GE Aerospace raises EPS outlook to $8.00–8.10; shares fall

Key Facts

GE Aerospace raised its 2026 adjusted earnings per share outlook to $8.00–8.10, according to its third-quarter earnings presentation released on October 20, as it reported quarterly earnings that beat Wall Street estimates. The company had previously forecast adjusted earnings per share of $7.65 to $7.85 for the year. Third-quarter adjusted earnings per share reached $2.25, up 36% from the same period a year earlier, according to the earnings release. That compares with Wall Street estimates of $2.01 per share, according to figures cited by Reuters in its earnings coverage. Despite the results and higher annual outlook, the company's shares fell about 4% in early trading on October 20, according to Reuters.

GE Aerospace's total third-quarter orders reached $19.0 billion, according to the company's earnings release. Orders rose 49% from the same quarter a year earlier. The company reported revenue of $14.1 billion under U.S. accounting standards, up 16% year on year. Adjusted revenue reached $13.3 billion, up 18% from the same period a year earlier, according to the same release. Operating profit grew faster than revenue, rising 30% year on year to about $3.0 billion for the quarter.

The updated annual outlook included an increase in projected adjusted revenue growth to about 19–20% for 2026, according to the presentation accompanying the earnings announcement. The company's previous forecast called for adjusted revenue growth in the high teens for the year. GE Aerospace set its new annual operating profit range at $10.9 billion to $11.0 billion, alongside the increase in its earnings per share outlook. That compares with a previous operating profit range of $10.55 billion to $10.75 billion, according to the comparison in the earnings presentation. The company also forecast annual free cash flow of $9.1 billion to $9.4 billion as part of its updated annual financial outlook.

Third-quarter free cash flow was about $2.0 billion, according to GE Aerospace's earnings release. That represented a decline of 14% from the same period a year earlier, even as quarterly earnings rose. Operating working capital had a negative cash impact of $1,538 million during the quarter, according to financial details in the earnings presentation. The negative cash impact of that item was $441 million in the third quarter of 2025, according to the company's comparison. The group's operating margin rose to 22.5%, an improvement of 220 basis points year on year, according to the earnings release.

In the Commercial Engines & Services segment, equipment revenue rose 38% year on year, according to the investor relations update accompanying the results. Commercial engine deliveries increased 8% from the same quarter a year earlier, according to the same update. The increase included a 5% year-on-year rise in LEAP engine deliveries during the third quarter. Commercial spare parts revenue also grew more than 20% from the same period a year earlier, according to the company. As part of its productivity efforts, GE Aerospace said in the earnings presentation that turnaround time for LEAP engine work had fallen by about two weeks.

Looking to next year, the company expects higher GE9X engine deliveries to put an additional $300 million of pressure on 2027 earnings compared with 2026, according to Reuters. On acquisitions, GE Aerospace's chief executive said the deal to buy CPP aims to "expand production capacity and improve performance," according to the deal announcement. The company expects to complete the acquisition in the second half of 2027, according to the timeline in the announcement. Completion remains subject to regulatory approvals and customary closing conditions, according to GE Aerospace. Before then, the company has scheduled its fourth-quarter 2026 earnings announcement for January 21, 2027, according to the earnings presentation.