GE Aerospace Raises Full-Year Profit and Earnings Outlook

The Tip Desk · October 27, 2026 · 4 min read

Third-quarter operating profit reached $3.0 billion, up 30%, as the company lifted 2026 adjusted EPS guidance to $8.00–$8.10.

GE Aerospace (GE) raised its full-year 2026 guidance for operating profit, adjusted EPS and free cash flow after third-quarter operating profit of $3.0 billion, up 30% from a year earlier, reversing a 130-basis-point year-on-year decline in operating margin in the second quarter.

The company now expects 2026 operating profit of $10.9 billion to $11.0 billion, versus a prior range of $10.55 billion to $10.75 billion, and an operating profit margin of 21.4%. Adjusted earnings guidance moved to $8.00 to $8.10 a share from $7.65 to $7.85. Free cash flow is now seen at $9.1 billion to $9.4 billion, from $8.9 billion to $9.2 billion, with conversion still above 100%. Adjusted revenue growth is now expected at about 19% to 20%, down from prior guidance of more than 21%.

Chairman and CEO H. Lawrence Culp, Jr., said solid demand drove orders up 49%, with commercial services up 23%, adjusted revenue up 18% and EPS up 36%. He said the company is raising 2026 guidance across the board and now expects 2027 commercial services to grow low-double-digits, supported by an over $170 billion commercial services backlog.

Total orders were $19.0 billion, up 49% from a year earlier, after a 17% increase in the second quarter. GAAP revenue was $14.1 billion, up 16%, slowing from 21% growth in the prior quarter. Adjusted revenue was $13.3 billion, up 18%, after 24% growth in the second quarter. GAAP profit was $2.8 billion, up 12%. Continuing EPS was $2.32, up 14%. Adjusted EPS was $2.25, up 36%, accelerating from 22% growth in the second quarter. Operating profit margin was 22.5%, up 220 basis points year on year.

Cash from operating activities was $2.2 billion, down 14% from a year earlier, after a 39% increase in the second quarter. Free cash flow was $2.0 billion, down 14%, after a 43% rise in the prior quarter.

Commercial Engines & Services, the larger of the two reportable segments, posted orders of $15.3 billion, up 58%, with services up 23% and equipment more than tripling. Revenue was $10.3 billion, up 21%. Services grew 17%, with internal shop visit revenue up 12% from higher volume, including LEAP up over 40%, and heavier workscope; spare parts revenue grew over 20%. Equipment revenue grew 38%, driven by engine deliveries up 8%, including LEAP up 5%, and GEnx growth. The company said it delivered GE9X engines in the quarter, with the impact from those shipments to be recognized after midseal certification. Profit was $2.9 billion, up 21% from higher services volume and price. The segment margin contracted 10 basis points from mix and inflation.

For 2026, CES now expects revenue growth in the low 20s, up from a prior guide of about 20%, with services at the higher end of a prior low-20s range and equipment in the low 20s, up from about 20%. Operating profit is expected at $10.5 billion to $10.6 billion, up from $10.25 billion to $10.35 billion, on higher services growth and reduced GE9X impact.

Defense & Propulsion Technologies orders were $4.3 billion, up 18%. Revenue was $3.5 billion, up 7%. Defense & Systems revenue was up 5%, with engine deliveries up 4%. Propulsion & Additive Technologies revenue increased 10%, driven by Avio Aero and Unison. Profit was $475 million, up 8%, and the margin rose 20 basis points from increased volume and price, partially offset by mix and inflation. DPT continues to expect 2026 revenue growth of low double digits and operating profit of $1.6 billion to $1.7 billion.

Culp said increased material input from priority suppliers rose double-digits year-over-year, contributing to year-to-date CES services revenue and total engine deliveries, including LEAP growing 26%. The company announced commitments for more than 1,800 engines at Farnborough, including the largest LEAP agreement ever for more than 1,000 LEAP-1A engines with IndiGo, and in October signed an agreement with Turkish Airlines for more than 300 LEAP-1B engines plus a long-term services agreement covering its entire LEAP-1B fleet of over 600 engines. In Defense, it signed a contract worth up to $2.9 billion to support the F414 engines powering the U.S. Navy’s F/A-18 and EA-18G fleets.

GE Aerospace also signed an agreement to acquire Consolidated Precision Products to expand mission-critical castings capacity for commercial engines, aftermarket and defense. Culp said the company is continuing to invest in customers’ needs with that CPP agreement and over $3 billion in annual R&D.