GE Aerospace (GE) Earnings Date & Reports

Key Takeaways

• Adjusted earnings per share (EPS) rose 36% year over year to $2.25, topping the consensus estimate of roughly $2.02.
• Adjusted revenue grew 18% to $13.29 billion, above analyst expectations of about $12.65 billion.
• Total orders jumped 49% to $18.99 billion, driven by a 58% surge in commercial engine orders.
• Adjusted operating profit climbed 30% to $2.99 billion, with margins expanding 220 basis points to 22.5%.
• Management raised full-year 2026 guidance for revenue, operating profit, EPS, and free cash flow.
• Quarterly free cash flow fell 14% to $2.04 billion, though nine-month free cash flow rose 13%.

Earnings Context and Why It Matters

GE Aerospace (formerly General Electric) has evolved into a focused aviation powerhouse after spinning off its healthcare and energy businesses, making its quarterly results a closely watched barometer of global air travel and defense spending. This third-quarter report matters because it reveals whether demand for commercial jet engines, spare parts, and maintenance services remains robust, and whether the company can sustain profitability as it ramps up production of next-generation engines like the LEAP and GE9X. With a backlog exceeding $170 billion, GE Aerospace's results offer investors a window into multi-year revenue visibility, while also testing the company's ability to manage supply chain pressures and convert earnings into cash.

Reported Results

For the third quarter ended September 30, 2026, GE Aerospace delivered adjusted EPS of $2.25, up 36% from $1.66 a year earlier and above the consensus estimate of approximately $2.02. Adjusted revenue rose 18% to $13.29 billion, beating expectations of roughly $12.65 billion, while total reported (GAAP) revenue reached $14.12 billion, up 16%.

Adjusted operating profit increased 30% to $2.99 billion, and adjusted operating margin expanded 220 basis points to 22.5%. Total orders climbed 49% to $18.99 billion. Within the segments, Commercial Engines & Services (CES) revenue grew 21% to $10.34 billion, with segment profit up 21% to $2.89 billion. Defense & Propulsion Technologies (DPT) revenue rose 7% to $3.47 billion, with segment profit up 8% to $475 million.

Third-quarter free cash flow declined 14% to $2.04 billion, but nine-month free cash flow increased 13% to $6.73 billion. Reflecting the strong performance, the company raised its full-year outlook across the board, including adjusted EPS guidance of $8.00 to $8.10 and free cash flow of $9.1 billion to $9.4 billion.

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Market Reaction and Investor Sentiment

The third-quarter report was broadly well received, as results came in ahead of consensus on both the top and bottom lines and management raised full-year guidance. The 49% increase in total orders, led by a 58% jump in commercial engine orders, reinforced confidence in sustained demand across commercial aviation. Investors focused on the sixth consecutive quarter of at least 20% growth in the CES segment and the expansion of adjusted operating margins. At the same time, attention remained on the 14% decline in quarterly free cash flow, which reflected timing factors rather than a weakening of underlying cash generation, given that nine-month free cash flow still rose 13%. Overall, sentiment heading into the print was positive, and the raised outlook supported that tone.

Forward Outlook and Key Factors to Monitor

Following the strong quarter, GE Aerospace enters the final months of 2026 with raised expectations. Management now projects full-year adjusted revenue growth of roughly 19% to 20%, up from a prior "high teens" forecast, alongside adjusted operating profit of $10.9 billion to $11.0 billion and adjusted EPS of $8.00 to $8.10.

Several factors will shape the near-term narrative. First, investors should watch the certification timeline for the GE9X engine, where the company continues to deliver units to Boeing but does not expect FAA approval until late 2026. Second, spare parts delinquency has increased sequentially despite improved material availability, signaling ongoing supply chain constraints that could affect aftermarket revenue. Third, the retirement rate of older CFM56 engines has trended lower than expected, which could influence long-term service demand.

On the positive side, a backlog above $170 billion and rising services orders provide strong multi-year visibility. Cost trends, inflation, and the pace of engine deliveries will also remain central to whether the company can sustain margin expansion and convert earnings into free cash flow as efficiently as it has year to date.

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