Aercap (NYSE:AER) Issues Earnings Results, Beats Estimates By $1.00 EPS

Aercap (NYSE:AER) issued its earnings results on Wednesday. The financial services provider reported $5.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.14 by $1.00, FiscalAI reports. The firm had revenue of $2.22 billion for the quarter, compared to analysts’ expectations of $2.10 billion. Aercap had a net margin of 45.22% and a return on equity of 16.01%. The business’s revenue was up 14.9% on a year-over-year basis. During the same quarter last year, the business earned $2.83 earnings per share. 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

Shares of NYSE AER traded down $3.90 during trading on Wednesday, hitting $150.19. The company had a trading volume of 664,015 shares, compared to its average volume of 1,278,806. The stock has a 50 day simple moving average of $144.39 and a 200 day simple moving average of $143.41. The firm has a market capitalization of $25.06 billion, a P/E ratio of 6.58, a price-to-earnings-growth 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 has a 12 month low of $105.65 and a 12 month high of $156.33.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on AER shares. Morgan Stanley decreased their price objective on Aercap from $160.00 to $155.00 and set an “equal weight” rating for the company in a report on Thursday, April 30th. Truist Financial upped their price objective on Aercap from $161.00 to $175.00 and gave the company a “buy” rating in a research report on Wednesday, July 8th. Zacks Research upgraded Aercap from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 20th. Weiss Ratings raised Aercap from a “buy (b+)” rating to a “buy (a-)” rating in a report on Wednesday, July 8th. Finally, Susquehanna upped their target price on shares of Aercap from $170.00 to $176.00 and gave the company a “positive” rating in a research note on Tuesday, July 7th. Two analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus price target of $168.67.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in Aercap during the fourth quarter valued at about $282,665,000. Alyeska Investment Group L.P. boosted its stake in Aercap by 642.7% in the 3rd 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 grew its holdings in Aercap by 49.9% during the 3rd quarter. Two Sigma Investments LP now owns 1,586,800 shares of the financial services provider’s stock valued at $192,003,000 after buying an additional 528,315 shares in the last quarter. Qube Research & Technologies Ltd raised its position in shares of Aercap by 46.2% during the third quarter. Qube Research & Technologies Ltd now owns 1,301,699 shares of the financial services provider’s stock valued at $157,506,000 after buying an additional 411,364 shares during the last quarter. Finally, Amundi boosted its position in shares of Aercap by 19.7% during the fourth quarter. Amundi now owns 2,303,560 shares of the financial services provider’s stock worth $331,160,000 after acquiring an additional 378,718 shares during the last quarter. Hedge funds and other institutional investors own 96.42% of the company’s stock.

Aercap News Summary

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 declared that its Board of Directors has approved a share buyback 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 repurchase up to 4.3% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s board believes its shares are undervalued.

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.