Aerospace stocks diverged on October 27, 2026, as Boeing shares fell more than 10% and GE Aerospace gained more than 3%. Both remained below their earlier highs amid concerns about aircraft demand and financing costs.

Key Takeaways

  • Boeing shares fell to a 52-week low after the company reported third-quarter results and outlined its longer-term cash-flow outlook.
  • GE Aerospace rose on Tuesday but remained 23% below its August 52-week high.
  • Both companies reported substantial commercial backlogs, although Boeing plans a slower production ramp for the 737 Max.

Aerospace stocks face demand concerns

Higher oil prices and interest rates have raised concerns about demand for new aircraft. Fuel costs can pressure airline profits, while higher rates make financing planes more expensive.

Despite Tuesday’s gain, GE Aerospace was down 3% for 2026 and 23% below its 52-week high of nearly $389, reached on August 6. Boeing’s Tuesday decline left its shares down 23% for the year.

For comparison, the iShares U.S. Aerospace & Defense ETF was down roughly 4% in 2026, while the S&P 500 was up more than 12.5%.

GE orders rise despite lower cash flow

GE Aerospace’s commercial aerospace orders rose 58% in the third quarter, including a 235% increase in equipment orders. Its backlog reached $170 billion.

Free cash flow fell 14% from a year earlier and was slightly below expectations. Investor and television host Jim Cramer said the order strength outweighed those concerns and expressed support for buying GE shares.

Boeing outlines slower production ramp

Boeing reported third-quarter free cash flow above expectations, but its multiyear free-cash-flow outlook fell short of expectations. Upfront spending on a contract to develop next-generation fighter jets for the U.S. Navy was among the factors behind the outlook.

Executives said Boeing would not significantly increase 737 Max production until late 2027. The company received 300 net commercial aircraft orders during the quarter, bringing its commercial backlog to more than 6,300 planes valued at a record $612 billion. Its defense backlog reached a record $101 billion.

Cramer was more cautious on Boeing, saying its shares could fall further, while remaining optimistic about its longer-term prospects if management delivers on its revised targets.

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