Aercap (NYSE:AER) Posts Earnings Results, Beats Expectations By $1.80 EPS

Aercap (NYSE:AER) posted its earnings results on Wednesday. The financial services provider reported $5.39 EPS for the quarter, topping analysts’ consensus estimates of $3.59 by $1.80, Zacks reports. The business had revenue of $2.30 billion for the quarter, compared to analysts’ expectations of $2.04 billion. Aercap had a net margin of 44.04% and a return on equity of 15.11%. The business’s revenue for the quarter was up 7.9% compared to the same quarter last year. During the same period in the previous year, the company posted $3.68 earnings per share. Aercap updated its FY 2026 guidance to 14.500-14.50 EPS.

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

• AerCap reported a record quarter with GAAP net income of $818M and adjusted net income of $889M (≈19% adjusted ROE), raised full‑year adjusted EPS guidance to $14.50, repurchased $745M of stock and authorized a new $1B buyback.
• Transaction activity and asset sales stayed robust — an 87% lease extension rate, 286 transactions closed (202 new leases), sale of 41 owned assets generating $1.5B and an unlevered gain margin of 24% (1.9x book).
• Management cautioned that if jet fuel remains elevated for 3–6+ months it would pressure airline profitability, could accelerate retirements of older tech aircraft and prompt airline requests for concessions, which could hurt future lease rates and gains on sale.
• Strong liquidity and strategic positioning — below‑target leverage of 2.1x, ~$21B liquidity with >$3B excess capital, added 110 A320neo to backlog and a 100‑aircraft order (deliveries from 2028), enabling growth, sale‑leasebacks and opportunistic deployments.

Aercap Stock Performance

Shares of Aercap stock traded up $2.22 during trading hours on Thursday, reaching $140.33. The company’s stock had a trading volume of 221,265 shares, compared to its average volume of 1,306,201. The company’s 50 day simple moving average is $141.32 and its 200 day simple moving average is $139.27. The company has a debt-to-equity ratio of 2.38, a quick ratio of 0.23 and a current ratio of 0.23. The stock has a market cap of $23.42 billion, a P/E ratio of 6.58, a price-to-earnings-growth ratio of 1.22 and a beta of 0.99. Aercap has a one year low of $105.27 and a one year high of $154.94.

Aercap Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Wednesday, May 13th will be paid a dividend of $0.40 per share. The ex-dividend date is Wednesday, May 13th. This represents a $1.60 annualized dividend and a yield of 1.1%. Aercap’s payout ratio is presently 7.50%.

Institutional Investors Weigh In On Aercap

A number of institutional investors have recently added to or reduced their stakes in AER. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in shares of Aercap in the 4th quarter worth $282,665,000. Alyeska Investment Group L.P. raised its position in shares of Aercap by 642.7% during the third quarter. Alyeska Investment Group L.P. now owns 1,111,552 shares of the financial services provider’s stock worth $134,498,000 after purchasing an additional 961,890 shares during the period. Two Sigma Investments LP lifted its holdings in shares of Aercap by 49.9% during the third quarter. Two Sigma Investments LP now owns 1,586,800 shares of the financial services provider’s stock valued at $192,003,000 after purchasing an additional 528,315 shares during the last quarter. Qube Research & Technologies Ltd boosted its position in shares of Aercap by 46.2% in the 3rd quarter. Qube Research & Technologies Ltd now owns 1,301,699 shares of the financial services provider’s stock valued at $157,506,000 after purchasing an additional 411,364 shares during the period. Finally, Amundi increased its stake in Aercap by 19.7% in the 4th quarter. Amundi now owns 2,303,560 shares of the financial services provider’s stock worth $331,160,000 after purchasing an additional 378,718 shares in the last quarter. 96.42% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Weiss Ratings restated a “buy (b+)” rating on shares of Aercap in a research note on Monday, April 20th. Barclays restated an “overweight” rating and issued a $164.00 price target (up from $162.00) on shares of Aercap in a research note on Thursday. Truist Financial upped their price target on shares of Aercap from $159.00 to $161.00 and gave the company a “buy” rating in a report on Thursday. Deutsche Bank Aktiengesellschaft set a $175.00 price objective on shares of Aercap and gave the company a “buy” rating in a research note on Tuesday, February 10th. Finally, Morgan Stanley upped their target price on shares of Aercap from $150.00 to $160.00 and gave the company an “equal weight” rating in a research note on Monday, March 2nd. Eight analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Aercap currently has a consensus rating of “Moderate Buy” and an average target price of $155.50.

Aercap announced that its Board of Directors has authorized a share buyback program on Wednesday, April 29th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 4.3% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its shares are undervalued.

Key Aercap News

Here are the key news stories impacting Aercap this week:

• Positive Sentiment: Q1 results beat expectations — record adjusted net income of $889M, EPS $5.39 vs. $3.59 expected, revenue $2.30B and strong margins, signaling robust underlying earnings power. AerCap Reports Record Q1 Results
• Positive Sentiment: Board authorized a $1.0B share repurchase program (up to ~4.3% of stock), a shareholder‑friendly move that supports EPS and signals management view that shares are undervalued. RTT News – Stock Buybacks
• Positive Sentiment: Quarterly dividend declared: $0.40/share (record May 13, payable June 4), providing predictable cash return and a ~1.2% yield — supportive for income‑oriented holders.
• Positive Sentiment: Truist raised its price target to $161 and maintained a Buy rating, offering additional analyst support for upside potential. Benzinga – Truist Raises PT
• Neutral Sentiment: AerCap filed its interim Q1 2026 financial report with the SEC (unaudited condensed consolidated statements), ensuring transparency but routine from a disclosure perspective. Interim Financial Report Filing
• Neutral Sentiment: Management notes that prolonged high jet‑fuel/oil prices would pressure airlines but could create opportunities for lessors (e.g., retire older fuel‑inefficient aircraft), a mixed macro factor to monitor. Reuters – Fuel Price Comments
• Neutral Sentiment: Earnings call transcript and slide deck are available for deeper detail on fleet, lease rates and dispositions — useful for modeling, but not new headline news. Earnings Call Transcript
• Negative Sentiment: FY‑2026 adjusted EPS guidance set at $14.50, below the ~$15.40 Street consensus — this gap may limit further near‑term multiple expansion despite the strong quarter. Seeking Alpha – Guidance & Buyback

About Aercap

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.