AerCap (NYSE:AER) Releases Earnings Results, Beats Expectations By $2.00 EPS

AerCap (NYSE:AER) issued its quarterly earnings results on Wednesday. The financial services provider reported $6.56 earnings per share for the quarter, beating the consensus estimate of $4.56 by $2.00, FiscalAI reports. The firm had revenue of $2.42 billion during the quarter, compared to the consensus estimate of $2.15 billion. AerCap had a return on equity of 18.33% and a net margin of 34.47%. The company’s revenue was up 4.6% on a year-over-year basis. During the same period last year, the company earned $4.97 earnings per share.

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

• Record Q3 performance: Adjusted EPS reached $6.56, adjusted ROE was 22%, and management raised full-year 2026 adjusted EPS guidance to approximately $20.70, excluding additional fourth-quarter asset-sale gains.
• Strong aircraft demand and constrained supply continue to support lease rates and asset sales; AerCap’s order book is fully placed through 2027 and 80% placed through 2028, providing substantial earnings visibility.
• AerCap sold 70 assets for $1.1 billion in Q3 at a 45% unlevered gain-on-sale margin, while returning $783 million through share repurchases during the quarter and more than $2.2 billion year to date.
• The company expects 2026 asset sales to exceed $5 billion, but management said sales will likely normalize toward roughly $2.5 billion–$3 billion annually as China-related portfolio reductions slow.
• Elevated fuel prices are pressuring some airlines, particularly longer-haul low-fare operators, and could increase financial distress or reduce flying of less fuel-efficient aircraft; AerCap also expects net maintenance contribution to decline to approximately $50 million per quarter in 2027 from unusually high 2026 levels.

AerCap Trading Down 1.4%

NYSE AER traded down $2.25 during trading on Friday, hitting $157.46. The stock had a trading volume of 176,814 shares, compared to its average volume of 1,226,109. AerCap has a one year low of $129.42 and a one year high of $159.99. The stock has a 50 day simple moving average of $145.47 and a 200 day simple moving average of $144.53. The stock has a market capitalization of $26.28 billion, a price-to-earnings ratio of 8.08, a P/E/G ratio of 0.57 and a beta of 0.98. The company has a debt-to-equity ratio of 2.32, a quick ratio of 0.28 and a current ratio of 0.28.

AerCap Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Wednesday, November 11th will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Tuesday, November 10th. AerCap’s dividend payout ratio (DPR) is 8.20%.

AerCap News Summary

Here are the key news stories impacting AerCap this week:

• Positive Sentiment: Strong third-quarter results and raised outlook: AerCap reported third-quarter 2026 net income of $949 million, or roughly $6.56 per share, exceeding consensus expectations near $4.56–$4.57. Revenue reached $2.42 billion, up 4.6% year over year, and the company raised its full-year adjusted EPS outlook to $20.70. AerCap Holdings NV reports third quarter 2026 net income of $949 million and raises full-year guidance
• Positive Sentiment: Analysts increased price targets: JPMorgan raised its target from $183 to $200 and maintained an “overweight” rating, while Truist lifted its target from $180 to $185 and reiterated a “buy” rating. The revisions indicate continued confidence in AerCap’s earnings outlook and aircraft values.
• Positive Sentiment: New Turkish Airlines leasing business: AerCap signed agreements to lease two Boeing 777-300ERSF converted freighters to Turkish Airlines, with deliveries scheduled from March through September 2027. The deals add long-term contracted revenue and highlight demand for air-cargo aircraft. AerCap Signs Lease Agreements with Turkish Airlines
• Neutral Sentiment: Profit quality bears watching: Coverage indicates that aircraft sale gains were a major contributor to the quarter’s earnings. Asset sales are expected to exceed $5 billion this year, supporting results but potentially making earnings less recurring than lease revenue.
• Neutral Sentiment: Dividend maintained: AerCap declared a quarterly dividend of $0.40 per share, or $1.60 annualized, with a roughly 1% yield. The payout provides modest shareholder income but is unlikely to be the primary near-term catalyst.

Wall Street Analyst Weigh In

AER has been the topic of a number of recent analyst reports. Weiss Ratings raised shares of AerCap from a “buy (b+)” rating to a “buy (a-)” rating in a report on Thursday, October 8th. Zacks Research cut AerCap from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 29th. Truist Financial increased their price target on shares of AerCap from $180.00 to $185.00 and gave the stock a “buy” rating in a research report on Thursday. TD Cowen lifted their target price on AerCap from $185.00 to $195.00 and gave the company a “buy” rating in a research report on Thursday. Finally, Citigroup raised their price objective on AerCap from $178.00 to $185.00 and gave the stock a “buy” rating in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, AerCap has an average rating of “Moderate Buy” and a consensus price target of $181.89.

About AerCap

AerCap Holdings N.V. is a global aviation leasing company headquartered in Dublin, Ireland, and listed on the New York Stock Exchange under the symbol AER. Through its subsidiaries, AerCap owns, manages and leases commercial aircraft, engines and helicopters to airlines and other aviation customers worldwide.

The company provides operating leases, finance leases, aircraft trading and asset management services. Its fleet portfolio includes aircraft from major manufacturers such as Airbus and Boeing, as well as engines and helicopters.