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NewslettersCEO Daily

From near-collapse to $689 billion: Inside Larry Culp’s turnaround of GE

Shawn Tully
By
Shawn Tully
Shawn Tully
Senior Editor-at-Large
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Shawn Tully
By
Shawn Tully
Shawn Tully
Senior Editor-at-Large
Down Arrow Button Icon
July 24, 2026, 5:35 AM ET
Larry Culp, chief executive officer of General Electric Co., following a Bloomberg Television interview at the Farnborough International Airshow in Farnborough, UK, on Tuesday, July 21, 2026.
Larry Culp, chief executive officer of General Electric Co., following a Bloomberg Television interview at the Farnborough International Airshow in Farnborough, UK, on Tuesday, July 21, 2026. Betty Laura Zapata—Bloomberg via Getty Images
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  • In today’s CEO Daily: GE needed a miracle. Larry Culp performed one.
  • The big leadership story: Meet the oil services giant poised to cash in on a Middle East energy rebound
  • The markets: Tech and semiconductor shares are dragging down Asia markets
  • Plus: All the news and watercooler chat from Fortune.

Good morning. Shawn Tully writing from New York today. “I was sure GE was going to file for Chapter 11,” Nelson Peltz told me recently. “Then Larry arrived and performed the most amazing rescue I’ve ever read about or borne witness to.” 

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He’s talking, of course, about Larry Culp, who has performed one of the greatest rescues in modern business history. On Culp’s first day as CEO in 2018, GE’s market cap measured just $96 billion, down over 80% from its peak in September 2000. Today, the valuations of the three enterprises he created (GE Aerospace which he runs, GE Healthcare, and GE Vernova) total $689 billion. Combined, they’d rank as one of the top industrial companies in the U.S. by market value, second only to Tesla ($1.5 trillion), and 16th overall, edging the likes of Visa, J&J, and ExxonMobil. Since Culp arrived, the trio has garnered annualized returns of roughly 30%, twice the record for the S&P 500. 

I wanted to know how he did it. So he agreed to show me. And it did not surprise me one bit that he didn’t want to meet at GE Aerospace’s executive offices near Cincinnati. Instead, he wanted to do what he calls “go gemba,” a Japanese phrase for where the real work happens, on the factory floor. So Culp took me on a tour of the historic plant in Lynn, Mass. that manufactures engines for military aircraft, such as the F-16 fighter jet and Apache helicopters. Culp was totally in his element, attired in a GE polo shirt and steel-toed shoes, pointing out the rooms where the work crews unite each morning to turn “red” to “green” by finding ways to get crucial parts to a station that needs them. Flow charts and decks created in headquarters are more likely to mask what’s really going on. It’s by watching what happens right here on the factory floor that will tell you how well or poorly an enterprise really operates, Culp says. 

What impressed me most about Culp was his versatility and originality. Here is an extremely polished, articulate figure whom you can imagine smoothly making a case on tariffs to President Trump or testifying before the Senate, but who also enjoys great rapport with front-line workers. I was told that whenever he holds a ‘kaizen’ session at a plant, Culp spends time patiently explaining to union reps how he’s getting the productivity gains, and what they will mean for the workers—making the case that higher sales will eventually mean more jobs. 

A former Danaher manager who’s now a CEO recalls being astounded by his first encounter with Culp, back when he was running the company. At a week-long kaizen session at a plant in Saginaw, Michigan, he recalls Culp drawing lines on the floor with the sensei from Japan, and them moving machines from one station to another with the engineers and welders.  Says the former manager, “Every day he’d talk to the Teamster leaders, building a relationship with them. He wanted their buy-in.” It impressed upon the manager how important it is for a leader to roll up their sleeves, and demand that lieutenants do the same. 

Read the full story about how Culp pulled off this remarkable turnaround here. 

Contact CEO Daily via Diane Brady at diane.brady@fortune.com

Top leadership news

SLB, the century-old oilfield services giant, is positioned to be a top beneficiary of both the Middle East energy rebound and the AI data center boom

Founded in 1926, SLB has grown into the world's largest oilfield services firm, in part thanks to its willingness to stay in volatile areas. “They don’t leave countries when there’s a coup or a change in government or a conflict,” says James West, an analyst at Melius Research. The company’s now poised to be a winner as the sector rebounds from the closure of the Strait of Hormuz, which choked off nearly 20% of global oil supply. The company is also pivoting toward AI infrastructure, building modular data centers and power management systems for hyperscalers.

Mark Zuckerberg is leaning on nostalgia to reframe Meta's AI push amid growing public backlash

Meta CEO Mark Zuckerberg is leaning into the company’s early tech optimism, declaring “the future is for everyone” in a video released Thursday. Yet marketing professors tell Fortune that the imagery sidesteps real questions about how AI will affect Meta’s users. The social media giant is launching the campaign as it faces internal "gulag" complaints, a scrapped AI image feature, and a lawsuit over alleged AI targeting of employees on leave.

ServiceNow's strong earnings beat may finally be winning Wall Street over to CEO Bill McDermott's 'agentic AI' pitch

ServiceNow reported second-quarter subscription revenue of $3.88 billion, up 24.5% year-on-year, with AI products crossing $1 billion in annual contract value for the first time. The company also raised its full-year subscription guidance to $15.76-15.78 billion and beat earnings expectations. ServiceNow has been buffeted by fears of the ‘SaaSpocalypse,’ or that autonomous AI agents will undercut demand for enterprise software.

The markets

S&P 500 futures are up 0.3% this morning. The last session closed down 1.2%. Hong Kong’s Hang Seng dropped 1.0%, South Korea’s KOSPI fell 5.7%, Japan’s Nikkei 225 fell 2.7%, and Taiwan's TAIEX dropped 2.7%. Korean chipmakers Samsung and SK Hynix are down 7.6% and 8.3% respectively. India’s NIFTY 50 is down 0.4%, while the STOXX Europe 600 was up 0.5% in early trading. Bitcoin has slipped below $65,000.

Around the watercooler

Musk says frontier AI models should face peer review from rival labs before release, with the government only stepping in as a last resort by Marco Quiroz-Gutierrez

Trump dismissed affordability as a word ‘made up by the Democrats’ and promised oil would come ‘tumbling down’—then it hit $100 a barrel by Nick Lichtenberg

Despite Tokyo’s push for a 4-day week for better work-life balance, Japan’s prime minister boasts sleeping just ‘zero to three’ hours a night by Preston Fore

Saudi Arabia takes center stage as oil hits $100 and the Iran war escalates amid Houthi attacks and nuclear expansion by Jordan Blum

CEO Daily is curated and edited by Joseph Abrams, Jason Ma, Claire Zillman, and Lee Clifford.

This is the web version of CEO Daily, a newsletter of must-read global insights from CEOs and industry leaders. Sign up to get it delivered free to your inbox.
About the Author
Shawn Tully
By Shawn TullySenior Editor-at-Large

Shawn Tully is a senior editor-at-large at Fortune, covering the biggest trends in business, aviation, politics, and leadership.

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