q
2026-10-20
For: 2026-09-30
View Original
Added on
October 20, 2026
About this 10-Q
General Electric Co filed this 10-Q on October 20, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).
GE Aerospace reported total revenue growth of 16% for the three months ended September 30, 2026, with RPO up 11% from December 31, 2025; its Consolidated Precision Products acquisition is expected to close in the second half of 2027. AI summary
Headline figures
Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $14.12B
- up 15.9% from $12.18B a year earlier
- Net income
- $2.29B
- up 6.1% from net income of $2.16B a year earlier
- Diluted EPS
- $2.20
- up 8.9% from $2.02 a year earlier
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
For the quarterly period ended September 30, 2026
OR
For the transition period from ____ to ____
Commission file number 001-00035
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
(Registrant’s telephone number, including area code) (513 ) 243-2000
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
☑ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
There were 1,033,351,921 shares of common stock with a par value of $0.01 per share outstanding at September 30, 2026.
TABLE OF CONTENTS
| Page | |||||
About GE Aerospace | |||||
Corporate & Other | |||||
Statement of Operations | |||||
Note 6 Property, Plant and Equipment and Operating Leases | |||||
Note 8 Contract and Other Deferred Assets, Contract Liabilities and Deferred Income & Progress Collections | |||||
Note 18 Other Income (Loss) | |||||
Note 23 Segment Information & Remaining Performance Obligation | |||||
Other Information | |||||
FORWARD-LOOKING STATEMENTS. Our public communications and filings we make with the U.S. Securities and Exchange Commission (SEC) may contain statements related to future, not past, events. These forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "estimate," "forecast," "target," "preliminary," "range" or similar expressions. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the impacts of macroeconomic and market conditions and volatility on our business operations, financial results and financial position; conditions affecting the aerospace industry, including our customers and suppliers; our expected financial performance, including cash flows, revenue, margins, net income and earnings per share; planned and potential transactions; our credit ratings and outlooks; our funding and liquidity; our cost structures and plans to reduce costs; restructuring, impairment or other financial charges; or tax rates.
For us, particular areas where risks or uncertainties could cause our actual results to be materially different than those expressed in our forward-looking statements include:
•changes in macroeconomic and market conditions and market volatility (including risks related to recession, inflation, supply chain constraints or disruptions, interest rates, values of financial assets, oil, jet fuel and other commodity prices and exchange rates), and the impact of such changes and volatility on our business operations and financial results;
•market or other developments that may affect demand or the financial strength and performance of airframers, airlines, suppliers and other key aerospace industry participants, such as demand for air travel, supply chain or other production constraints, shifts in U.S. or foreign government defense programs and other industry dynamics;
•pricing, cost, volume and the timing of sales, deliveries, investment and production by us and our customers, suppliers or other industry participants;
•the impact of actual or potential safety or quality issues or failures of our products or third-party products with which our products are integrated, including design, production, performance, durability or other issues, and related costs and reputational effects;
•operational execution on our business plans, including our performance amidst market growth and ramping newer product platforms, meeting delivery and other contractual obligations, improving turnaround times in our services businesses and reducing costs over time;
•global economic trends, competition and geopolitical risks, including evolving impacts from tariffs, sanctions or other trade tensions between the U.S. and other countries, or demand or supply shocks from events such as a major terrorist attack, war (including the conflict in the Middle East), natural disasters or actual or threatened public health pandemics or other emergencies;
•the amount and timing of our income and cash flows, which may be impacted by macroeconomic, customer, supplier, competitive, contractual, financial or accounting (including changes in estimates) and other dynamics and conditions;
•our capital allocation plans, including the timing and amount of dividends, share repurchases, acquisitions, organic investments and other priorities;
•our decisions about investments in research and development or new products, services and platforms, and our ability to launch new products in a cost-effective manner, as well as technology developments and other dynamics that could shift the demand or competitive landscape for our products and services;
•our success in executing acquisitions and other planned and potential transactions, including the timing for such transactions, the ability to satisfy regulatory requirements or any applicable pre-conditions, business integrations and the expected benefits;
•downgrades of our credit ratings or ratings outlooks, or changes in rating application or methodology, and the related impact on our funding profile, costs, liquidity and competitive position;
•capital or liquidity needs associated with our run-off insurance operations or mortgage portfolio in Poland (Bank BPH), the amount and timing of any required future capital contributions and any strategic options that we may consider;
•changes in law, regulation or policy that may affect our business, including policies related to trade, tariffs or capital allocation; government defense priorities or budgets; environmental or climate regulation, incentives and emissions offsetting or trading regimes and the effects of tax law changes or audits;
•the impact of regulation; government investigations; regulatory, commercial and legal proceedings or disputes; environmental, health and safety matters; or other legal compliance risks, including the impact of shareholder and related lawsuits, Bank BPH and other proceedings that are described in our SEC filings;
•the impact related to information technology, cybersecurity, artificial intelligence or data security developments or breaches at GE Aerospace or third parties; and
•the other factors that are described in the "Risk Factors" section in our Annual Report on Form 10-K for the year ended December 31, 2025, as such descriptions may be updated or amended in future reports we file with the SEC.
These or other uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements. This document includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.
2026 3Q FORM 10-Q 3
ABOUT GE AEROSPACE. General Electric Company operates as GE Aerospace (GE Aerospace or the Company). GE Aerospace is a global aerospace leader with the industry's largest and growing commercial propulsion fleet. The Company’s installed base of approximately 50,000 commercial and 30,000 military engines, including parked aircraft in addition to fleet in service, supports its aftermarket services business, representing approximately 70% of revenue. Through FLIGHT DECK, the Company's proprietary lean operating model, GE Aerospace is accelerating its lean progress, prioritizing safety, quality, delivery and cost, to drive focused execution and bridge strategy to results. We are focused on delivering against our strategic priorities of today (ramping services and equipment), tomorrow (expanding capacity and capabilities) and the future (inventing the future of flight). Our global team is building on more than a century of innovation and learning, as we invent the future of flight, lift people up and bring them home safely.
GE Aerospace’s Internet address at www.geaerospace.com and Investor Relations website at www.geaerospace.com/investor-relations, as well as GE Aerospace’s LinkedIn and other social media accounts, contain a significant amount of information about GE Aerospace, including financial and other information for investors. GE Aerospace encourages investors to visit these websites from time to time, as information is updated and new information is posted.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A). The consolidated financial statements of GE Aerospace are prepared in conformity with U.S. generally accepted accounting principles (GAAP). Unless otherwise noted, tables are presented in U.S. dollars in millions. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented in this report are calculated from the underlying numbers in millions. Discussions throughout this MD&A are based on continuing operations unless otherwise noted. The MD&A should be read in conjunction with the Financial Statements and Notes to the consolidated financial statements.
In the accompanying analysis of financial information, we sometimes use information derived from consolidated financial data but not presented in our financial statements prepared in accordance with GAAP. Certain of these data are considered “non-GAAP financial measures” under SEC rules. See the Non-GAAP Financial Measures section for the reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures.
BUSINESS OVERVIEW AND ENVIRONMENT. As a global aerospace company, our worldwide operations can be affected by industrial, economic, and political factors on both a regional and global level. Demand for our equipment and services is demonstrated by our backlog of engine and services orders on our growing installed base, and tends to follow commercial air travel and freight demand and government funding for defense budgets. We expect a significant ramp in our delivery of engine units and services for newer product platforms in the years ahead to meet this demand. Refer to the Segment Operations sections for Commercial Engines & Services (CES) and Defense & Propulsion Technologies (DPT) below for additional detail about these dynamics for our commercial and defense businesses, respectively.
We are investing in our manufacturing facilities, overhaul facilities and our supply chain, both internally and through business acquisitions, to increase production and strengthen yield in order to improve delivery to our customers. We are leveraging FLIGHT DECK and partnering with suppliers to improve material input while also proactively managing the impact of inflationary pressure by driving cost productivity and adjusting the pricing of our products and services. We expect the impact of supply chain constraints to continue to impact our production and delivery to customers and expect inflationary trends to persist. However, through FLIGHT DECK and the engagement with our suppliers, we are taking actions to mitigate these impacts and our aftermarket output and engine deliveries have continued to improve quarter over quarter.
We support efforts to revitalize domestic manufacturing and are planning to invest $1 billion in U.S. manufacturing and hire 5,000 U.S. workers in 2026, including both engineering and manufacturing roles. At the same time, we support promoting free and fair trade that ensures the continued strength of the U.S. aerospace industry.
In a further effort to support and expand our capacity and accelerate new engine technology, during the third quarter of 2026, GE Aerospace signed an agreement to acquire Consolidated Precision Products (CPP), a leading manufacturer of highly engineered castings and sub-assemblies primarily for the commercial aerospace and defense markets, with a purchase price of $11.75 billion. We plan to fund the acquisition with approximately $7 billion in cash and the remainder in new debt. This transaction is expected to close in the second half of 2027 and will be subject to regulatory approvals and other customary closing conditions.
As we operate in a highly dynamic tariff environment, we remain focused on delivering our products and services to our customers. Given our global business, tariffs result in additional cost for us and our suppliers. In 2025, the U.S. established a zero-for-zero tariff agreement on aerospace equipment with the EU, UK, Japan and Korea, establishing a mutual elimination of tariffs. In 2026, the Supreme Court ruled against tariffs imposed under the International Emergency Economic Powers Act (IEEPA). In the first nine months of 2026, GE Aerospace submitted refund requests and received a portion of previously paid IEEPA tariffs. We will continue to monitor recent developments on tariff policy and evaluate any changes to the applicability of tariffs to our business as they occur.
We are monitoring recent developments related to the conflict in the Middle East and the potential impact on the global economy and commercial aerospace industry, including lower utilization and increased prices, which can result in adverse effects on our airline customers. As a result, the impacts to our business may include lower volume related to shop visits, spare parts and spare engines and lower profitability of our long term contracts, as well as customer credit implications. We remain confident in our ability to navigate this with our young and diverse fleet, and we are also proactively taking action on costs. This did not result in a material impact on our operations in the nine months ended September 30, 2026.
4 2026 3Q FORM 10-Q
On January 15, 2026, we announced that our CES segment will expand to include the entire commercial engine lifecycle, including safety and quality, product management, engineering, supply chain, manufacturing and aftermarket services. In addition, our Aeroderivative business, previously reported in CES, has moved to our DPT segment. See Note 23 for further information.
CONSOLIDATED RESULTS
| REVENUE | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Equipment revenue | $ | 3,924 | $ | 3,163 | $ | 10,794 | $ | 8,659 | ||||||||||||
| Services revenue | 9,361 | 8,143 | 26,739 | 21,798 | ||||||||||||||||
| Insurance revenue | 833 | 875 | 2,326 | 2,681 | ||||||||||||||||
| Total revenue | $ | 14,118 | $ | 12,181 | $ | 39,859 | $ | 33,138 | ||||||||||||
For the three months ended September 30, 2026, total revenue increased $1.9 billion, or 16%, compared to the three months ended September 30, 2025. Equipment revenue increased, driven by increased engine deliveries and improved pricing. Services revenue increased due to growth in internal shop visit volume with heavier workscopes, higher spare parts volume and pricing.
For the nine months ended September 30, 2026, total revenue increased $6.7 billion, or 20%, compared to the nine months ended September 30, 2025. Equipment revenue increased, driven by increased engine deliveries and improved pricing. Services revenue increased due to growth in internal shop visit volume with heavier workscopes, higher spare parts volume and pricing.
| NET INCOME (LOSS) AND EARNINGS (LOSS) PER SHARE (EPS) | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||
(Per-share in dollars and diluted) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||
| Net income (loss) from continuing operations attributable to common shareholders | $ | 2,412 | $ | 2,174 | $ | 6,750 | $ | 6,149 | ||||||||||||
| Continuing EPS | $ | 2.32 | $ | 2.04 | $ | 6.44 | $ | 5.73 | ||||||||||||
For the three months ended September 30, 2026, net income from continuing operations increased $0.2 billion compared to the three months ended September 30, 2025, driven by an increase in segment profit of $0.5 billion, a decrease in Adjusted Corporate & Other operating costs* of $0.2 billion and an increase in gains (losses) on retained and sold ownership interests and other equity securities of $0.1 billion. The increase was partially offset by a decrease in Insurance profit of $0.6 billion. Adjusted net income* was $2.3 billion, an increase of $0.6 billion, due to an increase in segment profit of $0.5 billion and a decrease in Adjusted Corporate & Other operating costs* of $0.2 billion.
Profit was $2.8 billion, an increase of $0.3 billion and profit margin was 19.9%, a decrease of 80 basis points. Operating profit* was $3.0 billion, an increase of $0.7 billion and operating profit margin* was 22.5%, an increase of 220 basis points. Adjusted EPS* was $2.25, an increase of 36%.
For the nine months ended September 30, 2026, net income from continuing operations increased $0.6 billion compared to the nine months ended September 30, 2025, driven by an increase in segment profit of $1.6 billion, partially offset by decrease in Insurance profit of $0.6 billion, an increase in Adjusted Corporate & Other operating costs* of $0.1 billion, a decrease in gains (losses) on retained and sold ownership interests and other equity securities of $0.1 billion and an increase in interest and other financial charges of $0.1 billion. Adjusted net income* was $6.4 billion, an increase of $1.3 billion, due to an increase in segment profit of $1.6 billion, partially offset by an increase in Adjusted Corporate & Other operating costs* of $0.1 billion and an increase in interest and other financial charges of $0.1 billion.
Profit was $7.8 billion, an increase of $0.7 billion and profit margin was 19.6%, a decrease of 200 basis points. Operating profit* was $8.3 billion, an increase of $1.5 billion and operating profit margin* was 22.0%, a decrease of 30 basis points. Adjusted EPS* was $6.13, an increase of 28%.
Remaining performance obligation (RPO) is unfilled customer orders for products and product services (expected life of contract sales for product services) excluding any purchase order that provides the customer with the ability to cancel or terminate without incurring a substantive penalty. See Note 23 for further information.
| RPO | September 30, 2026 | December 31, 2025 | |||||||||
| Equipment | $ | 33,337 | $ | 27,534 | |||||||
| Services | 178,747 | 163,029 | |||||||||
| Total RPO | $ | 212,084 | $ | 190,564 | |||||||
As of September 30, 2026, RPO increased $21.5 billion, or 11%, from December 31, 2025, primarily at CES, as a result of commercial actions and increases to existing long-term service agreements, and at DPT, driven by Defense & Systems equipment orders outpacing revenue recognized.
*Non-GAAP Financial Measure
2026 3Q FORM 10-Q 5
SEGMENT OPERATIONS
COMMERCIAL ENGINES & SERVICES. We are in frequent communication with our airline, airframe and maintenance, repair and overhaul (MRO) customers about the outlook for commercial air travel, new aircraft production, fleet retirements and after-market services, including shop visit and spare parts demand. In the first nine months of 2026, there was a strong demand for engines and services, while commercial air travel departures were slightly up.
In the nine months ended September 30, 2026, we announced significant new deals with several major customers. United Airlines and Delta Airlines selected our GENx engines to power their widebody Boeing 787 Dreamliner orders. American Airlines and Copa Airlines selected LEAP engines for their narrowbody orders. Ryanair signed a long-term material services agreement to support their entire fleet of about 2,000 CFM56 and LEAP engines powering its Boeing 737 aircraft. IndiGo agreed to a historical Memorandum of Understanding (MOU) for more than 1,000 LEAP-1A engines, the largest LEAP agreement, to power its Airbus A320neo aircraft. We also announced an agreement with Turkish Airlines for up to 300 LEAP-1B engines to power its 737MAX fleet.
To meet the strong demand, we are investing in our manufacturing and overhaul facilities and continue to strengthen our external global MRO network to support LEAP aftermarket demand by adding Iberia as the seventh Premier MRO and expanding Delta TechOps capabilities for both LEAP 1-A and LEAP 1-B engines. We are also deploying engineering and supply chain resources to increase production, expand capacity and strengthen yield.
These investments combined with improved material availability contributed to internal shop visit revenue growth of 23% in the first nine months of 2026, and total engine deliveries and LEAP engine deliveries increases of 25% and 26%, respectively. In the three months ended September 30, 2026, we delivered GE9X engines with the upgraded midseal, for which the financial impact from these shipments will be recognized post certification from the Federal Aviation Administration (FAA).
Total engineering investments, both company and partner-funded, increased compared to prior year, and we continue to improve our products and advance our future of flight priorities. We recently completed the certification for the LEAP 1-B durability kit, including the upgraded HPT blade, which is expected to deliver approximately double time-on-wing for that engine. And for future of flight, during the first nine months of 2026, together with the Civil Aviation Authority of Singapore and Airbus, we established the world’s first airport test bed for RISE technologies, focused on Open Fan. In addition, alongside the National Aeronautics and Space Administration (NASA), BETA Technologies and Boeing, we achieved the first high-altitude hybrid electric flight.
| Sales in units, except where noted | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Commercial Engines | 690 | 641 | 1,989 | 1,592 | ||||||||||||||||
| LEAP Engines(a) | 535 | 511 | 1,565 | 1,240 | ||||||||||||||||
| Internal shop visit revenue growth % | 12 | % | 33 | % | 23 | % | 22 | % | ||||||||||||
| (a) LEAP engines, which are in a significant production ramp, are a subset of Commercial Engines. | ||||||||||||||||||||
| SEGMENT REVENUE AND PROFIT | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||
| Equipment | $ | 2,607 | $ | 1,892 | $ | 7,006 | $ | 5,406 | |||||||||||||||||||||||||||
| Services | 7,735 | 6,629 | 21,986 | 17,424 | |||||||||||||||||||||||||||||||
| Total segment revenue | $ | 10,342 | $ | 8,521 | $ | 28,992 | $ | 22,830 | |||||||||||||||||||||||||||
| Segment profit | $ | 2,887 | $ | 2,384 | $ | 7,899 | $ | 6,501 | |||||||||||||||||||||||||||
| Segment profit margin | 27.9 | % | 28.0 | % | 27.2 | % | 28.5 | % | |||||||||||||||||||||||||||
For the three months ended September 30, 2026, revenue was up $1.8 billion, or 21%, and profit was up $0.5 billion, or 21%, compared to the three months ended September 30, 2025.
Revenue increased due to growth in internal shop visit volume with heavier workscope, increased spare parts volume, increased engine deliveries and pricing.
Profit increased primarily due to higher internal shop visit volume and heavier workscope, increased spare parts volume and price. These increases were partially offset by mix, higher growth investment and inflation.
For the nine months ended September 30, 2026, revenue was up $6.2 billion, or 27%, and profit was up $1.4 billion, or 21%, compared to the nine months ended September 30, 2025.
Revenue increased due to growth in internal shop visit volume with heavier workscope, increased spare parts volume, increased engine deliveries and pricing.
Profit increased primarily due to higher internal shop visit volume and heavier workscope, increased spare parts volume, price and a lower unfavorable change in estimated profitability on long-term service agreements, primarily driven by the absence of charges. In the first nine months of 2026, we recorded an unfavorable change in estimated profitability on long-term service agreements of $0.1 billion, including a $0.1 billion reversal of a majority of the tariff-related charge in the first quarter of 2025. These increases were partially offset by the impact of higher install engine deliveries, higher growth investment and inflation.
6 2026 3Q FORM 10-Q
| RPO | September 30, 2026 | December 31, 2025 | |||||||||
| Equipment | $ | 10,201 | $ | 9,773 | |||||||
| Services | 170,227 | 154,712 | |||||||||
| Total RPO | $ | 180,428 | $ | 164,485 | |||||||
As of September 30, 2026, RPO increased $15.9 billion, or 10%, from December 31, 2025, as a result of commercial actions and increases to existing long-term service agreements.
DEFENSE & PROPULSION TECHNOLOGIES. Our results in the third quarter of 2026 reflect domestic and international government defense departments’ focus on modernizing and scaling their forces while maintaining flight operations, driving services demand. A key underlying driver of our business is government funding, as most of the revenue in Defense & Systems is derived from funding that flows through the U.S. Department of War budget or equivalent international budgets. Defense & Systems engine deliveries showed progress in the first nine months of 2026, increasing 11%, supported by improved material supply.
In the nine months ended September 30, 2026, GE Aerospace was awarded a NAVAIR contract to supply T408-GE-400 engines for the U.S. Marine Corps' Sikorsky CH-53K King Stallion helicopter. We announced a contract award from Turkish Aerospace Industries (TAI) to continue integrating the GE Aerospace F404 engine into Türkiye's jet trainer Hurjet. Defense was also awarded a five-year contract to provide ongoing support for the F414 engines powering U.S. Navy's F/A-18 and EA-18G fleets.
| Sales in units | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Defense & Systems engines(a) | 202 | 195 | 586 | 530 | ||||||||||||||||
(a) Includes Defense and Aeroderivative units.
| SEGMENT REVENUE AND PROFIT | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||
| Defense & Systems (D&S) | $ | 2,259 | $ | 2,153 | $ | 6,561 | $ | 5,960 | |||||||||||||||||||||||||||
| Propulsion & Additive Technologies (P&AT) | 1,210 | 1,098 | 3,564 | 2,967 | |||||||||||||||||||||||||||||||
| Total segment revenue | $ | 3,469 | $ | 3,251 | $ | 10,126 | $ | 8,927 | |||||||||||||||||||||||||||
| Equipment | $ | 1,754 | $ | 1,665 | $ | 5,103 | $ | 4,357 | |||||||||||||||||||||||||||
| Services | 1,715 | 1,586 | 5,022 | 4,570 | |||||||||||||||||||||||||||||||
| Total segment revenue | $ | 3,469 | $ | 3,251 | $ | 10,126 | $ | 8,927 | |||||||||||||||||||||||||||
| Segment profit | $ | 475 | $ | 440 | $ | 1,329 | $ | 1,169 | |||||||||||||||||||||||||||
| Segment profit margin | 13.7 | % | 13.5 | % | 13.1 | % | 13.1 | % | |||||||||||||||||||||||||||
For the three months ended September 30, 2026, revenue was up $0.2 billion, or 7%, and profit was up less than $0.1 billion, or 8%, compared to the three months ended September 30, 2025.
D&S and P&AT revenue increased primarily due to increased volume and price, including higher engine deliveries in D&S.
Profit increased primarily due to volume and price, partially offset by mix and inflation.
For the nine months ended September 30, 2026, revenue was up $1.2 billion, or 13%, and profit was up $0.2 billion, or 14%, compared to the nine months ended September 30, 2025.
D&S and P&AT revenue increased primarily due to increased volume and price, including higher engine deliveries in D&S.
Profit increased primarily due to volume and price, partially offset by incremental investments to support next-generation products, inflation and mix.
| RPO | September 30, 2026 | December 31, 2025 | |||||||||
| Equipment | $ | 23,137 | $ | 17,762 | |||||||
| Services | 8,294 | 8,094 | |||||||||
| Total RPO | $ | 31,431 | $ | 25,856 | |||||||
As of September 30, 2026, RPO increased $5.6 billion, or 22%, from December 31, 2025, primarily due to increases in equipment from orders outpacing revenue recognized.
CORPORATE & OTHER. Corporate & Other revenue includes our run-off insurance operations revenue and the elimination of intercompany activities. Corporate & Other operating profit includes Corporate functions and operations costs, certain costs of our principal retirement plans, significant, higher-cost restructuring programs, separation costs, profit (loss) of our run-off insurance operations, U.S. tax equity profit (loss), transition services agreements, environmental health and safety (EHS) impacts and other costs, as well as certain amounts that are not included in operating segment results because they are excluded from measurement of their operating performance for internal and external purposes.
2026 3Q FORM 10-Q 7
| REVENUE AND OPERATING PROFIT (COST) | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Insurance revenue (Note 12) | $ | 833 | $ | 875 | $ | 2,326 | $ | 2,681 | ||||||||||||
| Eliminations and other | (526) | (466) | (1,585) | (1,300) | ||||||||||||||||
| Corporate & Other revenue | $ | 307 | $ | 409 | $ | 741 | $ | 1,381 | ||||||||||||
| Gains (losses) on purchases and sales of business interests | — | 3 | 24 | 3 | ||||||||||||||||
| Gains (losses) on retained and sold ownership interests and other equity securities | 117 | 8 | (127) | 18 | ||||||||||||||||
| Restructuring and other charges (Note 19) | 28 | (22) | (22) | (49) | ||||||||||||||||
| Separation costs (Note 19) | (3) | (53) | (93) | (150) | ||||||||||||||||
| Insurance profit (loss) (Note 12) | (210) | 361 | 91 | 714 | ||||||||||||||||
| U.S. tax equity profit (loss) | (70) | (52) | (199) | (157) | ||||||||||||||||
| Adjusted Corporate & Other operating costs (Non-GAAP) | (373) | (525) | (966) | (887) | ||||||||||||||||
| Corporate & Other operating profit (cost) (GAAP) | $ | (511) | $ | (279) | $ | (1,291) | $ | (509) | ||||||||||||
| Less: gains (losses), impairments, Insurance, and restructuring & other | (137) | 246 | (325) | 379 | ||||||||||||||||
| Adjusted Corporate & Other operating costs (Non-GAAP) | $ | (373) | $ | (525) | $ | (966) | $ | (887) | ||||||||||||
| Corporate & Other profit (costs) | (217) | (381) | (462) | (487) | ||||||||||||||||
| Eliminations | (156) | (144) | (504) | (400) | ||||||||||||||||
| Adjusted Corporate & Other operating costs (Non-GAAP) | $ | (373) | $ | (525) | $ | (966) | $ | (887) | ||||||||||||
Adjusted Corporate & Other operating costs* excludes gains (losses) on purchases and sale of business interests, gains (losses) on retained and sold ownership interests and other equity securities, higher-cost restructuring programs, separation costs, our run-off insurance operations, and U.S. tax equity profit (loss). We believe that adjusting Corporate & Other costs to exclude the effects of items that are not closely associated with ongoing operations provides management and investors with a meaningful measure that increases the period-to-period comparability of our ongoing corporate costs.
For the three months ended, September 30, 2026, revenue decreased by $0.1 billion compared to the three months ended September 30, 2025, primarily due to lower run-off insurance operations revenue and higher intercompany eliminations. Corporate & Other operating cost increased by $0.2 billion due to $0.6 billion of higher insurance losses partially offset by $0.2 billion of lower Adjusted Corporate & Other operating costs,* $0.1 billion of higher gains on retained and sold ownership interests and other equity securities, and $0.1 billion of lower restructuring and separation costs.
Adjusted Corporate & Other operating costs* decreased by $0.2 billion due to lower functional costs and lower EHS costs.
For the nine months ended, September 30, 2026, revenue decreased by $0.6 billion compared to the nine months ended September 30, 2025, primarily due to lower run-off insurance operations revenue and higher intercompany eliminations. Corporate & Other operating cost increased by $0.8 billion, primarily due to $0.6 billion of lower run-off insurance operations profit, $0.1 billion of higher losses on retained and sold ownership interests and other equity securities, and $0.1 billion of higher Adjusted Corporate & Other operating costs*.
Adjusted Corporate & Other operating costs* increased by $0.1 billion due to higher intercompany profit eliminations.
OTHER CONSOLIDATED INFORMATION
RESTRUCTURING AND SEPARATION COSTS. Significant, higher-cost restructuring programs, primarily related to the separations, are excluded from measurement of segment operating performance for internal and external purposes; those excluded amounts are reported in Restructuring and other charges for Corporate. In addition, we incur costs associated with separation activities, which are also excluded from measurement of segment operating performance for internal and external purposes. We have completed separation activities, including the transition services agreement with GE Vernova, and expect an insignificant amount of costs for the remainder of 2026. See Note 19 for further information on restructuring and separation costs.
INTEREST AND OTHER FINANCIAL CHARGES were $0.2 billion for both the three months ended September 30, 2026 and 2025, and $0.7 billion and $0.6 billion for the nine months ended September 30, 2026 and 2025, respectively. The primary components of interest and other financial charges are interest on short-term and long-term borrowings and interest on tax deficiencies.
POSTRETIREMENT BENEFIT PLANS. Refer to Note 13 for information about our pension and retiree benefit plans.
INCOME TAXES. For the three months ended September 30, 2026, the effective income tax rate was 13.7% which is consistent with the 13.7% for the three months ended September 30, 2025. The effective tax rate in the current period was impacted by lower tax benefits from business tax credits, which was offset by higher tax benefits related to global activities, including the impact of the One Big Beautiful Bill Act (OBBBA).
*Non-GAAP Financial Measure
8 2026 3Q FORM 10-Q
For the three months ended September 30, 2026, the adjusted effective income tax rate* was 15.2% compared to 15.0% for the three months ended September 30, 2025. The increase in the adjusted effective tax rate* was primarily attributable to lower tax benefits from business tax credits, partially offset by higher tax benefits related to global activities, including the impact of the OBBBA.
For the nine months ended September 30, 2026, the effective income tax rate was 13.4% compared to 14.2% for the nine months ended September 30, 2025. The decrease in the effective tax rate was primarily attributable to higher tax benefits related to global activities, including the impact of the OBBBA, partially offset by lower tax benefits from business tax credits.
For the nine months ended September 30, 2026, the adjusted effective income tax rate* was 15.6% compared to 17.1% for the nine months ended September 30, 2025. The decrease in the adjusted effective tax rate* was primarily attributable to higher tax benefits related to global activities, including the impact of the OBBBA, partially offset by lower tax benefits from business tax credits.
Refer to Note 15 for discussion of the 2016-2020 Internal Revenue Service (IRS) audit status.
DISCONTINUED OPERATIONS. Our former GE Vernova business, our mortgage portfolio in Poland (Bank BPH) and other trailing assets and liabilities associated with prior dispositions are included in discontinued operations. Results of operations, financial position and cash flows for these businesses are reported as discontinued operations for all periods presented and the notes to the financial statements have been adjusted on a retrospective basis. See Note 2 for further information regarding our businesses in discontinued operations.
CAPITAL RESOURCES AND LIQUIDITY
FINANCIAL POLICY. GE Aerospace is committed to maintaining strong investment grade ratings with a disciplined capital allocation strategy. The Company will continue its commitment to investing and developing technologies that improve safety, durability, reliability and efficiency for our current engine products over their lifecycle and for the future of flight, and expanding our manufacturing and MRO capacity through research and development and capital expenditures. We intend to return a portion of our free cash flow* to shareholders through dividends and share repurchases. Merger and acquisition investments will be pursued in a disciplined way and focused on those that offer strategic, operational and financial synergies.
LIQUIDITY POLICY. We maintain a strong focus on liquidity and define our liquidity risk tolerance based on sources and uses to maintain a sufficient liquidity position to meet our business needs and financial obligations under both normal and stressed conditions. We believe that our consolidated liquidity and availability under our revolving credit facilities will be sufficient to meet our liquidity needs.
CONSOLIDATED LIQUIDITY. Our primary sources of liquidity consist of cash, cash equivalents, time deposits with maturities greater than three months, free cash flow* from our operating businesses, and access to capital markets. If needed, we can also draw from short-term borrowing facilities, including revolving credit facilities. Cash generation can be subject to variability based on many factors, including receipt of down payments on large equipment orders, timing of billings on long-term contracts, timing of customer allowances and market conditions. At September 30, 2026, our sources of liquidity of $10.3 billion included cash, cash equivalents and restricted cash of $8.8 billion and time deposits with maturities greater than three months classified as All other current assets of $1.5 billion. Of these amounts, $6.6 billion was held in the U.S. and $3.7 billion was held outside the U.S.
Cash held outside the U.S. has generally been reinvested in active foreign business operations; however, substantially all of our unrepatriated income has been subject to U.S. federal tax and, if there is a change in reinvestment, we would expect to be able to repatriate available cash (excluding amounts held in countries with currency controls) without significant tax cost.
Cash, cash equivalents and restricted cash at September 30, 2026 included $0.5 billion of cash held in countries with currency control restrictions, which may restrict the transfer of funds to the U.S. or limit our ability to transfer funds to the U.S. without incurring substantial costs. Excluded from cash, cash equivalents and restricted cash is $0.8 billion of cash in our run-off insurance operations, which is classified as All other assets in the Statement of Financial Position, and $0.7 billion of cash in our discontinued operations held by Bank BPH (see Note 2).
Under the current authorization, we repurchased 11.9 million shares for $4.0 billion in 2026, including repurchases of 5.9 million shares for $2.1 billion using accelerated share repurchases as a mechanism to achieve planned repurchase volumes within a quarter during closed windows.
During the third quarter of 2026, the Company announced that it signed an agreement to acquire CPP for $11.75 billion. We plan to fund the acquisition with approximately $7 billion in cash and the remainder in new debt. The transaction is expected to close in the second half of 2027 and will be subject to regulatory approvals and other customary closing conditions.
BORROWINGS. Consolidated total borrowings were $19.3 billion and $20.5 billion at September 30, 2026 and December 31, 2025, respectively. The decrease of $1.2 billion is primarily due to maturities and changes in foreign currency exchange rates, partially offset by $0.5 billion issued under the Company's new commercial paper program. We started the new commercial paper program in lieu of issuing long term debt to help diversify our funding sources. The Company also holds a five-year unsecured revolving credit facility, maturing in 2029, in an aggregate committed amount of $3.0 billion, with zero outstanding at September 30, 2026.
*Non-GAAP Financial Measure
2026 3Q FORM 10-Q 9
CREDIT RATINGS AND CONDITIONS. We have relied, and may continue to rely, on the short- and long-term debt capital markets to fund, among other things, a significant portion of our operations. The cost and availability of debt financing is influenced by our credit ratings. Moody’s Investors Service (Moody’s) and Standard and Poor’s Global Ratings (S&P) currently issue ratings on our short- and long-term debt. On February 2, 2026, Moody's upgraded our long-term rating from A3 to A2, our short-term rating from P-2 to P-1 and maintained our positive outlook. On April 16, 2026, S&P revised our outlook from stable to positive, and affirmed our short-term rating of A-2 and our long-term rating of A-. Our credit ratings as of the date of this filing are set forth in the table below.
| Moody's | S&P | |||||||
| Outlook | Positive | Positive | ||||||
| Short term | P-1 | A-2 | ||||||
| Long term | A2 | A- | ||||||
Our ratings may be subject to a revision or withdrawal at any time by the assigning rating organization, and each rating should be evaluated independently of any other rating.
Our unused back-up revolving syndicated credit facility contains a customary net debt-to-EBITDA financial covenant, which we satisfied at September 30, 2026.
FOREIGN EXCHANGE RISK. As a result of our global operations, we generate and incur a small portion of our revenue and expenses in currencies other than the U.S. dollar. Such principal currencies include the euro, the British sterling pound and Brazilian real. The effect of foreign currency fluctuations on income was insignificant. See Note 20 for further information about our risk exposures, our use of derivatives, and the effects of this activity on our financial statements.
STATEMENT OF CASH FLOWS
CASH FLOWS FROM CONTINUING OPERATIONS. The most significant source of cash flows from operating activities (CFOA) is customer-related activities, the largest of which is collecting cash resulting from product or services sales. The most significant operating use of cash is to pay our suppliers, employees, tax authorities and postretirement plans.
Cash from operating activities was $7.3 billion for the nine months ended September 30, 2026, an increase of $0.9 billion compared to 2025, primarily due to: an increase in net income (after adjusting for depreciation of property, plant, and equipment, and amortization of intangible assets) driven by all segments, an increase in sales discounts and allowances, partially offset by higher working capital growth.
Cash from sales discounts and allowances was $1.6 billion for the nine months ended September 30, 2026, an increase of $1.0 billion compared to 2025, primarily due to increases in allowances on new engine installs and spare parts in CES.
The cash impact from changes in working capital was $(1.8) billion for the nine months ended September 30, 2026, an increase in cash used of $(0.9) billion compared to 2025, due to: current receivables of $(1.1) billion, driven by higher volume, partially offset by higher collections primarily in CES; current contract assets, contract liabilities and current deferred income of $(0.5) billion, driven by higher revenue recognition and a lower unfavorable change in estimated profitability on long-term service agreements, primarily driven by the absence of charges, including a $0.1 billion reversal of a majority of the tariff-related charge from the first quarter of 2025, partially offset by higher billings; and accounts payable of $(0.6) billion, driven by higher disbursements partially offset by higher volume. These increases were partially offset by inventories, including deferred inventory, of $0.8 billion, driven by higher output and lower tariffs, partially offset by higher material input; and progress collections of $0.4 billion, driven by higher collections primarily in CES.
The components of All other operating activities included:
| Nine months ended September 30 | 2026 | 2025 | |||||||||
| Increase (decrease) in employee benefit liabilities | $ | (55) | $ | 252 | |||||||
| Net restructuring and other charges/(cash expenditures) | (23) | (36) | |||||||||
| Other deferred assets | (138) | 127 | |||||||||
| Other | 117 | (162) | |||||||||
| All other operating activities | $ | (100) | $ | 180 | |||||||
Cash used for investing activities was $(2.9) billion for the nine months ended September 30, 2026, an increase of $1.6 billion compared to 2025, primarily due to purchases of time deposits with maturities greater than three months of $1.5 billion (a component of all other investing activities). Cash used for additions to property, plant and equipment and internal-use software net of dispositions (components of free cash flow*) was $0.8 billion and $0.8 billion for the nine months ended September 30, 2026 and 2025, respectively.
Cash used for financing activities was $(8.5) billion for the nine months ended September 30, 2026, an increase of $2.6 billion compared to 2025, primarily due to: lower long-term debt issuance of $2.0 billion, higher treasury share repurchases of $1.0 billion and higher dividends paid to shareholders of $0.3 billion, partially offset by commercial paper issuance of $0.5 billion in 2026.
*Non-GAAP Financial Measure
10 2026 3Q FORM 10-Q
CRITICAL ACCOUNTING ESTIMATES. Please refer to the Critical Accounting Estimates and Other Items sections within MD&A and Note 1 to the consolidated financial statements of our Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of our accounting policies and critical accounting estimates.
OTHER ITEMS
INSURANCE. Our 2026 annual review of future policy benefit reserves cash flow assumptions resulted in an increase in net future policy benefit reserves, after reinsurance recoverables and a pre-tax charge to earnings of $328 million ($259 million, after-tax), primarily related to claims experience and long-term care cost of care inflation, partially offset by premium rate increases. The sensitivities with respect to the impact of changes of key cash flow assumptions underlying our future policy benefit reserves included in our Annual Report on Form 10-K for the year ended December 31, 2025, have not materially changed. See Capital Resources and Liquidity and Notes 3 and 12 for further information related to our run-off insurance operations.
NEW ACCOUNTING STANDARDS. In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). The amendments increase disclosure requirements primarily through enhanced disclosures about types of expenses (including purchases of inventory, employee compensation, depreciation, and amortization) in commonly presented expense captions. The ASU is effective for fiscal years beginning after December 15, 2026, and is required to be applied prospectively with the option for retrospective application. We are currently evaluating the impact that this guidance will have on the disclosures within our consolidated financial statements.
In December 2025, the FASB issued ASU No. 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. The amendment establishes a framework for the recognition, measurement, and presentation of government grants received by business entities. The ASU is effective for fiscal years beginning after December 15, 2028 with adoption permitted on a modified prospective, modified retrospective, or retrospective basis. We are currently evaluating the impact that this guidance will have on our consolidated financial statements.
NON-GAAP FINANCIAL MEASURES. We believe that presenting non-GAAP financial measures provides management and investors useful measures to evaluate performance and trends of the total company and its businesses. This includes adjustments in recent periods to GAAP financial measures to increase period-to-period comparability following actions to strengthen our overall financial position and how we manage our business. In addition, management recognizes that certain non-GAAP terms may be interpreted differently by other companies under different circumstances. In various sections of this report we have made reference to the following non-GAAP financial measures in describing our (1) revenue, specifically, Adjusted revenue, (2) profit, specifically, Operating profit and Operating profit margin; Adjusted net income (loss); Adjusted earnings (loss) per share (EPS) and Adjusted effective income tax rate, and (3) cash flows, specifically free cash flow (FCF). The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow.
2026 3Q FORM 10-Q 11
| ADJUSTED REVENUE, OPERATING PROFIT AND PROFIT MARGIN (NON-GAAP) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Total revenue (GAAP) | $ | 14,118 | $ | 12,181 | $ | 39,859 | $ | 33,138 | |||||||||||||||
| Less: Insurance revenue (Note 12) | 833 | 875 | 2,326 | 2,681 | |||||||||||||||||||
| Adjusted revenue (Non-GAAP) | $ | 13,285 | $ | 11,305 | $ | 37,533 | $ | 30,457 | |||||||||||||||
| Total costs and expenses (GAAP) | $ | 11,745 | $ | 9,951 | $ | 32,784 | $ | 26,874 | |||||||||||||||
| Less: Insurance cost and expenses (Note 12) | 1,043 | 514 | 2,235 | 1,967 | |||||||||||||||||||
| Less: U.S. tax equity cost and expenses | 4 | 5 | 12 | 15 | |||||||||||||||||||
| Less: interest and other financial charges(a) | 231 | 225 | 675 | 593 | |||||||||||||||||||
| Less: non-operating benefit cost (income) | (178) | (198) | (531) | (596) | |||||||||||||||||||
| Less: restructuring & other(a) | 23 | 22 | 74 | 49 | |||||||||||||||||||
| Less: separation costs(a) | 3 | 53 | 93 | 150 | |||||||||||||||||||
| Add: noncontrolling interests | 8 | (3) | 11 | (16) | |||||||||||||||||||
| Adjusted costs (Non-GAAP) | $ | 10,627 | $ | 9,328 | $ | 30,238 | $ | 24,681 | |||||||||||||||
| Other income (loss) (GAAP) | $ | 432 | $ | 285 | $ | 730 | $ | 885 | |||||||||||||||
| Less: U.S. tax equity | (66) | (48) | (187) | (142) | |||||||||||||||||||
| Less: gains (losses) on retained and sold ownership interests and other equity securities(a) | 117 | 8 | (127) | 18 | |||||||||||||||||||
| Less: gains (losses) on purchases and sales of business interests(a) | — | 3 | 24 | 3 | |||||||||||||||||||
| Less: restructuring & other(a) | 52 | — | 52 | — | |||||||||||||||||||
| Adjusted other income (loss) (Non-GAAP) | $ | 330 | $ | 322 | $ | 968 | $ | 1,007 | |||||||||||||||
| Profit (loss) (GAAP) | $ | 2,805 | $ | 2,515 | $ | 7,804 | $ | 7,149 | |||||||||||||||
| Profit (loss) margin (GAAP) | 19.9% | 20.7% | 19.6% | 21.6% | |||||||||||||||||||
| Operating profit (loss) (Non-GAAP) | $ | 2,988 | $ | 2,299 | $ | 8,262 | $ | 6,783 | |||||||||||||||
| Operating profit (loss) margin (Non-GAAP) | 22.5% | 20.3% | 22.0% | 22.3% | |||||||||||||||||||
| (a) See the Corporate & Other and Other Consolidated Information sections for further information. | |||||||||||||||||||||||
| We believe that adjusting revenue provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of revenue from our run-off insurance operations. We believe that adjusting profit to exclude the effects of items that are not closely associated with ongoing operations provides management and investors with a meaningful measure that increases the period-to-period comparability. Gains (losses) and restructuring and other items are impacted by the timing and magnitude of gains associated with dispositions, and the timing and magnitude of costs associated with restructuring and other activities. We also use Adjusted revenue* growth and Operating profit* as performance metrics at the company level for our annual executive incentive plan for 2026. | |||||||||||||||||||||||
*Non-GAAP Financial Measure
12 2026 3Q FORM 10-Q
| ADJUSTED NET INCOME (LOSS) AND ADJUSTED EFFECTIVE INCOME TAX RATE (NON-GAAP) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||
| (Diluted, per-share amounts in dollars) | Income | EPS | Income | EPS | Income | EPS | Income | EPS | |||||||||||||||||||||||||||||||||
| Net income (loss) from continuing operations (GAAP) (Note 17) | $ | 2,412 | $ | 2.32 | $ | 2,170 | $ | 2.04 | $ | 6,750 | $ | 6.44 | $ | 6,143 | $ | 5.73 | |||||||||||||||||||||||||
| Insurance net income (loss) (pre-tax) | (210) | (0.20) | 363 | 0.34 | 96 | 0.09 | 720 | 0.67 | |||||||||||||||||||||||||||||||||
| Tax effect on Insurance net income (loss)(a) | 8 | 0.01 | (77) | (0.07) | (57) | (0.05) | (85) | (0.08) | |||||||||||||||||||||||||||||||||
| Less: Insurance net income (loss) (net of tax) (Note 12) | (202) | (0.19) | 287 | 0.27 | 39 | 0.04 | 635 | 0.59 | |||||||||||||||||||||||||||||||||
| U.S. tax equity net income (loss) (pre-tax) | (78) | (0.07) | (60) | (0.06) | (221) | (0.21) | (181) | (0.17) | |||||||||||||||||||||||||||||||||
| Tax effect on U.S. tax equity net income (loss) | 88 | 0.08 | 71 | 0.07 | 249 | 0.24 | 212 | 0.20 | |||||||||||||||||||||||||||||||||
| Less: U.S. tax equity net income (loss) (net of tax) | 10 | 0.01 | 11 | 0.01 | 28 | 0.03 | 31 | 0.03 | |||||||||||||||||||||||||||||||||
| Non-operating benefit (cost) income (pre-tax) (GAAP) | 178 | 0.17 | 198 | 0.19 | 531 | 0.51 | 596 | 0.56 | |||||||||||||||||||||||||||||||||
| Tax effect on non-operating benefit (cost) income | (37) | (0.04) | (42) | (0.04) | (112) | (0.11) | (125) | (0.12) | |||||||||||||||||||||||||||||||||
| Less: Non-operating benefit (cost) income (net of tax) | 140 | 0.13 | 157 | 0.15 | 420 | 0.40 | 471 | 0.44 | |||||||||||||||||||||||||||||||||
| Gains (losses) on purchases and sales of business interests (pre-tax)(b) | — | — | 3 | — | 24 | 0.02 | 3 | — | |||||||||||||||||||||||||||||||||
| Tax effect on gains (losses) on purchases and sales of business interests | — | — | (1) | — | — | — | 2 | — | |||||||||||||||||||||||||||||||||
| Less: Gains (losses) on purchases and sales of business interests (net of tax) | — | — | 2 | — | 24 | 0.02 | 5 | — | |||||||||||||||||||||||||||||||||
| Gains (losses) on retained and sold ownership interests and other equity securities (pre-tax)(b) | 117 | 0.11 | 8 | 0.01 | (127) | (0.12) | 18 | 0.02 | |||||||||||||||||||||||||||||||||
| Tax effect on gains (losses) on retained and sold ownership interests and other equity securities(a)(c) | (25) | (0.02) | (1) | — | 27 | 0.03 | — | — | |||||||||||||||||||||||||||||||||
| Less: Gains (losses) on retained and sold ownership interests and other equity securities (net of tax) | 92 | 0.09 | 8 | 0.01 | (100) | (0.10) | 18 | 0.02 | |||||||||||||||||||||||||||||||||
| Restructuring & other (pre-tax)(b) | 28 | 0.03 | (22) | (0.02) | (22) | (0.02) | (49) | (0.05) | |||||||||||||||||||||||||||||||||
| Tax effect on restructuring & other | 3 | — | 5 | — | 14 | 0.01 | 10 | 0.01 | |||||||||||||||||||||||||||||||||
| Less: Restructuring & other (net of tax) | 31 | 0.03 | (17) | (0.02) | (9) | (0.01) | (39) | (0.04) | |||||||||||||||||||||||||||||||||
| Separation costs (pre-tax)(b) | (4) | — | (53) | (0.05) | (95) | (0.09) | (150) | (0.14) | |||||||||||||||||||||||||||||||||
| Tax effect on separation costs | 1 | — | 11 | 0.01 | 20 | 0.02 | 31 | 0.03 | |||||||||||||||||||||||||||||||||
| Less: Separation costs (net of tax) | (3) | — | (42) | (0.04) | (75) | (0.07) | (119) | (0.11) | |||||||||||||||||||||||||||||||||
| Adjusted net income (loss) (Non-GAAP) | $ | 2,343 | $ | 2.25 | $ | 1,764 | $ | 1.66 | $ | 6,423 | $ | 6.13 | $ | 5,141 | $ | 4.80 | |||||||||||||||||||||||||
| Income from continuing operations before taxes (GAAP) | $ | 2,805 | $ | 2,515 | $ | 7,804 | $ | 7,149 | |||||||||||||||||||||||||||||||||
| Less: Total adjustments above (pre-tax) | 31 | 438 | 186 | 957 | |||||||||||||||||||||||||||||||||||||
| Adjusted income before taxes (Non-GAAP) | $ | 2,774 | $ | 2,077 | $ | 7,619 | $ | 6,192 | |||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes (GAAP) | $ | 385 | $ | 344 | $ | 1,044 | $ | 1,015 | |||||||||||||||||||||||||||||||||
| Less: Tax effect on adjustments above | (38) | 33 | (142) | (45) | |||||||||||||||||||||||||||||||||||||
| Adjusted provision (benefit) for income taxes (Non-GAAP) | $ | 423 | $ | 311 | $ | 1,185 | $ | 1,061 | |||||||||||||||||||||||||||||||||
| Effective income tax rate (GAAP) | 13.7% | 13.7% | 13.4% | 14.2% | |||||||||||||||||||||||||||||||||||||
| Adjusted effective income tax rate (Non-GAAP) | 15.2% | 15.0% | 15.6% | 17.1% | |||||||||||||||||||||||||||||||||||||
| (a) Includes related tax valuation allowances. Tax effect on Insurance net income includes valuation allowances for 2025. | |||||||||||||||||||||||||||||||||||||||||
| (b) See the Corporate & Other and Other Consolidated Information sections for further information. | |||||||||||||||||||||||||||||||||||||||||
| (c) Includes tax benefits available to offset the tax on gains (losses) on equity securities. | |||||||||||||||||||||||||||||||||||||||||
| Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total. | |||||||||||||||||||||||||||||||||||||||||
| We believe that Adjusted net income* and the Adjusted effective income tax rate* provide management and investors with useful measures to evaluate the performance of the total company and increased period-to-period comparability, as well as a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding items that are not closely related with ongoing operations. We also use Adjusted EPS* as a performance metric at the company level for our performance stock units granted in 2026. | |||||||||||||||||||||||||||||||||||||||||
*Non-GAAP Financial Measure
2026 3Q FORM 10-Q 13
| FREE CASH FLOW (FCF) (NON-GAAP) | Nine months ended September 30 | ||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities (CFOA) (GAAP) | $ | 7,329 | $ | 6,447 | |||||||
| Add: gross additions to property, plant and equipment and internal-use software | (1,002) | (842) | |||||||||
| Add: dispositions of property, plant and equipment | 179 | 76 | |||||||||
| Less: separation cash expenditures | (143) | (202) | |||||||||
| Less: Corporate & Other restructuring cash expenditures | (79) | (51) | |||||||||
| Free cash flow (FCF) (Non-GAAP) | $ | 6,728 | $ | 5,933 | |||||||
| We believe investors may find it useful to compare free cash flow* performance without the effects of separation cash expenditures and Corporate & Other restructuring cash expenditures (associated with the separation-related program announced in the fourth quarter of 2022 and acquisition-related costs). In addition, we include dispositions of property, plant and equipment, including sale leaseback activity. We believe this measure will better allow management and investors to evaluate the capacity of our operations to generate free cash flow*. We also use FCF* as a performance metric at the company level for our annual executive incentive plan and performance stock units granted in 2026. | |||||||||||
CONTROLS AND PROCEDURES. Under the direction of our Chief Executive Officer and Chief Financial Officer, we evaluated our disclosure controls and procedures and internal control over financial reporting and concluded that (i) our disclosure controls and procedures were effective as of September 30, 2026, and (ii) no change in internal control over financial reporting occurred during the quarter ended September 30, 2026, that has materially affected, or is reasonably likely to materially affect, such internal control over financial reporting.
OTHER FINANCIAL DATA
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS. In December 2025, the Board of Directors authorized up to $20 billion of common share repurchases through open market purchases or privately negotiated transactions, via various strategies, including accelerated share repurchases. We repurchased 5,008 thousand shares for $1,983 million during the three months ended September 30, 2026 under this authorization.
| Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of our share repurchase authorizations | Approximate dollar value of shares that may yet be purchased under our $20 billion share repurchase authorization | ||||||||||
| (Shares in thousands) | ||||||||||||||
| 2026 | ||||||||||||||
| July | 583 | $ | 351.06 | 583 | ||||||||||
| August(a) | 3,277 | 428.66 | 3,277 | |||||||||||
| September | 1,148 | 325.45 | 1,148 | |||||||||||
| Total(a) | 5,008 | $ | 395.97 | 5,008 | $ | 16,004 | ||||||||
(a) The average price paid per share includes cash paid for the final settlement on shares purchased under the prior quarter accelerated share repurchase. The average share prices excluding this settlement are $374.45 and $360.49 for August and the third quarter, respectively. These adjusted share prices also exclude any future settlements on the current accelerated share repurchase.
*Non-GAAP Financial Measure
14 2026 3Q FORM 10-Q
| STATEMENT OF OPERATIONS (UNAUDITED) | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||
| (In millions; per-share amounts in dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||
| Sales of equipment | $ | $ | $ | $ | ||||||||||||||||
| Sales of services | ||||||||||||||||||||
| Insurance revenue (Note 12) | ||||||||||||||||||||
| Total revenue | ||||||||||||||||||||
| Cost of equipment sold | ||||||||||||||||||||
| Cost of services sold | ||||||||||||||||||||
| Selling, general and administrative expenses | ||||||||||||||||||||
| Separation costs | ||||||||||||||||||||
| Research and development | ||||||||||||||||||||
| Interest and other financial charges | ||||||||||||||||||||
| Insurance losses, annuity benefits and other costs (Note 12) | ||||||||||||||||||||
| Non-operating benefit cost (income) | ( | ( | ( | ( | ||||||||||||||||
| Total costs and expenses | ||||||||||||||||||||
| Other income (loss) (Note 18) | ||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | ||||||||||||||||||||
| Benefit (provision) for income taxes (Note 15) | ( | ( | ( | ( | ||||||||||||||||
| Net income (loss) from continuing operations | ||||||||||||||||||||
| Income (loss) from discontinued operations, net of taxes (Note 2) | ( | ( | ( | |||||||||||||||||
| Net income (loss) | ||||||||||||||||||||
| Less net income (loss) attributable to noncontrolling interests | ( | ( | ||||||||||||||||||
| Net income (loss) attributable to the Company | ||||||||||||||||||||
| Net income (loss) attributable to common shareholders | $ | $ | $ | $ | ||||||||||||||||
| Earnings (loss) per share from continuing operations (Note 17) | ||||||||||||||||||||
| Diluted earnings (loss) per share | $ | $ | $ | $ | ||||||||||||||||
| Basic earnings (loss) per share | $ | $ | $ | $ | ||||||||||||||||
| Net earnings (loss) per share (Note 17) | ||||||||||||||||||||
| Diluted earnings (loss) per share | $ | $ | $ | $ | ||||||||||||||||
| Basic earnings (loss) per share | $ | $ | $ | $ | ||||||||||||||||
2026 3Q FORM 10-Q 15
| STATEMENT OF FINANCIAL POSITION (UNAUDITED) | ||||||||
| (In millions, except share amounts) | September 30, 2026 | December 31, 2025 | ||||||
| Cash, cash equivalents and restricted cash | $ | $ | ||||||
| Current receivables (Note 4) | ||||||||
| Inventories, including deferred inventory costs (Note 5) | ||||||||
| Current contract assets (Note 8) | ||||||||
| All other current assets (Note 9) | ||||||||
| Current assets | ||||||||
| Investment securities (Note 3) | ||||||||
| Property, plant and equipment – net (Note 6) | ||||||||
| Goodwill (Note 7) | ||||||||
| Other intangible assets – net (Note 7) | ||||||||
| Contract and other deferred assets (Note 8) | ||||||||
| All other assets (Note 9) | ||||||||
| Deferred income taxes (Note 15) | ||||||||
Assets of discontinued operations (Note 2) | ||||||||
Total assets | $ | $ | ||||||
| Short-term borrowings (Note 10) | $ | $ | ||||||
| Accounts payable (Note 11) | ||||||||
| Progress collections (Note 8) | ||||||||
| Contract liabilities and deferred income (Note 8) | ||||||||
| Sales discounts and allowances (Note 14) | ||||||||
| All other current liabilities (Note 14) | ||||||||
| Current liabilities | ||||||||
| Deferred income (Note 8) | ||||||||
| Long-term borrowings (Note 10) | ||||||||
| Insurance liabilities and annuity benefits (Note 12) | ||||||||
| Non-current compensation and benefits | ||||||||
| All other liabilities (Note 14) | ||||||||
Liabilities of discontinued operations (Note 2) | ||||||||
Total liabilities | ||||||||
Common stock ( at September 30, 2026 and December 31, 2025, respectively) (Note 16) | ||||||||
| Accumulated other comprehensive income (loss) – net attributable to the Company (Note 16) | ( | ( | ||||||
Other capital | ||||||||
Retained earnings | ||||||||
Less common stock held in treasury | ( | ( | ||||||
| Total shareholders’ equity | ||||||||
| Noncontrolling interests | ||||||||
| Total equity | ||||||||
Total liabilities and equity | $ | $ | ||||||
16 2026 3Q FORM 10-Q
| STATEMENT OF CASH FLOWS (UNAUDITED) | Nine months ended September 30 | ||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Net income (loss) | $ | $ | |||||||||
| Net (income) loss from discontinued operations activities | ( | ||||||||||
| Adjustments to reconcile net income (loss) to cash from (used for) operating activities: | |||||||||||
| Depreciation and amortization of property, plant and equipment (Note 6) | |||||||||||
| Amortization of intangible assets (Note 7) | |||||||||||
| (Gains) losses on equity securities (Note 18) | ( | ||||||||||
| Principal pension plans (benefit) cost (Note 13) | ( | ( | |||||||||
| Principal pension plans employer contributions | ( | ( | |||||||||
| Other postretirement benefit plans (net) | ( | ( | |||||||||
| Provision (benefit) for income taxes | |||||||||||
| Cash recovered (paid) during the year for income taxes | ( | ( | |||||||||
| Changes in operating working capital: | |||||||||||
| Decrease (increase) in current receivables | ( | ( | |||||||||
| Decrease (increase) in inventories, including deferred inventory costs | ( | ( | |||||||||
| Decrease (increase) in current contract assets | ( | ( | |||||||||
| Increase (decrease) in contract liabilities and current deferred income | |||||||||||
| Increase (decrease) in progress collections | |||||||||||
Increase (decrease) in accounts payable | |||||||||||
| Increase (decrease) in sales discounts and allowances (Note 14) | |||||||||||
| All other operating activities | ( | ||||||||||
| Cash from (used for) operating activities – continuing operations | |||||||||||
| Cash from (used for) operating activities – discontinued operations | ( | ( | |||||||||
| Cash from (used for) operating activities | |||||||||||
Additions to property, plant and equipment and internal-use software | ( | ( | |||||||||
| Dispositions of property, plant and equipment | |||||||||||
| Net cash from (payments for) principal businesses purchased | ( | ( | |||||||||
| Net (purchases) dispositions of insurance investment securities | ( | ||||||||||
| All other investing activities | ( | ( | |||||||||
| Cash from (used for) investing activities – continuing operations | ( | ( | |||||||||
| Cash from (used for) investing activities – discontinued operations | ( | ( | |||||||||
| Cash from (used for) investing activities | ( | ( | |||||||||
| Net increase (decrease) in borrowings (maturities of 90 days or less) | |||||||||||
| Newly issued debt (maturities longer than 90 days) | |||||||||||
| Repayments and other debt reductions (maturities longer than 90 days) | ( | ( | |||||||||
| Dividends paid to shareholders | ( | ( | |||||||||
| Purchases of common stock for treasury | ( | ( | |||||||||
| All other financing activities | |||||||||||
| Cash from (used for) financing activities – continuing operations | ( | ( | |||||||||
| Cash from (used for) financing activities – discontinued operations | |||||||||||
| Cash from (used for) financing activities | ( | ( | |||||||||
| Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | ( | ||||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | ( | ( | |||||||||
| Cash, cash equivalents and restricted cash at beginning of year | |||||||||||
Cash, cash equivalents and restricted cash at September 30 | |||||||||||
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | ( | ( | |||||||||
Cash, cash equivalents and restricted cash of continuing operations at September 30 | $ | $ | |||||||||
2026 3Q FORM 10-Q 17
| STATEMENT OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||
(In millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||
| Net income (loss) | $ | $ | $ | $ | ||||||||||||||||
| Less: net income (loss) attributable to noncontrolling interests | ( | ( | ||||||||||||||||||
| Net income (loss) attributable to the Company | $ | $ | $ | $ | ||||||||||||||||
Currency translation adjustments | ( | ( | ||||||||||||||||||
Benefit plans | ( | ( | ( | ( | ||||||||||||||||
Investment securities and cash flow hedges | ( | ( | ||||||||||||||||||
| Long-duration insurance contracts | ( | ( | ||||||||||||||||||
| Other comprehensive income (loss) attributable to the Company | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||
| Comprehensive income (loss) | $ | $ | $ | $ | ||||||||||||||||
| Less: comprehensive income (loss) attributable to noncontrolling interests | ( | ( | ||||||||||||||||||
| Comprehensive income (loss) attributable to the Company | $ | $ | $ | $ | ||||||||||||||||
| STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||
(In millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||
| Common stock issued | $ | $ | $ | $ | ||||||||||||||||
| Beginning balance | ( | ( | ( | ( | ||||||||||||||||
| Currency translation adjustments | ( | ( | ||||||||||||||||||
| Benefit plans | ( | ( | ( | ( | ||||||||||||||||
Investment securities and cash flow hedges | ( | ( | ||||||||||||||||||
| Long-duration insurance contracts | ( | ( | ||||||||||||||||||
| Accumulated other comprehensive income (loss) | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||
| Beginning balance | ||||||||||||||||||||
| Gains (losses) on treasury stock dispositions | ( | ( | ( | ( | ||||||||||||||||
| Stock-based compensation | ||||||||||||||||||||
| Other changes | ||||||||||||||||||||
| Other capital | $ | $ | $ | $ | ||||||||||||||||
| Beginning balance | ||||||||||||||||||||
| Net income (loss) attributable to the Company | ||||||||||||||||||||
| Dividends and other transactions with shareholders | ( | ( | ( | ( | ||||||||||||||||
| Retained earnings | $ | $ | $ | $ | ||||||||||||||||
| Beginning balance | ( | ( | ( | ( | ||||||||||||||||
| Purchases | ( | ( | ( | ( | ||||||||||||||||
| Dispositions | ||||||||||||||||||||
| Common stock held in treasury | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||
| GE Aerospace shareholders' equity balance | ||||||||||||||||||||
| Noncontrolling interests balance | ||||||||||||||||||||
Total equity balance at September 30 | $ | $ | $ | $ | ||||||||||||||||
18 2026 3Q FORM 10-Q
NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. Our consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP), which requires us to make estimates based on assumptions about current, and for some estimates, future, economic and market conditions which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations, financial position and cash flows. Such changes could result in future impairments of goodwill, intangibles, long-lived assets, contract assets and investment securities, revisions to estimated profitability on long-term product service and other service agreements, incremental credit losses on receivables and debt securities, incremental losses related to our contingencies, a change in the carrying amount of our tax assets and liabilities, or a change in our insurance liabilities and pension obligations as of the time of a relevant measurement event.
In preparing our Statement of Cash Flows, we make certain adjustments to reflect cash flows that cannot otherwise be calculated by changes in our Statement of Financial Position. These adjustments may include, but are not limited to, the effects of currency exchange, acquisitions and dispositions of businesses, the timing of settlements to suppliers for property, plant and equipment, non-cash gains/losses and other balance sheet reclassifications.
NOTE 2. DISCONTINUED OPERATIONS. Our former GE Vernova business, our mortgage portfolio in Poland (Bank BPH) and other trailing assets and liabilities associated with prior dispositions are included in discontinued operations. Results of operations, financial position and cash flows for these businesses are reported as discontinued operations for all periods presented and the notes to the financial statements have been adjusted on a retrospective basis.
GE Vernova. On April 2, 2024, we completed the previously announced separation of GE Vernova. The separation was structured as a tax-free spin-off and was achieved through the Company's pro-rata distribution of all the outstanding shares of GE Vernova to holders of the Company's common stock. In connection with the GE Vernova separation, the historical results of GE Vernova and certain assets and liabilities included in the separation are reported in GE Aerospace consolidated financial statements as discontinued operations.
We have continuing involvement with GE Vernova primarily through ongoing sales of products, a transition services agreement, through which GE Aerospace and GE Vernova provided certain services to each other following the separation until September 30, 2026 when this agreement was completed, a separation and distribution agreement, including performance and financial guarantees, a tax matters agreement and a trademark licensing agreement. For the nine months ended September 30, 2026, we had direct and indirect sales of $407 million to GE Vernova, primarily related to engine sales and parts. We collected net cash of $472 million related to the sales of engines and parts and the transition services agreement for the nine months ended September 30, 2026.
Bank BPH. As previously reported, Bank BPH, along with other Polish banks, has been subject to ongoing litigation in Poland related to its portfolio of floating rate residential mortgage loans, with cases brought by individual borrowers seeking relief related to their foreign currency indexed or denominated mortgage loans in various courts throughout Poland. The estimate of total losses for borrower litigation at Bank BPH was $1,658 million and $2,334 million as of September 30, 2026 and December 31, 2025, respectively, with the decrease primarily driven by utilization. No incremental contributions from GE Aerospace were required during the nine months ended September 30, 2026. For further information about factors that are relevant to the estimate of total losses for borrower litigation at Bank BPH, see Note 22. Future changes or adverse developments could increase our estimate of total losses and potentially require future cash contributions to Bank BPH.
The Bank BPH financing receivable portfolio is recorded at the lower of cost or fair value, less cost to sell, which reflects market yields and estimates with respect to ongoing borrower litigation. At September 30, 2026, the total portfolio had no carrying value, net of a valuation allowance. Income (loss) related to ongoing borrower litigation was $(108
2026 3Q FORM 10-Q 19
| RESULTS OF DISCONTINUED OPERATIONS | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Total revenue | $ | $ | $ | $ | ||||||||||||||||||||||
| Cost of equipment and services sold | ||||||||||||||||||||||||||
| Other income, costs and expenses | ( | ( | ( | |||||||||||||||||||||||
| Net income (loss) of discontinued operations before income taxes | ( | ( | ( | |||||||||||||||||||||||
| Benefit (provision) for income taxes | ( | ( | ( | |||||||||||||||||||||||
| Net income (loss) of discontinued operations, net of taxes | ( | ( | ( | |||||||||||||||||||||||
| Gain (loss) on disposal before income taxes | ||||||||||||||||||||||||||
| Benefit (provision) for income taxes | ||||||||||||||||||||||||||
| Gain (loss) on disposal, net of taxes | ||||||||||||||||||||||||||
| Net income (loss) from discontinued operations, net of taxes | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||
| ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS | September 30, 2026 | December 31, 2025 | ||||||
Cash, cash equivalents and restricted cash(a) | $ | $ | ||||||
| Current receivables | ||||||||
| Property, plant and equipment - net | ||||||||
All other assets(a) | ||||||||
| Deferred income taxes | ||||||||
| Assets of discontinued operations(b) | $ | $ | ||||||
| Accounts payable | $ | $ | ||||||
| Non-current compensation and benefits | ||||||||
| All other liabilities | ||||||||
Liabilities of discontinued operations(b) | $ | $ | ||||||
(a) Included $732 million and $1,123 million of cash, cash equivalents and restricted cash, and $344 million and $385 million of investment securities consisting of Non-U.S. corporate debt in All other assets, both related to Bank BPH as of September 30, 2026 and December 31, 2025, respectively. The decrease in cash, cash equivalents and restricted cash was primarily driven by utilization.
(b) Included $976 million and $1,389 million of valuation allowances against financing receivables held for sale, related to estimated borrower litigation losses, and $682 million and $945 million in All other liabilities related to estimated borrower litigation losses for Bank BPH’s foreign currency-denominated mortgage portfolio as of September 30, 2026 and December 31, 2025, respectively. Accordingly, total estimated losses related to borrower litigation were $1,658 million and $2,334 million as of September 30, 2026 and December 31, 2025, respectively, with the decrease primarily driven by utilization. The valuation allowance completely offsets the financing receivables balance as of September 30, 2026 and December 31, 2025.
NOTE 3. INVESTMENT SECURITIES. Substantially all of our non-current investment securities are held within our run-off insurance operations and support the long-duration insurance liabilities. The portfolio includes debt securities, which substantially all are investment grade, and are classified as available-for-sale.
| September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||
| Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||||||||
| Debt | |||||||||||||||||||||||||||||
| U.S. corporate | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||
| Non-U.S. corporate | ( | ( | |||||||||||||||||||||||||||
| State and municipal | ( | ( | |||||||||||||||||||||||||||
| Mortgage and asset-backed | ( | ( | |||||||||||||||||||||||||||
| Government and agencies | ( | ( | |||||||||||||||||||||||||||
| Equity | — | — | — | — | |||||||||||||||||||||||||
| Non-current investment securities | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||
The amortized cost of debt securities excludes accrued interest of $508 million and $473 million at September 30, 2026 and December 31, 2025, respectively
The estimated fair value of non-current investment securities at September 30, 2026 decreased since December 31, 2025, primarily due to higher market yields and the mark-to-market effect on our equity interests partially offset by net purchases of debt/equity securities.
20 2026 3Q FORM 10-Q
Total estimated fair value of debt securities in an unrealized loss position were $27,289 million and $18,484 million, of which $12,568 million and $14,656 million had gross unrealized losses of $(3,686 ) million and $(2,525 ) million and have been in a loss position for 12 months or more at September 30, 2026 and December 31, 2025, respectively. The majority of our U.S. and non-U.S. corporate securities gross unrealized losses were in the consumer, electric, technology, communication and energy industries. The majority of our commercial mortgage-backed securities and asset-backed securities in an unrealized loss position have received investment-grade credit ratings from the major rating agencies. For our securities in an unrealized loss position, the losses are not indicative of credit losses, we currently do not intend to sell the investments, and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis.
| Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Net unrealized gains (losses) for equity securities with readily determinable fair value (RDFV) | $ | $ | $ | ( | $ | |||||||||||||||
| Proceeds from debt/equity securities sales and redemptions | ||||||||||||||||||||
| Gross realized gains on debt securities | ||||||||||||||||||||
| Gross realized losses and impairments on debt securities | ( | ( | ( | ( | ||||||||||||||||
Contractual maturities of our debt securities (excluding mortgage and asset-backed securities) at September 30, 2026 are as follows:
| Amortized cost | Estimated fair value | |||||||
| Within one year | $ | $ | ||||||
| After one year through five years | ||||||||
| After five years through ten years | ||||||||
| After ten years | ||||||||
We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations.
The majority of our non-current investment securities are classified within Level 2, as their valuation is determined based on significant observable inputs. Investments with a fair value of $3,531 million and $3,222 million are classified within Level 3, as significant inputs to their valuation models are unobservable at September 30, 2026 and December 31, 2025, respectively. During the nine months ended September 30, 2026, $143 million was transferred out of Level 3 and there were no significant transfers into Level 3. During the nine months ended September 30, 2025, $1,246 million was transferred out of Level 3 related to increases in the observability of external information used in determining fair value in our run-off insurance operations and primarily included certain investments in private placement U.S. and non-U.S. corporate debt securities, and there were no significant transfers into Level 3.
In addition to the equity securities described above, we held $2,113 million and $1,911 million of equity securities without RDFV substantially all within our run-off insurance operations at September 30, 2026 and December 31, 2025, respectively, that are classified within All other assets in our Statement of Financial Position. Fair value adjustments, net of impairments, recorded in income were $51 million and $57 million and $122 million and $157 million for the three and nine months ended September 30, 2026 and 2025, respectively. These are primarily limited partnership investments in private equity, infrastructure and real estate funds that are measured at net asset value per share (or equivalent) as a practical expedient to estimated fair value and are excluded from the fair value hierarchy. These limited partnership investments are generally not eligible for redemption and generally cannot be sold without approval of the general partner. Distributions from each fund will be received as the underlying investments of the funds are liquidated at the discretion of the general partner. These investments are generally considered illiquid and our ability to receive the most recent net asset value in a sale would be determined by external market factors.
NOTE 4. CURRENT AND LONG-TERM RECEIVABLES
| CURRENT RECEIVABLES | September 30, 2026 | December 31, 2025 | ||||||
| Customer receivables | $ | $ | ||||||
| Revenue sharing and other partner receivables(a) | ||||||||
| Supplier advances | ||||||||
| Non-income based tax receivables | ||||||||
| Other sundry receivables | ||||||||
| Allowance for credit losses | ( | ( | ||||||
| Total current receivables | $ | $ | ||||||
(a) Revenue sharing and other partner receivables are primarily amounts due from revenue sharing partners who participate in engine programs by developing and supplying certain engine components through the life of the program or other partners who support our production or aftermarket activities. The revenue sharing partners share in program revenue, receive a share of customer progress payments and share costs related to discounts and warranties.
2026 3Q FORM 10-Q 21
Sales of customer receivables. From time to time, the Company sells current or long-term receivables to third parties in response to customer-sponsored requests or programs to facilitate sales or for risk mitigation purposes. The Company sold current customer receivables to third parties and subsequently collected $77 million and $115 million during the nine months ended September 30, 2026 and 2025, respectively, related primarily to our participation in customer-sponsored supply chain finance programs. Within these programs, primarily in the Commercial Engines & Services (CES) segment, the Company has no continuing involvement; fees associated with the transferred receivables are covered by the customer and cash is received at the original invoice value and due date.
| LONG-TERM RECEIVABLES | September 30, 2026 | December 31, 2025 | |||||||||||||||
| Long-term customer receivables(a) | $ | $ | |||||||||||||||
| Supplier advances | |||||||||||||||||
| Sundry receivables | |||||||||||||||||
| Allowance for credit losses(a) | ( | ( | |||||||||||||||
| Total long-term receivables | $ | $ | |||||||||||||||
(a) The decrease was primarily driven by the write-off of allowance against uncollectible accounts.
NOTE 5. INVENTORIES, INCLUDING DEFERRED INVENTORY COSTS
| September 30, 2026 | December 31, 2025 | |||||||
Raw materials and work in process | $ | $ | ||||||
| Finished goods | ||||||||
| Deferred inventory costs(a) | ||||||||
| Inventories, including deferred inventory costs | $ | $ | ||||||
NOTE 6. PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES
| September 30, 2026 | December 31, 2025 | |||||||
| Original cost | $ | $ | ||||||
| Less accumulated depreciation and amortization | ( | ( | ||||||
| Property, plant and equipment – net | $ | $ | ||||||
| DEPRECIATION AND AMORTIZATION EXPENSE | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||
| Commercial Engines & Services | $ | $ | $ | $ | |||||||||||||||||||||||||
| Defense & Propulsion Technologies | |||||||||||||||||||||||||||||
| Corporate & Other | |||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||||||||
Operating Lease Liabilities. Our current operating lease liabilities, included in in our Statement of Financial Position, were $296 million and $280 million as of September 30, 2026 and December 31, 2025, respectively. Our non-current operating lease liabilities, included in in our Statement of Financial Position, were $825 million and $783 million as of September 30, 2026 and December 31, 2025, respectively. Expense on our operating lease portfolio, primarily from our long-term fixed leases, was $100 million and $97 million for the three months ended September 30, 2026 and 2025, respectively, and $262 million and $294 million for the nine months ended September 30, 2026 and 2025, respectively.
In the second quarter of 2026, as part of overall fleet management for one of our smaller engine programs with a diverse customer base, we entered into an agreement for the sale and leaseback of certain Company owned engines. We recognized sales proceeds of $125 million and $167 million and net income attributable to the Company of $50 million and $65 million for the three and nine months ended September 30, 2026. The Company is leasing back the engines for a term of 12 years under an operating lease agreement.
NOTE 7. ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS. During the third quarter of 2026, GE Aerospace signed an agreement to acquire Consolidated Precision Products (CPP), a leading manufacturer of highly engineered castings and sub-assemblies primarily for the commercial aerospace and defense markets, with a purchase price of $11.75 billion. We plan to fund the acquisition with approximately $7 billion in cash and the remainder in new debt. This transaction is expected to close in the second half of 2027 and will be subject to regulatory approvals and other customary closing conditions.
22 2026 3Q FORM 10-Q
| Commercial Engines & Services | Defense & Propulsion Technologies | Total | |||||||||
| Balance at January 1, 2026 | $ | $ | $ | ||||||||
| Goodwill acquisition | |||||||||||
| Goodwill adjustments(a) | ( | ( | ( | ||||||||
Balance at September 30, 2026 | $ | $ | $ | ||||||||
(a) Goodwill adjustments are primarily related to foreign currency exchange.
We assess the possibility that a reporting unit’s fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates. In the third quarter of 2026, we did not identify any reporting units that required an interim impairment test.
Other intangible assets decreased $196 million during the nine months ended September 30, 2026, primarily as a result of amortization and foreign currency exchange, partially offset by additions. Consolidated amortization expense was $109 million and $88 million in the three months ended September 30, 2026 and 2025, respectively, and $282 million and $270 million in the nine months ended September 30, 2026 and 2025, respectively.
NOTE 8. CONTRACT AND OTHER DEFERRED ASSETS, CONTRACT LIABILITIES AND DEFERRED INCOME & PROGRESS COLLECTIONS
Contract assets (liabilities) and other deferred assets (income), on a net basis, decreased the net liability position by $164 million for the nine months ended September 30, 2026, primarily due to a decrease in noncurrent deferred income of $89 million and an increase in customer advances and other in noncurrent assets of $78 million. In aggregate, the net liability for long-term service agreements decreased, primarily due to revenue recognized of $8,437 million, partially offset by billings of $8,291 million and net unfavorable changes in estimated profitability of $60 million driven by quarterly updates to contract margins, including a reversal of $139 million of tariff-related charges taken in the nine months ended September 30, 2025, primarily in CES. Revenue recognized for contracts included in a liability position at the beginning of the year were $7,229 million and $5,884 million for the nine months ended September 30, 2026 and 2025, respectively.
| CONTRACT ASSETS, LIABILITIES AND OTHER DEFERRED ASSETS AND INCOME | September 30, 2026 | December 31, 2025 | |||||||||
| Long-term service agreements | $ | $ | |||||||||
| Equipment and other service agreements | |||||||||||
| Current contract assets | $ | $ | |||||||||
| Nonrecurring engineering costs(a) | $ | $ | |||||||||
| Customer advances and other(b) | |||||||||||
| Contract and other deferred assets | |||||||||||
| Total contract and other deferred assets | $ | $ | |||||||||
| Long-term service agreement liabilities | $ | $ | |||||||||
| Current deferred income | |||||||||||
| Contract liabilities and current deferred income | $ | $ | |||||||||
| Non-current deferred income | |||||||||||
| Total contract liabilities and deferred income | $ | $ | |||||||||
| Contract assets (liabilities) and other deferred assets (income) | $ | ( | $ | ( | |||||||
(a) Includes contract fulfillment costs for engineering and development incurred prior to production for equipment production contracts, primarily within our Defense & Propulsion Technologies (DPT) segment, which are amortized ratably over each unit produced. We assess the recoverability of these costs and if we determine the costs are no longer probable of recovery, the asset is impaired. The most significant program relates to DPT contracts for the Boeing 777X aircraft, which will be amortized once entered into service.
(b) Includes amounts due from customers within our CES segment for the sales of engines, spare parts and services, which we collect through fixed or usage-based billings from the sale of spare parts and servicing of equipment under long-term service agreements.
Progress collections increased $540 million in the nine months ended September 30, 2026, primarily due to collections received in excess of liquidations at CES.
NOTE 9. ALL OTHER ASSETS. All other current assets and All other assets primarily include equity method investments, Insurance cash and cash equivalents, receivables and other investments in our run-off insurance operations, time deposits with maturities greater than three months, pension surplus, prepaid taxes and other deferred charges and indemnity assets. All other current assets increased $1,421 million during the nine months ended September 30, 2026, driven by the conversion of cash and cash equivalents to higher yielding time deposits with maturities greater than three months of $1,500 million. All other non-current assets decreased $14 million in the nine months ended September 30, 2026, primarily driven by a decrease in insurance cash and cash equivalents of $481 million, offset by an increase in equity method and other investments of $474 million. Insurance cash and cash equivalents were $784 million and $1,264 million as of September 30, 2026 and December 31, 2025, respectively.
2026 3Q FORM 10-Q 23
NOTE 10. BORROWINGS
| September 30, 2026 | December 31, 2025 | ||||||||||||||||
| Current portion of long-term borrowings | |||||||||||||||||
| Senior notes | $ | $ | |||||||||||||||
| Subordinated notes and other | |||||||||||||||||
| Commercial paper(a) | |||||||||||||||||
| Total short-term borrowings | $ | $ | |||||||||||||||
| Senior notes(b) | |||||||||||||||||
| Subordinated notes | |||||||||||||||||
| Other | |||||||||||||||||
| Total long-term borrowings | $ | $ | |||||||||||||||
| Total borrowings | $ | $ | |||||||||||||||
(a) Represents the outstanding balance under the Company's commercial paper program, which began in the third quarter of 2026.
(b) In 2025, GE Aerospace issued a total of $2,000 million in aggregate principal amount of senior unsecured debt, comprised of $1,000 million of 4.3 % senior notes due 2030, and $1,000 million of 4.9 % senior notes due 2036.
See Note 20 for further information about borrowings and associated hedges.
NOTE 11. ACCOUNTS PAYABLE
| September 30, 2026 | December 31, 2025 | |||||||
| Trade payables | $ | $ | ||||||
| Revenue sharing and other partner payables(a) | ||||||||
Sundry payables | ||||||||
Accounts payable | $ | $ | ||||||
(a) Revenue sharing and other partner payables are primarily amounts due to revenue sharing and joint venture partners who participate in engine programs by developing and supplying certain engine components through the life of the program or other partners who support our production or aftermarket activities. The revenue sharing partners share in program revenue, receive a share of customer progress payments and share costs related to discounts and warranties.
We facilitate voluntary supply chain finance programs with third parties, which provide participating suppliers the opportunity to sell their GE Aerospace receivables to third parties at the sole discretion of both the suppliers and the third parties. Total supplier invoices paid through these third-party programs were $3,117 million and $2,527 million for the nine months ended September 30, 2026 and 2025, respectively. GE Aerospace has no costs associated with this program.
NOTE 12. INSURANCE LIABILITIES AND ANNUITY BENEFITS. Insurance liabilities and annuity benefits are comprised of obligations to annuitants and insureds in our run-off insurance operations. Our insurance operations (net of eliminations) generated revenue of $833 million and $875 million, profit/(loss) was $(210 ) million and $361 million and net income/(loss) was $(202 ) million and $287 million for the three months ended September 30, 2026 and 2025, respectively. For the nine months ended September 30, 2026 and 2025, revenues were $2,326 million and $2,681 million, profit was $91 million and $714 million and net income was $39 million and $567 million, respectively. These operations were primarily supported by investment securities, substantially all debt securities, of $35,241 million and $37,842 million, limited partnerships of $5,441 million and $5,089 million, a diversified commercial mortgage loan portfolio collateralized by first liens on U.S. commercial real estate properties of $1,760 million and $1,802 million (net of allowance for credit losses of $18 million and $19 million) and residential mortgage loans of $435 million and $395 million (net of allowance for credit losses of an insignificant amount), as of September 30, 2026 and December 31, 2025, respectively. As of September 30, 2026, the commercial mortgage loan portfolio had no 56 %, debt service coverage of 1.6 , and an insignificant amount of scheduled maturities through 2026. A summary of our insurance liabilities and annuity benefits is presented below.
September 30, 2026 | Long-term care | Structured settlement annuities | Life | Other contracts | Total | ||||||||||||
Future policy benefit reserves | $ | $ | $ | $ | $ | ||||||||||||
Investment contracts | |||||||||||||||||
Other | |||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||
24 2026 3Q FORM 10-Q
December 31, 2025 | |||||||||||||||||
Future policy benefit reserves | $ | $ | $ | $ | $ | ||||||||||||
Investment contracts | |||||||||||||||||
Other | |||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||
The following tables summarize balances of and changes in future policy benefit reserves.
| September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||||||||
| Long-term care | Structured settlement annuities | Life | Long-term care | Structured settlement annuities | Life | ||||||||||||||||||||||||||||||
| Present value of expected net premiums | |||||||||||||||||||||||||||||||||||
| Balance, beginning of year | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Beginning balance at locked-in discount rate | |||||||||||||||||||||||||||||||||||
| Effect of changes in cash flow assumptions | |||||||||||||||||||||||||||||||||||
| Effect of actual variances from expected experience (a) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Adjusted beginning of year balance | |||||||||||||||||||||||||||||||||||
| Interest accrual | |||||||||||||||||||||||||||||||||||
| Net premiums collected | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Effect of foreign currency | ( | ||||||||||||||||||||||||||||||||||
| Ending balance at locked-in discount rate | |||||||||||||||||||||||||||||||||||
| Effect of changes in discount rate assumptions | |||||||||||||||||||||||||||||||||||
| Balance, end of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Present value of expected future policy benefits | |||||||||||||||||||||||||||||||||||
| Balance, beginning of year | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Beginning balance at locked-in discount rate | |||||||||||||||||||||||||||||||||||
| Effect of changes in cash flow assumptions | ( | ( | |||||||||||||||||||||||||||||||||
| Effect of actual variances from expected experience (a) | ( | ( | |||||||||||||||||||||||||||||||||
| Adjusted beginning of year balance | |||||||||||||||||||||||||||||||||||
| Interest accrual | |||||||||||||||||||||||||||||||||||
| Benefit payments | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Effect of foreign currency | ( | ||||||||||||||||||||||||||||||||||
| Ending balance at locked-in discount rate | |||||||||||||||||||||||||||||||||||
| Effect of changes in discount rate assumptions | ( | ( | |||||||||||||||||||||||||||||||||
| Balance, end of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Net future policy benefit reserves | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Less: Reinsurance recoverables, net of allowance for credit losses | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Net future policy benefit reserves, after reinsurance recoverables | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Weighted-average duration of liability (years)(b) | |||||||||||||||||||||||||||||||||||
| Weighted-average interest accretion rate | % | % | % | % | % | % | |||||||||||||||||||||||||||||
| Current discount rate | % | % | % | % | % | % | |||||||||||||||||||||||||||||
| Gross premiums or assessments recognized during period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Expected future gross premiums, undiscounted | |||||||||||||||||||||||||||||||||||
| Expected future gross premiums, discounted(b) | |||||||||||||||||||||||||||||||||||
| Expected future benefit payments, undiscounted | |||||||||||||||||||||||||||||||||||
| Expected future benefit payments, discounted(b) | |||||||||||||||||||||||||||||||||||
(a) Substantially all of Life reflects novations executed during the three months ended September 30, 2025, in connection with the February 3, 2025 Canadian life and health insurance portfolio reinsurance transaction.
(b) Determined using the current discount rate as of September 30, 2026 and 2025.
As of September 30, 2026 and 2025, policyholders account balances totaled $1,292 million and $1,407 million, respectively. As our insurance operations are in run-off, changes in policyholder account balances for the nine months ended September 30, 2026 and 2025 are primarily attributed to surrenders, withdrawals and benefit payments of $261 million and $367 million, partially offset by net additions from separate accounts and interest credited of $174 million and $197 million, respectively. Interest on policyholder account balances is generally credited at minimum guaranteed rates, primarily between 3.0 % and 6.0 % at both September 30, 2026 and 2025, respectively.
2026 3Q FORM 10-Q 25
Our 2026 annual review of future policy benefit reserves cash flow assumptions resulted in an increase in net future policy benefit reserves, after reinsurance recoverables and a pre-tax charge to earnings of $328 million ($259 million, after-tax), primarily related to claims experience and long-term care cost of care inflation, partially offset by premium rate increases. Our 2025 annual review of future policy benefit reserves cash flow assumptions resulted in an increase in net future policy benefit reserves, after reinsurance recoverables and a pre-tax charge to earnings of $126 million ($100 million, after-tax), primarily related to long-term care cost of care inflation and lower policy terminations or benefit reductions related to premium rate increases assumptions, partially offset by favorable experience, including mortality.
Included in Insurance losses and annuity benefits in our Statement of Earnings (Loss) for the nine months ended September 30, 2026 and 2025 are unfavorable pre-tax adjustments of $368 million and $166 million respectively, from updating the net premium ratio (i.e., the percentage of projected gross premiums required to cover expected policy benefits and related expenses) after updating for actual historical experience each quarter and updating of future cash flow assumptions. Included in these amounts for the nine months ended September 30, 2026 and 2025, are unfavorable adjustments of $222 million and $189 million, respectively, due to insufficient gross premiums (i.e., net premium ratio exceeded 100%), related to certain cohorts in our long-term care and life insurance portfolios. These adjustments are primarily attributable to increases in the net premium ratio as a result of updating future cash flow assumptions on cohorts where the beginning of the period net premium ratio exceeded 100%.
See Notes 3 and 9 for further information related to our run-off insurance operations.
NOTE 13. POSTRETIREMENT BENEFIT PLANS. We sponsor a number of pension and retiree health and life insurance benefit plans that we present in three categories; principal pension plans, other pension plans and principal retiree benefit plans. Please refer to Note 13 to the consolidated financial statements of our Annual Report on Form 10-K for the year ended December 31, 2025 for further information.
The components of benefit plans cost other than the service cost are included in the caption Non-operating benefit costs in our Statement of Operations.
| PRINCIPAL PENSION PLANS | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Service cost for benefits earned | $ | $ | $ | $ | |||||||||||||
| Prior service cost amortization | ( | ( | ( | ||||||||||||||
| Expected return on plan assets | ( | ( | ( | ( | |||||||||||||
| Interest cost on benefit obligations | |||||||||||||||||
| Net actuarial gain amortization | ( | ( | ( | ( | |||||||||||||
| Net periodic expense (income) | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||
Principal retiree benefit plans income was $13 million and $17 million for the three months ended September 30, 2026 and 2025, and $39 million and $49 million for the nine months ended September 30, 2026 and 2025, respectively.
NOTE 14. SALES DISCOUNTS AND ALLOWANCES & ALL OTHER LIABILITIES. Sales discounts and allowances increased $1,564 million during the nine months ended September 30, 2026, primarily due to increases in allowances on new engine installs and spare parts, as well as product durability reserves at Commercial Engines & Services.
All other current liabilities and All other liabilities primarily include employee compensation and benefits, equipment project and commercial liabilities, uncertain and other income taxes and related liabilities, environmental, health and safety remediations and operating lease liabilities (see Note 6). All other current liabilities decreased by $253 million during the nine months ended September 30, 2026, primarily related to a decrease in employee compensation and benefit liabilities of $226 million and a decrease in equipment projects and other commercial liabilities of $122 million. All other liabilities increased $156 million during the nine months ended September 30, 2026, primarily due to an increase in environmental, health and safety liabilities of $240 million and an increase in equipment projects and other commercial liabilities of $93 million, partially offset by a decrease in uncertain and other income taxes and related liabilities of $207 million.
NOTE 15. INCOME TAXES. Our effective income tax rate was 13.4 % and 14.2 % for the nine months ended September 30, 2026 and 2025, respectively. The decrease in our effective tax rate was primarily attributable to higher tax benefits related to global activities, including the impact of the One Big Beautiful Bill Act (OBBBA), partially offset by lower tax benefits from business tax credits.
26 2026 3Q FORM 10-Q
In 2026, the Organisation for Economic Co-operation and Development (OECD)/G20 issued a Side-by-Side package (SbS) that simplifies Pillar 2, creates new safe harbors, fully exempts U.S.-parented groups from two of the three top-up taxes, and extends the Transitional Country-by-Country Reporting (CbCR) Safe Harbor through fiscal year 2027. In certain jurisdictions, local legislative action is needed to effectuate the SbS agreement and cannot be considered in our accounting estimate until enactment. We continue to refine the effective tax rate and cash tax impact of Pillar 2 as legislative changes are implemented in multiple countries, but we do not expect significant changes in the tax provision as countries adopt the SbS.
The Internal Revenue Service (IRS) is currently auditing our consolidated U.S. income tax returns for 2016-2020. Since March 2026, we have received several Acknowledgement of Facts Information Document Requests (AOF IDRs) from the IRS regarding the application of additional tax and potential penalties related to the Company's income tax computations before and after the 2017 Tax Cuts and Jobs Act, which among other things provided for a one-time transition tax on certain undistributed earnings and profits of foreign subsidiaries. The Company has responded to these requests and believes the amounts previously accrued are sufficient; however, the IRS may assert a material amount of additional taxes and penalties as this process continues. The Company would contest any such additional amounts, and it is not possible to provide a meaningful estimate at this time. Any such obligations would be allocated among the Company, GE Vernova and GE HealthCare in accordance with the tax matters agreements entered into as part of the separations. Regardless of the outcome, a final resolution of this matter could be time-consuming and is not likely within the next 12 months. An unfavorable ultimate resolution of this matter could adversely affect the Company's results of operations and cash flow.
The following table presents our net deferred tax assets and net deferred tax liabilities attributable to different tax jurisdictions or different tax paying components.
DEFERRED INCOME TAXES | September 30, 2026 | December 31, 2025 | ||||||
| Total assets | $ | $ | ||||||
| Total liabilities | ( | ( | ||||||
| Net deferred income tax asset | $ | $ | ||||||
NOTE 16. SHAREHOLDERS’ EQUITY
| ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||
| (Dividends per share in dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||
| Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||
AOCI before reclasses – net of taxes of $( | ( | ( | ||||||||||||||||||
| AOCI | ( | ( | ||||||||||||||||||
| Currency translation adjustments AOCI | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||
| Beginning balance | $ | ( | $ | $ | ( | $ | ||||||||||||||
AOCI before reclasses – net of taxes of $( | ( | ( | ||||||||||||||||||
Reclasses from AOCI – net of taxes of $( | ( | ( | ( | ( | ||||||||||||||||
| AOCI | ( | ( | ( | ( | ||||||||||||||||
| Benefit plans AOCI | $ | ( | $ | $ | ( | $ | ||||||||||||||
| Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||
AOCI before reclasses – net of taxes of $( | ( | ( | ||||||||||||||||||
Reclasses from AOCI – net of taxes of $ | ( | ( | ( | |||||||||||||||||
| AOCI | ( | ( | ||||||||||||||||||
| Investment securities and cash flow hedges AOCI | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||
| Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||
AOCI before reclasses – net of taxes of $ | ( | ( | ||||||||||||||||||
| AOCI | ( | ( | ||||||||||||||||||
| Long-duration insurance contracts AOCI | $ | $ | ( | $ | $ | ( | ||||||||||||||
AOCI at September 30 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||
| Dividends declared per common share | $ | $ | $ | $ | ||||||||||||||||
Common stock. GE Aerospace common stock shares outstanding were 1,033,351,921 and 1,048,766,702 as of September 30, 2026 and December 31, 2025, respectively. We repurchased 5.0 million shares for $1,983 million and 19.1 million shares for $6,206 million during the three and nine months ended September 30, 2026. This included repurchases of 2.4 million shares for $1,087 million and 10.1 million shares for $3,425 million during the three and nine months ended September 30, 2026 using accelerated share repurchases, which were utilized as a mechanism to achieve planned repurchase volumes within a quarter during closed windows. The Company's share repurchase program does not obligate it to acquire any specific number of shares. Under this program, shares may be purchased in the open market, in privately negotiated transactions, under accelerated share repurchase programs or under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended.
2026 3Q FORM 10-Q 27
NOTE 17. EARNINGS PER SHARE (EPS) INFORMATION
| Three months ended September 30 | 2026 | 2025 | |||||||||||||||
| (Earnings for per-share calculation, shares in millions, per-share amounts in dollars) | Diluted | Basic | Diluted | Basic | |||||||||||||
| Net income (loss) from continuing operations attributable to common shareholders | $ | $ | $ | $ | |||||||||||||
| Net income (loss) from discontinued operations | ( | ( | ( | ( | |||||||||||||
| Net income (loss) attributable to common shareholders | |||||||||||||||||
| Shares of common stock outstanding | |||||||||||||||||
Employee compensation-related shares (including stock options) | — | — | |||||||||||||||
Total average equivalent shares | |||||||||||||||||
| EPS from continuing operations | $ | $ | $ | $ | |||||||||||||
| EPS from discontinued operations | ( | ( | ( | ( | |||||||||||||
| Net EPS | |||||||||||||||||
| Potentially dilutive securities(a) | |||||||||||||||||
| Nine months ended September 30 | 2026 | 2025 | |||||||||||||||
| (Earnings for per-share calculation, shares in millions, per-share amounts in dollars) | Diluted | Basic | Diluted | Basic | |||||||||||||
| Net income (loss) from continuing operations attributable to common shareholders | $ | $ | $ | $ | |||||||||||||
| Net income (loss) from discontinued operations | ( | ( | |||||||||||||||
| Net income (loss) attributable to common shareholders | |||||||||||||||||
| Shares of common stock outstanding | |||||||||||||||||
Employee compensation-related shares (including stock options) | — | — | |||||||||||||||
Total average equivalent shares | |||||||||||||||||
| EPS from continuing operations | $ | $ | $ | $ | |||||||||||||
| EPS from discontinued operations | ( | ( | |||||||||||||||
| Net EPS | |||||||||||||||||
| Potentially dilutive securities(a) | |||||||||||||||||
(a) Outstanding stock awards not included in the computation of diluted earnings per share because their effect was antidilutive.
NOTE 18. OTHER INCOME (LOSS)
| Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Net interest and investment income (loss)(a) | $ | $ | $ | $ | ||||||||||||||||
| Licensing and royalty income | ||||||||||||||||||||
| Equity method income | ||||||||||||||||||||
| Other items | ||||||||||||||||||||
| Total other income (loss) | $ | $ | $ | $ | ||||||||||||||||
(a) Included unrealized gain of $122 million and unrealized loss of $140 million related to our investment in BETA Technologies, Inc. for the three and nine months ended September 30, 2026, respectively.
NOTE 19. RESTRUCTURING CHARGES AND SEPARATION COSTS
RESTRUCTURING AND OTHER CHARGES. This table is inclusive of all restructuring charges in our segments and at Corporate & Other. Separately, in our reported segment results, significant, higher-cost restructuring programs, primarily related to the separations, and acquisition-related costs are excluded from measurement of segment operating performance for internal and external purposes; those excluded amounts are reported in Restructuring and other charges for Corporate & Other.
| RESTRUCTURING AND OTHER CHARGES | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Workforce reductions | $ | $ | $ | $ | ||||||||||||||||
| Plant closures & associated costs and other asset write-downs | ||||||||||||||||||||
| Acquisition/disposition net charges and other(a) | ( | ( | ||||||||||||||||||
| Total restructuring and other charges | $ | ( | $ | $ | $ | |||||||||||||||
| Cost of equipment/services | $ | $ | $ | $ | ||||||||||||||||
| Selling, general and administrative expenses | ||||||||||||||||||||
| Other (income) loss(a) | ( | ( | ||||||||||||||||||
| Total restructuring and other charges | $ | ( | $ | $ | $ | |||||||||||||||
| Restructuring and other cash expenditures(b) | $ | $ | $ | $ | ||||||||||||||||
(a) Includes $52 million excise tax refund recorded in Other income related to our 2023 preferred share redemption.
(b) Primarily related to employee severance payments.
28 2026 3Q FORM 10-Q
The restructuring liability as of September 30, 2026 and December 31, 2025 was $63 million and $91 million, respectively.
For the three and nine months ended September 30, 2026, and 2025, restructuring and other charges for ongoing programs included exit activities reflecting lower Corporate & Other shared-service and footprint needs as a result of the GE HealthCare and GE Vernova spin-offs, which are substantially completed, and acquisition-related costs.
SEPARATION COSTS. In November 2021, the Company announced its plan to form three industry-leading, global public companies focused on the growth sectors of aerospace, healthcare and energy. As discussed in Note 2, we completed this plan with the spin of GE Vernova in the second quarter of 2024. Post-separation, we incur operational and transition costs related to separation activities, primary related to information technology systems, and other transformation to transition to a stand-alone public company. These costs are presented as separation costs in our Statement of Operations. We have completed separation activities, including the transition services agreement with GE Vernova, and expect an insignificant amount of costs for the remainder of 2026.
For the three months ended September 30, 2026 and 2025, we incurred pre-tax separation costs of $3 million and $53 million, recognized $1 million and $11 million of net tax benefits and paid $27 million and $56 million in cash, respectively.
For the nine months ended September 30, 2026 and 2025, we incurred pre-tax separation costs of $93 million and $150 million, recognized $19 million and $31 million of net tax benefits and paid $143 million and $202 million in cash, respectively.
NOTE 20. FINANCIAL INSTRUMENTS. The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all these assets are considered Level 3 and substantially all these liabilities are considered Level 2 in the fair value hierarchy. Cash, cash equivalents and time deposits with maturities greater than three months are excluded from the table below, as the carrying value approximates their fair value because of the relatively short-term maturities of these financial instruments.
| September 30, 2026 | December 31, 2025 | |||||||||||||||||||
| Carrying amount (net) | Estimated fair value | Carrying amount (net) | Estimated fair value | |||||||||||||||||
| Assets | Commercial and residential mortgage loans (Note 12) | $ | $ | $ | $ | |||||||||||||||
| Liabilities | Borrowings (Note 10) | |||||||||||||||||||
| Investment contracts (Note 12) | ||||||||||||||||||||
Assets and liabilities that are reflected in the accompanying financial statements at fair value are not included in the above disclosures; such items include investment securities (see Note 3) and derivative financial instruments below.
DERIVATIVES AND HEDGING. Per our policy, derivatives are used solely for managing risks and not for speculative purposes. We use derivatives to manage risks related to foreign currency exchange (including foreign equity investments), interest rates and commodity prices.
We use foreign currency forward and cross-currency interest rate swap contracts designated as cash flow hedges primarily to reduce the effects of foreign exchange rate changes. The gains or losses on derivatives that are designated as cash flow hedges are initially recorded in Statement of Other Comprehensive Income (Loss) and subsequently reclassified to earnings when the hedged transaction affects earnings. We expect to reclassify $4 million of gains from AOCI to earnings in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions.
We use our foreign currency debt and cross-currency interest rate swaps in net investment hedges to hedge currency exposure of our net investments in foreign operations. Gains and losses on net investment hedges are initially recorded in the Statement of Other Comprehensive Income (Loss). The carrying value of foreign currency debt designated as net investment hedges was $4,781 million and $4,958 million as of September 30, 2026 and December 31, 2025, respectively.
We designated fixed-to-floating interest rate swaps as fair value hedges to hedge interest rate risks on our issued debt, closer aligning interest rate sensitivity between debt and cash. For the three and nine months ended September 30, 2026, gain or (loss) on interest rate swaps was $(90 ) million and $(100 ) million, respectively, recognized in interest and other financial changes and offset by the changes of fair value of the hedged debts within the same line in the Statement of Operations.
For cross-currency interest rate swaps and interest rate swaps in qualified hedging relationships, we recognize the periodic interest settlements within Interest and other financial charges in the Statement of Operations. Such amounts reduced Interest and other financial charges by $10 million and $9 million for the three months ended September 30, 2026 and 2025, respectively, and $30 million and $17 million for the nine months ended September 30, 2026 and 2025, respectively. The cash flows associated with these periodic interest settlements are classified as operating activities in the Statement of Cash Flows.
2026 3Q FORM 10-Q 29
We also use derivatives for economic hedges when we have exposures to currency exchange risk for which we are unable to meet the requirements for hedge accounting or when changes in the carrying amount of the hedged item are already recorded in income in the same period as the derivative making hedge accounting unnecessary. Even though the derivative is an effective economic hedge, there may be a net effect on income in each period due to differences in the timing of income recognition between the derivative and the hedged item.
| FAIR VALUE OF DERIVATIVES | September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||
| Classification(a) | Gross Notional | Fair Value - Assets | Fair Value - Liabilities | Gross Notional | Fair Value - Assets | Fair Value - Liabilities | ||||||||||||||||||||
| Qualifying currency exchange contracts | Current | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
| Qualifying cross currency interest rate swaps | Current | |||||||||||||||||||||||||
| Qualifying cross currency interest rate swaps | Non-Current | |||||||||||||||||||||||||
| Qualifying interest rate swaps | Non-Current | |||||||||||||||||||||||||
| Non-qualifying currency exchange contracts and other(b) | Current | |||||||||||||||||||||||||
| Gross derivatives | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Netting and credit adjustments | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
| Net derivatives recognized in Statement of Financial Position | $ | $ | $ | $ | ||||||||||||||||||||||
(a) The fair values of derivatives classified as current are components of All other current assets and All other current Liabilities. Fair values of derivatives classified as non-current are components of All other assets and All other liabilities in the Statement of Financial Position.
(b) Gains (losses) included in our Statement of Operations were $(22 ) million and $(22 ) million for the three months ended September 30, 2026 and 2025, and $(17 ) million and $194 million for nine months ended September 30, 2026 and 2025, respectively, primarily in Selling, general and administrative expenses and Other income (loss), driven by hedges of foreign currency exchange and deferred employee compensation. Substantially all of these amounts are offset by the remeasurement of the underlying exposure through earnings.
CASH FLOW HEDGES AND NET INVESTMENT HEDGES
| Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives | Amount of Gain (Loss) Reclassified from AOCI into Net Income | |||||||||||||||||||||||||||||||
| Three months ended September 30 | Nine months ended September 30 | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Cash flow hedges(a) | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||
| Net investment hedges | ( | ( | ( | |||||||||||||||||||||||||||||
FAIR VALUE HEDGES. As of September 30, 2026 and December 31, 2025, the cumulative amount of hedging adjustments (primarily from discontinued hedges) of $774 969 8,609 million and $8,286 million, respectively. Cumulative adjustments related to previously discontinued hedges will continue to amortize into interest expense until the borrowings mature.
COUNTERPARTY CREDIT RISK. Our exposures to counterparties (including accrued interest) were $29 million and $187 million as of September 30, 2026 and December 31, 2025, respectively. Counterparties' exposures to our derivative liability (including accrued interest), were $108 million and $71 million as of September 30, 2026 and December 31, 2025, respectively.
NOTE 21. VARIABLE INTEREST ENTITIES. In our Statement of Financial Position, we have assets of $181 million and $170 million and liabilities of $141 million and $144 million as of September 30, 2026 and December 31, 2025, respectively, in consolidated variable interest entities (VIEs). These VIEs are primarily associated with a legacy business in Corporate & Other and have no features that could expose us to losses that would significantly exceed the difference between the consolidated assets and liabilities.
30 2026 3Q FORM 10-Q
NOTE 22. COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES
COMMITMENTS. As of September 30, 2026, we had total investment commitments of $4,410 million, related to investments by our run-off insurance operations in investment securities and other assets. Included within these commitments are obligations to make investments in unconsolidated VIEs of $4,210 million. Additionally, we have committed to provide financing assistance of $2,811 million for future customer acquisitions of aircraft equipped with our engines. We believe there is a low probability of utilization of this financing assistance based on the terms under which the financing would be provided. See Note 21 for further information regarding VIEs.
Credit support and indemnification agreements - Continuing Operations. Following the separation of GE Vernova, we have remaining performance and bank guarantees on behalf of GE Vernova. To support GE Vernova in selling products and services globally, we often entered into contracts on behalf of GE Vernova or issued parent company guarantees or trade finance instruments supporting the performance of what were subsidiary legal entities transacting directly with customers, in addition to providing similar credit support for non-customer related activities of GE Vernova (collectively, "GE Aerospace credit support"). Under the Separation and Distribution Agreement (SDA), GE Vernova is obligated to use reasonable best efforts to replace us as the guarantor on or terminate all such credit support instruments. Until such termination or replacement, in the event of non-fulfillment of contractual obligations by the relevant obligor(s), we could be obligated to make payments under the applicable instruments. Under the SDA, GE Vernova is obligated to reimburse and indemnify us for any such payments. As of September 30, 2026, we estimated GE Vernova RPO and other obligations that relate to GE Aerospace credit support to be approximately $5,400 million, a 92 % reduction since December 31, 2023. We expect approximately $3,700 million of the RPO related to GE Aerospace credit support obligations to contractually mature by the end of 2030. Additionally, beginning in 2025, GE Vernova is paying us a quarterly fee based on amounts related to the GE Aerospace credit support. We have recorded a reserve of $59 million for our stand ready to perform obligation. Our maximum aggregate exposure under the GE Aerospace credit support cannot be reasonably estimated given the breadth of the portfolio across each of the GE Vernova businesses except for certain financial guarantees and trade finance instruments with a maximum exposure of approximately $161 million. The underlying obligations are predominantly customer contracts that GE Vernova performs in the normal course of its business. We have no known instances historically where payments or performance were required by us under parent company guarantees relating to GE Vernova customer contracts. In connection with the spin-off of GE Vernova, under terms of the SDA, Transition Service Agreement (TSA) and Tax Matters Agreement (TMA), we have an obligation to indemnify GE Vernova for certain of its severance costs, environmental matters and tax matters of $142 million, of which $90 million is reserved.
We also have specific indemnities related to the spin-off or disposal of GE's other legacy businesses for which the aggregate maximum potential exposure is $123 million and the aggregated related reserves are $72 million.
Credit support and indemnification agreements- Discontinued Operations. Following the separation of GE Vernova, we also have performance obligations related to GE Vernova nuclear decommissioning with a maximum aggregate exposure of $638 million for which we are fully indemnified. Also, under the SDA, TSA and TMA agreements we have obligations to indemnify GE Vernova for costs of certain environmental matters and tax matters of $35 million, which are fully reserved.
We also have specific indemnities related to the spin-off or disposal of GE's other legacy businesses for which the aggregate maximum potential exposure is $453 million and the aggregated related reserves are $74 million.
PRODUCT WARRANTIES. We provide for estimated product warranty expenses when we sell the related products. Because warranty estimates are forecasts that are based on the best available information, mostly historical claims experience, claims costs may differ from amounts provided. The liability for product warranties was $585 million and $595 million as of September 30, 2026 and December 31, 2025.
LEGAL MATTERS. The following information supplements and amends the discussion of Legal Matters in Note 24 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025; refer to that discussion for information about previously reported legal matters that are not updated below. In the normal course of our business, we are involved from time to time in various arbitrations, class actions, commercial litigation, investigations and other legal, regulatory or governmental actions, including the significant matters described below that could have a material impact on our results of operations. In many proceedings, including the specific matters described below, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the size or range of the possible loss, and accruals for legal matters are not recorded until a loss for a particular matter is considered probable and reasonably estimable. Given the nature of legal matters and the complexities involved, it is often difficult to predict and determine a meaningful estimate of loss or range of loss until we know, among other factors, the particular claims involved, the likelihood of success of our defenses to those claims, the damages or other relief sought, how discovery or other procedural considerations will affect the outcome, the settlement posture of other parties and other factors that may have a material effect on the outcome. For these matters, unless otherwise specified, we do not believe it is possible to provide a meaningful estimate of loss at this time. Moreover, it is not uncommon for legal matters to be resolved over many years, during which time relevant developments and new information must be continuously evaluated.
2026 3Q FORM 10-Q 31
Bank BPH. As previously reported, Bank BPH, along with other Polish banks, has been subject to ongoing litigation in Poland related to its portfolio of floating rate residential mortgage loans, with cases brought by individual borrowers seeking relief related to their foreign currency indexed or denominated mortgage loans in various courts throughout Poland. For a number of years, we have observed an increase in the total number of lawsuits being brought against Bank BPH and other banks in Poland by current and former borrowers, and we expect this to continue in future reporting periods. As previously reported, GE and Bank BPH approved the adoption of a settlement program and recorded an additional charge of $1,014 million in the quarter ended June 30, 2023. The estimate of total losses for borrower litigation at Bank BPH was $1,658 million and $2,334 million as of September 30, 2026 and December 31, 2025, respectively. This estimate accounts for the costs associated with borrowers who we estimate will participate in the settlement program, as well as estimates for the results of litigation with other borrowers, which in either case can exceed the value of the current loan balance, and represents our best estimate of the total losses we expect to incur over time informed by experience since adopting the program. However, there are a number of factors that could affect the estimate in the future, refer to the disclosure about Bank BPH in our Annual Report on Form 10-K for the year ended December 31, 2025.
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS. Our operations involve or have involved the use, disposal and cleanup of substances regulated under environmental protection laws, including activities for a variety of matters related to GE businesses that have been discontinued or exited. We record reserves for obligations for ongoing and future environmental remediation activities, such as the Housatonic River cleanup, and for additional liabilities we expect to incur in connection with previously remediated sites, such as natural resource damages for the Hudson River where GE completed dredging in 2019. Additionally, like many other industrial companies, we and our subsidiaries are defendants in various lawsuits related to alleged exposure by workers and others to asbestos, polychlorinated biphenyls (PCBs) or other hazardous materials. Liabilities for environmental remediation and worker exposure claims exclude possible insurance recoveries. It is reasonably possible that our exposure will exceed amounts accrued due to uncertainties about the status of laws, regulations, technology and information related to individual sites and worker exposure lawsuits. Total reserves related to environmental remediation and worker exposure claims were $2,222 million and $2,129 million as of September 30, 2026 and December 31, 2025, respectively.
NOTE 23. SEGMENT INFORMATION & REMAINING PERFORMANCE OBLIGATION. We have two reportable segments and three operating segments. Operating segments are aggregated into a reportable segment if the operating segments have similar quantitative economic characteristics and if the operating segments are similar in the following qualitative characteristics: (i) nature of products and services; (ii) nature of production processes; (iii) type or class of customer for their products and services; (iv) methods used to distribute the products or provide services; and (v) if applicable, the nature of the regulatory environment. We have aggregated Defense & Systems and Propulsion & Additive Technology into one reportable segment, Defense & Propulsion Technologies, based on similarity in economic characteristics, other qualitative factors and the objectives and principles of ASC 280, Segment Reporting. This is consistent with how our chief operating decision maker (CODM) allocates resources and makes decisions. Refer to our Annual Report on Form 10-K for the year ended December 31, 2025, for a description of our segments, further information regarding our determination of segment profit for continuing operations and our allocations of corporate costs to our segments.
On January 15, 2026, we announced that our CES segment will expand to include the entire commercial engine lifecycle, including safety and quality, product management, engineering, supply chain, manufacturing and aftermarket services. In addition, our Aeroderivative business, previously reported in CES, has moved to our DPT segment. We have recast previously reported amounts to conform to the updated segment presentation.
The Company does not report total assets by segment for internal or external reporting purposes as the Company’s CODM does not assess performance, make strategic decisions, or allocate resources based on assets.
| EQUIPMENT & SERVICES REVENUE | |||||||||||||||||||||||
| Three months ended September 30 | 2026 | 2025 | |||||||||||||||||||||
| Equipment | Services | Total | Equipment | Services | Total | ||||||||||||||||||
| Commercial Engines & Services | $ | $ | $ | $ | $ | $ | |||||||||||||||||
| Defense & Propulsion Technologies | |||||||||||||||||||||||
| Total segment revenue | $ | $ | $ | $ | $ | $ | |||||||||||||||||
| Nine months ended September 30 | 2026 | 2025 | |||||||||||||||||||||
| Equipment | Services | Total | Equipment | Services | Total | ||||||||||||||||||
| Commercial Engines & Services | $ | $ | $ | $ | $ | $ | |||||||||||||||||
| Defense & Propulsion Technologies | |||||||||||||||||||||||
| Total segment revenue | $ | $ | $ | $ | $ | $ | |||||||||||||||||
32 2026 3Q FORM 10-Q
| EXPENSES, PROFIT AND INCOME | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Commercial Engines & Services | ||||||||||||||||||||
| Cost of revenue | $ | $ | $ | $ | ||||||||||||||||
| Selling, general and administrative expenses | ||||||||||||||||||||
| Research and development | ||||||||||||||||||||
| Other segment expenses (income)(a) | ( | ( | ( | ( | ||||||||||||||||
| Total Commercial Engines & Services expenses | ||||||||||||||||||||
| Defense & Propulsion Technologies | ||||||||||||||||||||
| Cost of revenue | ||||||||||||||||||||
| Selling, general and administrative expenses | ||||||||||||||||||||
| Research and development | ||||||||||||||||||||
| Other segment expenses (income)(a) | ( | ( | ( | ( | ||||||||||||||||
| Total Defense & Propulsion Technologies expenses | ||||||||||||||||||||
| Commercial Engines & Services | ||||||||||||||||||||
| Defense & Propulsion Technologies | ||||||||||||||||||||
| Total segment profit (loss) | ||||||||||||||||||||
| Corporate & Other | ( | ( | ( | ( | ||||||||||||||||
| Interest and other financial charges | ( | ( | ( | ( | ||||||||||||||||
| Non-operating benefit income (cost) | ||||||||||||||||||||
| Benefit (provision) for income taxes | ( | ( | ( | ( | ||||||||||||||||
| Net income (loss) from continuing operations attributable to common shareholders | ||||||||||||||||||||
| Net income (loss) from discontinued operations attributable to common shareholders | ( | ( | ( | |||||||||||||||||
| Net income (loss) attributable to common shareholders | $ | $ | $ | $ | ||||||||||||||||
(a) Other segment expenses (income) primarily includes equity method income, interest income and licensing and royalty income.
OTHER INFORMATION. On August 12, 2026 , H. Lawrence Culp, Jr. , Chairman and Chief Executive Officer , adopted a Rule 10b5-1 trading plan 300,000 shares of the Company’s common stock until November 30, 2027 . The trading plan involves a portion of Mr. Culp’s GE Aerospace shares for diversification, and Mr. Culp’s interests remain strongly aligned with shareholders.
EXHIBITS
11. Computation of Per Share Earnings. Data is provided in Note 17 of this Report.* | ||||||||
101. The following materials from General Electric Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, formatted in XBRL (eXtensible Business Reporting Language); (i) Statement of Operations for the three and nine months ended September 30, 2026 and 2025, (ii) Statement of Financial Position at September 30, 2026 and December 31, 2025, (iii) Statement of Cash Flows for the nine months ended September 30, 2026 and 2025, (iv) Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 30, 2026 and 2025, (v) Statement of Changes in Shareholders' Equity for the three and nine months ended September 30, 2026 and 2025, and (vi) Notes to Consolidated Financial Statements. | ||||||||
Exhibit 104. Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | ||||||||
| *Filed electronically herewith | ||||||||
2026 3Q FORM 10-Q 33
| FORM 10-Q CROSS REFERENCE INDEX | Page(s) | |||||||||||||
| Part I – FINANCIAL INFORMATION | ||||||||||||||
| Item 1. | Financial Statements | 15-33 | ||||||||||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 4-14 | ||||||||||||
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 10, 29-30 | ||||||||||||
| Item 4. | Controls and Procedures | |||||||||||||
Part II – OTHER INFORMATION | ||||||||||||||
| Item 1. | Legal Proceedings | 31-32 | ||||||||||||
| Item 1A. | Risk Factors | Not applicable(a) | ||||||||||||
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||||||||
| Item 3. | Defaults Upon Senior Securities | Not applicable | ||||||||||||
| Item 4. | Mine Safety Disclosures | Not applicable | ||||||||||||
| Item 5. | Other Information | 33 | ||||||||||||
| Item 6. | Exhibits | |||||||||||||
| Signatures | ||||||||||||||
(a) For a discussion of our risk factors, refer to our Annual Report on Form 10-K for the year ended December 31, 2025.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| October 20, 2026 | /s/ Robert Giglietti | |||||||
| Date | Robert Giglietti Vice President - Chief Accounting Officer, Controller and Treasurer Principal Accounting Officer | |||||||
34 2026 3Q FORM 10-Q
Exhibit 31(a)
Certification Pursuant to
Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as Amended
Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as Amended
I, H. Lawrence Culp, Jr., certify that:
1.I have reviewed this quarterly report on Form 10-Q of General Electric Company;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: October 20, 2026
| /s/ H. Lawrence Culp, Jr. | ||
| H. Lawrence Culp, Jr. | ||
| Chairman & Chief Executive Officer | ||
Exhibit 31(b)
Certification Pursuant to
Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as Amended
Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as Amended
I, Rahul Ghai, certify that:
1.I have reviewed this quarterly report on Form 10-Q of General Electric Company;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: October 20, 2026
| /s/ Rahul Ghai | ||
| Rahul Ghai | ||
| Chief Financial Officer | ||
Exhibit 32
Certification Pursuant to
18 U.S.C. Section 1350
18 U.S.C. Section 1350
In connection with the Quarterly Report of General Electric Company (the “registrant”) on Form 10-Q for the period ended September 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “report”), we, H. Lawrence Culp, Jr. and Rahul Ghai, Chief Executive Officer and Chief Financial Officer, respectively, of the registrant, certify, pursuant to 18 U.S.C. § 1350, that to our knowledge:
(1)The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2)The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the registrant.
October 20, 2026
| /s/ H. Lawrence Culp, Jr. | ||
| H. Lawrence Culp, Jr. | ||
| Chairman & Chief Executive Officer | ||
| /s/ Rahul Ghai | ||
| Rahul Ghai | ||
| Chief Financial Officer | ||