### At a Glance This quarter’s results beat expectations, primarily driven by sustained strong demand for commercial services, coupled with FLIGHT DECK operational improvements that significantly boosted delivery volumes.

### Key Data Revenue grew 24%, with Commercial Engine Services (CES) up 27%; earnings per share rose 22% to $2.02; free cash flow increased 43% to $3B.

### Business Progress Commercial services revenue grew 26%, LEAP engine internal shop visits increased over 50%, and spare parts sales rose more than 25%. FLIGHT DECK improved efficiency by reducing key component production cycle times by 60% and shortening CFM56 final assembly time by 50%. A Kaizen improvement initiative with GKN cut inspection time by 90%. The LEAP-1B durability kit received certification, expected to double time on wing. In defense, the X102 adaptive cycle engine entered the assembly phase, and milestones were achieved in the CCA market product.

### Guidance and Outlook Management raised all 2026 guidance: revenue growth expectations increased from low double digits to high teens, CES growth from around 15% to approximately 20%, EPS guidance raised to $7.65–$7.85, and free cash flow guidance raised to $8.9B–$9.2B.

### Risk/Highlight Signals Positive signals: Management emphasized that demand resilience exceeded expectations, customer behavior remained unchanged, and expressed strong confidence in double-digit service growth for 2027. Negative signals: Spare parts backlog grew 20% quarter-over-quarter, and supply chain remains a growth bottleneck.