Aercap (NYSE:AER) Announces Quarterly Earnings Results

Aercap (NYSE:AER) posted its quarterly earnings data on Wednesday. The financial services provider reported $5.14 EPS for the quarter, beating analysts’ consensus estimates of $4.14 by $1.00, FiscalAI reports. The company had revenue of $2.22 billion for the quarter, compared to analyst estimates of $2.10 billion. Aercap had a net margin of 45.22% and a return on equity of 16.01%. The company’s quarterly revenue was up 14.9% on a year-over-year basis. During the same period in the prior year, the firm posted $2.83 EPS. Aercap updated its FY 2026 guidance to 16.800-16.800 EPS.

Here are the key takeaways from Aercap’s conference call:

• Strong quarterly results and higher guidance: Adjusted EPS was $5.14, adjusted ROE was 18%, and operating cash flow reached $1.5 billion. AerCap raised its full-year 2026 adjusted EPS outlook to approximately $16.80, including $2.80 per share of first-half asset-sale gains.
• Robust leasing and asset-sale environment: Passenger aircraft lease extensions reached 85%, while $1.4 billion of assets were sold in the quarter at a 20% gain-on-sale margin. Management expects full-year asset sales of approximately $4 billion to $5 billion, supported by strong buyer demand.
• Capital returns and financial flexibility remain significant: AerCap repurchased $691 million of shares in the quarter and more than $1.4 billion in the first half, while maintaining approximately $3.5 billion of excess capital and a 2.05-to-1 leverage ratio. Management said share repurchases should continue and that leverage could gradually move toward the mid-2x range.
• Expanded wide-body commitments: AerCap ordered 15 Boeing 787s for delivery from 2030 through 2033, citing scarce delivery positions and long-term demand driven by the aging wide-body fleet. The company also added 131 aircraft to its order book this year, including Airbus narrow-body aircraft obtained through airline-related transactions.
• Some risks and uncertainties remain: Net maintenance contribution was unusually high in the first half and is expected to normalize in the second half, while fleet growth is expected to be modest. AerCap is also evaluating aerospace-engine-derived power systems for data centers but remains cautious because of operational, reliability, partner, and long-term demand risks.

Aercap Stock Performance

AER traded down $3.90 during midday trading on Wednesday, reaching $150.19. The company had a trading volume of 664,015 shares, compared to its average volume of 1,278,806. Aercap has a 12-month low of $105.65 and a 12-month high of $156.33. The business has a 50-day moving average price of $144.39 and a two-hundred day moving average price of $143.41. The stock has a market cap of $25.06 billion, a PE ratio of 6.58, a P/E/G ratio of 1.05 and a beta of 0.94. The company has a debt-to-equity ratio of 2.34, a quick ratio of 0.24 and a current ratio of 0.24.

Aercap announced that its Board of Directors has approved a stock repurchase program on Wednesday, April 29th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to reacquire up to 4.3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On Aercap

Several large investors have recently added to or reduced their stakes in AER. Mercer Global Advisors Inc. ADV raised its position in shares of Aercap by 5.0% in the third quarter. Mercer Global Advisors Inc. ADV now owns 2,207 shares of the financial services provider’s stock worth $267,000 after buying an additional 106 shares in the last quarter. Fieldview Capital Management LLC bought a new position in shares of Aercap in the fourth quarter worth approximately $261,000. OpenArc Corporate Advisory LLC purchased a new position in Aercap in the 4th quarter worth approximately $237,000. Pitcairn Co. purchased a new stake in shares of Aercap during the 2nd quarter valued at $235,000. Finally, Aureus Asset Management LLC bought a new stake in shares of Aercap during the 4th quarter worth $216,000. Hedge funds and other institutional investors own 96.42% of the company’s stock.

Analyst Upgrades and Downgrades

AER has been the topic of several research reports. Truist Financial upped their price objective on shares of Aercap from $161.00 to $175.00 and gave the company a “buy” rating in a report on Wednesday, July 8th. TD Cowen upped their target price on shares of Aercap from $175.00 to $180.00 and gave the stock a “buy” rating in a report on Thursday, July 16th. Barclays boosted their price objective on Aercap from $164.00 to $179.00 and gave the stock an “overweight” rating in a report on Tuesday, July 7th. JPMorgan Chase & Co. raised their target price on Aercap from $150.00 to $155.00 and gave the company an “overweight” rating in a report on Thursday, April 30th. Finally, Morgan Stanley dropped their price objective on Aercap from $160.00 to $155.00 and set an “equal weight” rating on the stock in a research note on Thursday, April 30th. Two research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $168.67.

Key Headlines Impacting Aercap

Here are the key news stories impacting Aercap this week:

• Positive Sentiment: AerCap reported adjusted EPS of $5.14, well above the $3.94–$4.14 analyst estimates and up from $2.83 in the year-ago quarter. Revenue increased 14.9% year over year to $2.22 billion, also exceeding expectations. AerCap Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Net income was $726 million, or $4.59 per share, while adjusted net income reached $811 million. Management also characterized the results as strong and raised its 2026 guidance relative to its prior outlook, signaling confidence in operating performance. AerCap Reports Strong Second-Quarter Results
• Neutral Sentiment: The company filed its interim second-quarter financial report with the SEC, providing unaudited consolidated financial statements and notes. The filing formalizes information already disclosed in the earnings release. AerCap Files Second-Quarter Interim Financial Report
• Negative Sentiment: AerCap provided 2026 EPS guidance of $16.80, below the roughly $17.20 analyst consensus cited in the reports. That lower-than-expected outlook may be limiting the market’s reaction to the quarterly beat and prompting profit-taking near the stock’s 52-week high.

Aercap Company Profile

AerCap Holdings N.V. (NYSE: AER) is a global aircraft leasing and aviation finance company that acquires, leases, sells and manages commercial aircraft and engines. Its core services include operating leases, finance leases, sale-and-leaseback transactions, aircraft trading and remarketing, and asset management for airline customers. The company also provides related commercial and technical support services designed to optimize fleet utilization and residual values over the life cycle of aircraft and engines.

Operating with a broad global footprint, AerCap serves airlines and other aviation customers across North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa.