GE Aerospace Earnings Beat and Guidance Raised

GE Aerospace earnings on Oct. 20, 2026 showed a stronger quarter and lifted its 2026 outlook, but a drop in quarterly cash generation and engine-related margin pressure raised investor questions about the durability of aftermarket profit gains.

Quarterly Results and Outlook

For the quarter ended Sept. 30, 2026, GE Aerospace reported GAAP revenue of $14.1 billion, adjusted revenue of $13.3 billion, and adjusted earnings per share (EPS) of $2.25. Total orders reached $19.0 billion, up 49.0% year over year. GAAP profit was $2.8 billion, and adjusted operating profit was $3.0 billion. Defense & Propulsion Technologies revenue rose about 7.0% to $3.5 billion, with quarterly orders of $4.3 billion, up 18.0%.

The company raised full-year 2026 guidance for adjusted EPS to $8.00–$8.10, revenue growth to roughly 19.0%–20.0%, operating profit to $10.9–$11.0 billion, and free cash flow (FCF) to $9.1–$9.4 billion. That adjusted EPS topped Street estimates near $2.00–$2.01, and adjusted revenue exceeded consensus in the $12.85–$12.88 billion range. “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,” said H. Lawrence Culp Jr., chairman and chief executive.

Engine Margins and Cash Flow

Commercial Engines & Services drove the quarter’s growth with revenue rising 21.0% to $10.3 billion. Services revenue increased about 17.0%, and spare-parts sales grew more than 20.0%. The company attributed this strength to higher internal shop visits with heavier work scopes, increased spare-parts volumes, engine deliveries, and pricing gains. Operating profit for the segment rose 21.0% to $2.89 billion, even as the operating margin narrowed by 10 basis points to 27.9%, affected by mix, inflation, and GE9X-related factors.

Operating cash flow was $2.2 billion and free cash flow was $2.0 billion, each down 14.0% year over year. The company offset this near-term shortfall by raising its full-year free cash flow outlook. Management said the Middle East conflict had not materially affected operations through Sept. 30, 2026, but warned that sustained high fuel prices could reduce airline flying and weaken demand for repairs, spare parts, and spare engines.

The results and raised guidance indicate continued aftermarket strength, but the quarterly decline in cash generation and the GE9X-linked margin squeeze make near-term cash-flow execution and margin recovery critical to sustaining the upgraded outlook.