GE Aerospace raises 2026 guidance across the board as orders jump 49%

GE Aerospace raised every line of its 2026 forecast on Tuesday after third-quarter orders jumped 49% to $19.0 billion and adjusted earnings rose 36% to $2.25 a share, from $1.66 a year earlier.

Adjusted revenue grew 18% to $13.3 billion, while total GAAP revenue rose 16% to $14.1 billion, the company said in its earnings release filed with an 8-K. GAAP earnings per share from continuing operations rose 14% to $2.32 from $2.04.

Operating profit, a non-GAAP measure, climbed 30% to $3.0 billion, and the operating margin widened 220 basis points to 22.5%. Cash flow lagged: cash from operating activities fell 14% to $2.2 billion and free cash flow fell 14% to $2.0 billion.

Guidance moves up again

GE Aerospace now expects 2026 adjusted EPS of $8.00 to $8.10, up from $7.65 to $7.85. It raised operating profit guidance to $10.9 billion to $11.0 billion from $10.55 billion to $10.75 billion, and free cash flow to $9.1 billion to $9.4 billion from $8.9 billion to $9.2 billion. Adjusted revenue is now expected to grow about 19% to 20%, compared with a prior high-teens forecast.

"We are raising our 2026 guidance across the board, and we now expect 2027 commercial services to grow low-double-digits supported by our over $170 billion commercial services backlog," Chairman and CEO H. Lawrence Culp Jr. said.

Engines and services drive the quarter

Commercial Engines & Services did the heavy lifting. Orders in the segment rose 58% to $15.3 billion, with services orders up 23% and equipment orders more than tripling. Revenue grew 21% to $10.3 billion.

Services revenue rose 17%, including a 12% gain in internal shop visit revenue that the company said included LEAP growth of more than 40%. Spare parts revenue grew more than 20%. Equipment revenue jumped 38% as engine deliveries rose 8%, including a 5% increase in LEAP deliveries.

Segment profit rose 21% to $2.9 billion, though the margin slipped 10 basis points to 27.9% because of mix and inflation. GE Aerospace said it delivered GE9X engines in the quarter but will recognize their impact after midseal certification. It now expects the segment's 2026 operating profit at $10.5 billion to $10.6 billion, up from $10.25 billion to $10.35 billion.

Defense & Propulsion Technologies grew orders 18% to $4.3 billion and revenue 7% to $3.5 billion, with profit up 8% to $475 million. GE Aerospace kept that segment's 2026 outlook at low double-digit revenue growth and operating profit of $1.6 billion to $1.7 billion.

Recent deals

The company highlighted its agreement to acquire Consolidated Precision Products to expand castings capacity, an October agreement with Turkish Airlines for more than 300 LEAP-1B engines, and a contract worth up to $2.9 billion for ongoing support of F414 engines powering the U.S. Navy's F/A-18 and EA-18G fleets.

By the numbers

• Adjusted EPS: $2.25, vs. $1.66
• GAAP continuing EPS: $2.32, vs. $2.04
• Orders: $19.0 billion, up 49%
• Adjusted revenue: $13.3 billion, up 18%
• 2026 adjusted EPS guidance: $8.00 to $8.10
• 2026 free cash flow guidance: $9.1 billion to $9.4 billion

Sources

1. General Electric Company (operating as GE Aerospace), Form 8-K (Item 2.02) with Exhibit 99 earnings release for the third quarter of 2026, filed Oct. 20, 2026, accession 0000040545-26-000063

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