GENERAL ELECTRIC CO

Previous wording

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 orders and services and growth in our 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.

Current wording

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.

Previous wording

Global material availability continues to cause disruptions and have impacted our production and delivery of equipment and services to our customers. We are investing in our manufacturing facilities, overhaul facilities and our supply chain 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 and inflation will continue, and we are continuing to take action to mitigate the impacts. However, through FLIGHT DECK and the engagement with our suppliers, aftermarket output and engine deliveries have continued to improve quarter over quarter.

Current wording

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.

Previous wording

As we operate in a highly dynamic tariff environment, we are focused on continuing to deliver 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 second quarter, 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.

Current wording

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.

Previous wording

We are monitoring recent developments related to the conflict in the Middle East and the potential impact on the 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. The conflict did not result in a material impact on our operations in the six months ended June 30, 2026.

Current wording

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.

Previous wording

For the three months ended June 30, 2026, total revenue increased $2.3 billion, or 21%, compared to the three months ended June 30, 2025. Equipment revenue increased, driven by increased engine deliveries and improved pricing. Services revenue increased due to increased internal shop visit volume and workscopes, higher spare parts volume and pricing.

Current wording

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.

Previous wording

For the six months ended June 30, 2026, total revenue increased $4.8 billion, or 23%, compared to the six months ended June 30, 2025. Equipment revenue increased, driven by increased engine deliveries and improved pricing. Services revenue increased due to increased internal shop visit volume and workscopes, higher spare parts volume and pricing.

Current wording

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.

Previous wording

For the three months ended June 30, 2026, net income from continuing operations increased $0.4 billion compared to the three months ended June 30, 2025, driven by an increase in segment profit of $0.5 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 an increase in interest and other financial charges of $0.1 billion and an increase in Adjusted Corporate & Other operating costs* of $0.1 billion. Adjusted net income* was $2.1 billion, an increase of $0.3 billion, due to an increase in segment profit of $0.5 billion, partially offset by an increase in Adjusted Corporate & Other operating costs* of $0.1 billion.

Current wording

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.

Previous wording

Profit was $5.0 billion, an increase of $0.4 billion and profit margin was 19.4%, a decrease of 270 basis points. Operating profit* was $5.3 billion, an increase of $0.8 billion and operating profit margin* was 21.8%, a decrease of 160 basis points. Adjusted EPS* was $3.88, an increase of 24%.

Current wording

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%.

Previous wording

For the six months ended June 30, 2026, net income from continuing operations increased $0.4 billion compared to the six months ended June 30, 2025, driven by an increase in segment profit of $1.0 billion, partially offset by a decrease in gains (losses) on retained and sold ownership interests and other equity securities of $0.3 billion, an increase in Adjusted Corporate & Other operating costs* of $0.2 billion, an increase in interest and other financial charges of $0.1 billion and a decrease in Insurance profit of $0.1 billion. Adjusted net income* was $4.1 billion, an increase of $0.7 billion, due to an increase in segment profit of $1.0 billion, partially offset by an increase in Adjusted Corporate & Other operating costs* of $0.2 billion.

Current wording

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.

Previous wording

Profit was $2.8 billion, an increase of $0.4 billion and profit margin was 21.0%, a decrease of 70 basis points. Operating profit* was $2.7 billion, an increase of $0.4 billion and operating profit margin* was 21.7%, a decrease of 130 basis points. Adjusted EPS* was $2.02, an increase of 22%.

Current wording

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%.

Previous wording

As of June 30, 2026, RPO increased $20.2 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.

Current wording

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.

Previous wording

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 six months of 2026, there was a strong demand for engines and services, while commercial air travel departures were roughly flat.

Current wording

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.

Previous wording

Demand continues to be strong and, in the first half of 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 Ryanair's entire fleet of about 2,000 CFM56 and LEAP engines powering its Boeing 737 aircraft.

Current wording

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.

Previous wording

These investments combined with improved material availability contributed to internal shop visit revenue growth of 30% in the first half of 2026, and total engine deliveries and LEAP engine deliveries increases of 37% and 41%, respectively.

Current wording

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).

Previous wording

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 - In the first half 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, through the NASA Electrified Powertrain Flight Demonstration, we recently completed ground tests for the megawatt-class hybrid electric demonstrator.

Current wording

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.

Previous wording

For the three months ended June 30, 2026, revenue was up $0.5 billion, or 16%, and profit was up $0.1 billion, or 18%, compared to the three months ended June 30, 2025.

Current wording

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.

Previous wording

Revenue increased due to internal shop visit volume and workscopes, increased spare parts volume, increased install engine deliveries and pricing.

Current wording

Revenue increased due to growth in internal shop visit volume with heavier workscope, increased spare parts volume, increased engine deliveries and pricing.

Previous wording

Profit increased primarily due to internal shop visit volume and workscopes, increased spare parts volume, and price. These increases were partially offset by the impact of higher install engine deliveries, higher growth investment and inflation.

Current wording

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.

Previous wording

For the three months ended June 30, 2026, revenue was up $2.1 billion, or 27%, and profit was up $0.4 billion, or 20%, compared to the three months ended June 30, 2025.

Current wording

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.

Previous wording

Revenue increased due to internal shop visit volume and workscopes, increased spare parts volume, increased install engine deliveries and pricing.

Current wording

Revenue increased due to growth in internal shop visit volume with heavier workscope, increased spare parts volume, increased engine deliveries and pricing.

Previous wording

Profit increased primarily due to internal shop visit volume and workscopes, 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 quarter of 2026, we recorded an unfavorable change in estimated profitability on long-term service agreements of less than $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 and higher growth investment.

Current wording

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.

Previous wording

As of June 30, 2026, RPO increased $15.4 billion, or 9%, from December 31, 2025, as a result of commercial actions and increases to existing long-term service agreements.

Current wording

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.

Previous wording

DEFENSE & PROPULSION TECHNOLOGIES. Our results in the second 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 half of 2026, increasing 15%, supported by improved material supply.

Current wording

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.

Previous wording

In the first half of 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 also announced a contract award from Turkish Aerospace Industries (TAI) to continue integrating the GE Aerospace F404 engine into Türkiye's jet trainer Hurjet.

Current wording

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.

Previous wording

Profit increased primarily due to volume and price, partially offset by inflation, mix and incremental investments to support next-generation products.

Current wording

Profit increased primarily due to volume and price, partially offset by mix and inflation.

Previous wording

Profit increased primarily due to volume and price, partially offset by inflation, mix and incremental investments to support next-generation products.

Current wording

Profit increased primarily due to volume and price, partially offset by incremental investments to support next-generation products, inflation and mix.

Previous wording

As of June 30, 2026, RPO increased $4.8 billion, or 19%, from December 31, 2025, primarily due to increases in equipment from orders outpacing revenue recognized.

Current wording

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.

Previous wording

For the three months ended, June 30, 2026, revenue decreased by $0.2 billion compared to the three months ended June 30, 2025, primarily due to lower run-off insurance operations revenue and higher intercompany eliminations. Corporate & Other operating cost was relatively flat primarily due to $0.1 billion of higher gains on retained and sold ownership interests and other equity securities offset by $0.1 billion of higher Adjusted Corporate & Other operating costs*.

Current wording

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.

Previous wording

Adjusted Corporate & Other operating costs* increased by $0.2 billion due to higher EHS costs, lower bank interest and higher intercompany profit eliminations.

Current wording

Adjusted Corporate & Other operating costs* decreased by $0.2 billion due to lower functional costs and lower EHS costs.

Previous wording

For the six months ended, June 30, 2026, revenue decreased by $0.5 billion compared to the six months ended June 30, 2025, primarily due to lower run-off insurance operations revenue and higher intercompany eliminations. Corporate & Other operating cost increased by $0.6 billion, primarily due to $0.2 billion of higher losses on retained and sold ownership interests and other equity securities, $0.2 billion of higher Adjusted Corporate & Other operating costs* and $0.1 billion of lower run-off insurance operations profit.

Current wording

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*.

Previous wording

Adjusted Corporate & Other operating costs* increased by $0.1 billion due to higher EHS costs, lower bank interest and higher intercompany profit eliminations.

Current wording

Adjusted Corporate & Other operating costs* increased by $0.1 billion due to higher intercompany profit eliminations.

Previous wording

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 substantially completed separation activities and expect an insignificant amount of costs in the second half of 2026. See Note 19 for further information on restructuring and separation costs.

Current wording

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.

Previous wording

INTEREST AND OTHER FINANCIAL CHARGES were $0.2 billion for both the three months ended June 30, 2026 and 2025, and $0.4 billion for both the six months ended June 30, 2026 and 2025. The primary components of interest and other financial charges are interest on short-term and long-term borrowings and interest on tax deficiencies.

Current wording

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.

Previous wording

INCOME TAXES. For the three months ended June 30, 2026, the effective income tax rate was 14.5% compared to 16.2% for the three months ended June 30, 2025. The decrease in the effective tax rate was primarily driven by increased tax benefits on global activities, including the impact of the One Big Beautiful Bill Act (OBBBA), which were partially offset by a decrease in favorable audit resolutions.

Current wording

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).

Previous wording

For the three months ended June 30, 2026, the adjusted effective income tax rate* was 16.7% compared to 18.7% for the three months ended June 30, 2025. The decrease in the adjusted effective tax rate* was primarily driven by increased tax benefits on global activities, including the impact of the OBBBA, which were partially offset by a decrease in favorable audit resolutions.

Current wording

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.

Previous wording

For the six months ended June 30, 2026, the effective income tax rate was 13.2% compared to 14.5% for the six months ended June 30, 2025. The decrease in the effective tax rate was primarily driven by increased tax benefits on global activities, including the impact of the OBBBA, which were partially offset by a decrease in favorable audit resolutions and a nonrecurring benefit from foreign tax credits on the reinsurance transaction that occurred in 2025.

Current wording

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.

Previous wording

For the six months ended June 30, 2026, the adjusted effective income tax rate* was 15.7% compared to 18.2% for the six months ended June 30, 2025. The decrease in the adjusted effective tax rate* was primarily driven by increased tax benefits on global activities, including the impact of the OBBBA, which were partially offset by a decrease in favorable audit resolutions.

Current wording

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.

Previous wording

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 June 30, 2026, our sources of liquidity of $10.3 billion included cash, cash equivalents and restricted cash of $9.3 billion and time deposits with maturities greater than three months classified as All other current assets of $1.0 billion. Of these amounts, $7.3 billion was held in the U.S. and $3.0 billion was held outside the U.S.

Current wording

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.

Previous wording

Cash, cash equivalents and restricted cash at June 30, 2026 included $0.4 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 $1.2 billion of cash in our run-off insurance operations, which is classified as All other assets in the Statement of Financial Position, and $0.9 billion of cash in our discontinued operations held by Bank BPH (see Note 2).

Current wording

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).

Previous wording

In the second quarter, we repurchased 6.9 million shares for $2.0 billion, including repurchases of 3.5 million shares for $1.0 billion using accelerated stock repurchases as a mechanism to achieve planned repurchase volumes within a quarter during closed windows.

Current wording

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.