Retained earnings is the accumulated portion of net income that is not distributed to shareholders. BAE Systems's retained earnings for the quarter that ended in Dec. 2025 was $6,119 Mil.
BAE Systems's quarterly retained earnings
increased
from Dec. 2024 ($4,850 Mil) to Jun. 2025 ($5,239 Mil) and
increased
from Jun. 2025 ($5,239 Mil) to Dec. 2025 ($6,119 Mil).
BAE Systems's annual retained earnings
increased
from Dec. 2023 ($3,572 Mil) to Dec. 2024 ($4,850 Mil) and
increased
from Dec. 2024 ($4,850 Mil) to Dec. 2025 ($6,119 Mil).
BAE Systems (OTCPK:BAESY) Retained Earnings Explanation
Historically profitable companies sometimes have negative retained earnings. This is because they have cumulatively paid out more to shareholders than they reported in profits.
For example, in 2011, Microsoft had negative retained earnings. This does not mean the company lost more money than it made over the years. It just means it paid out more money than it earned.
If a company has negative retained earnings, investors should check the 10-year financial results. They should not assume that negative retained earnings prove a company has generally lost money in the past.
Of course, many companies with negative retained earnings have indeed lost money in the past.
Retained Earnings: Warren Buffett's Secret.
One of the most important indicators of durable competitive advantage. Net earnings can be paid out as dividends, used to buy back shares or retained for growth.
If the company loses more than it has accumulated, retained earnings is negative.
If a company isn't adding to its retained earnings, it isn't growing its net worth.
Rate of growth of retained earnings is good indicator whether it's benefiting from a competitive advantage.
Microsoft is negative because it chose to buyback stock and pay dividends.
The more earnings retained, the faster it grows and increases growth rate for future earnings.
BAE Systems Retained Earnings Historical Data
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The historical data trend for BAE Systems's Retained Earnings can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Retained Earnings is the accumulated portion of net income that is not distributed to shareholders. Because the net income was not distributed to shareholders, shareholders' equity is increased by the same amount.
Of course, if a company loses, it is called retained losses, or accumulated losses.
BAE Systems (BAESY) has a Retained Earnings of $6,119 Mil as of Dec. 2025. Retained earnings is the amount of net income not issued to shareholders. View historical data on BAE Systems and its competitors.
Is BAE Systems' Retained Earnings too high?
BAE Systems' current Retained Earnings is $6,119 Mil. Overall, BAE Systems has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' Retained Earnings compare to SPCX and GE?
BAE Systems' Retained Earnings of $6,119 Mil can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Retained Earnings for an Aerospace & Defense company?
A good Retained Earnings depends on the Aerospace & Defense industry context. However, Retained Earnings should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Retained Earnings mean?
A high Retained Earnings can signal that a stock is expensive relative to its fundamentals. Retained earnings is the amount of net income not issued to shareholders. View historical data on BAE Systems and its competitors. BAE Systems's current Retained Earnings is $6,119 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAE Systems stock overvalued right now?
Based on GuruFocus' analysis, BAE Systems (BAESY) is currently considered Fairly Valued. The stock's GF Value™ is $92.00, compared to a current price of $99.94 — trading 8.6% above its estimated fair value. The current Retained Earnings is $6,119 Mil. BAE Systems' overall GF Score™ is 90/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Retained Earnings calculated?
Retained Earnings is calculated from a company's financial statements. For BAE Systems (BAESY), the current Retained Earnings is $6,119 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is BAE Systems (BAESY) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of $99.94 is trading 8.6% above its estimated GF Value™ of $92.00.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for BAESY:
Retained Earnings: $6,119 Mil
GF Value™: $92.00 vs. price of $99.94 (8.6% above fair value)
No single metric tells the full story. See the BAESY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's US- and UK-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the US government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the US Defense Department; the air segment includes BAE's share of US and European air programs as well as its businesses in Saudi Arabia and Australia, and the maritime segment comprises UK land- and marine-based activities.
90GF Score
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Retained Earnings is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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