GE Aerospace earnings increased in the third quarter of 2026 as stronger commercial engine and services demand lifted revenue and profit. The company reported orders of $19.0 billion, up 49% from a year earlier, and raised its full-year guidance on October 20. GAAP revenue rose 16% to $14.1 billion for the quarter ended September 30.
Key Takeaways
- Adjusted earnings per share rose 36%, outpacing adjusted revenue growth of 18%.
- Commercial Engines & Services raised its annual profit outlook after quarterly revenue grew 21%.
- Cash generation weakened despite higher profit, with operating cash flow and free cash flow both down 14%.
Table of Contents
- GE Aerospace earnings grow faster than revenue
- Commercial services and equipment drive growth
- Commercial outlook rises as defense guidance holds
- Planned acquisition targets casting capacity
- Conclusion
GE Aerospace earnings grow faster than revenue
GE Aerospace’s third-quarter results announcement showed GAAP profit rising 12% to $2.8 billion. Non-GAAP operating profit increased 30% to $3.0 billion on adjusted revenue of $13.3 billion.
The distinction between reported and adjusted performance matters. GAAP profit margin narrowed by 80 basis points, while the non-GAAP operating profit margin expanded by 220 basis points to 22.5%. The company’s adjusted revenue measure excludes revenue from its run-off insurance operations.
Cash generation did not follow earnings higher. Both operating cash flow and non-GAAP free cash flow declined from a year earlier, providing a counterpoint to the stronger orders and profit figures.
| Item | Details |
|---|---|
| GAAP continuing earnings per share | $2.32; up 14% year over year |
| Adjusted earnings per share | $2.25; up 36% year over year; non-GAAP |
| GAAP profit margin | 19.9%; down 80 basis points year over year |
| Operating cash flow | $2.2 billion; down 14% year over year |
| Free cash flow | $2.0 billion; down 14% year over year; non-GAAP |
Commercial services and equipment drive growth
Commercial Engines & Services generated revenue of $10.3 billion, up 21%, and profit of $2.9 billion, also up 21%. Segment orders increased 58% to $15.3 billion, with services orders rising 23% and equipment orders more than tripling.
Services revenue grew 17%. Internal shop visit revenue increased 12%, reflecting higher volume and heavier maintenance work, while spare parts revenue grew more than 20%. Equipment revenue rose 38%, supported by an 8% increase in engine deliveries, including 5% growth in LEAP deliveries and growth in GEnx.
Higher services volume and pricing supported segment profit, although mix and inflation reduced its margin by 10 basis points. GE Aerospace delivered GE9X engines during the quarter but said the financial impact of those shipments would be recognized after midseal certification.
Commercial outlook rises as defense guidance holds
GE Aerospace raised its overall 2026 guidance, citing year-to-date performance and its fourth-quarter outlook. Within Commercial Engines & Services, it now expects annual revenue growth in the low-20% range, compared with approximately 20% previously.
The commercial segment’s non-GAAP operating profit forecast increased to $10.5 billion–$10.6 billion from $10.25 billion–$10.35 billion. Management attributed the revision to higher services growth and a reduced GE9X impact.
Defense & Propulsion Technologies reported revenue of $3.5 billion, up 7%, and profit of $475 million, up 8%. Orders rose 18% to $4.3 billion. Its annual outlook remained unchanged at low-double-digit revenue growth and operating profit of $1.6 billion–$1.7 billion.
Chairman and Chief Executive Officer H. Lawrence Culp Jr. also said the company expects commercial services to grow at a low-double-digit rate in 2027, supported by a commercial services backlog exceeding $170 billion. That is management’s forecast, rather than a reported result.
Planned acquisition targets casting capacity
GE Aerospace signed an agreement to acquire Consolidated Precision Products to expand capacity for mission-critical castings used in commercial engines, aftermarket services and defense. The transaction was announced as an agreement, not a completed acquisition.
The company also reported double-digit year-over-year growth in material input from priority suppliers. Year-to-date commercial services revenue and total engine deliveries were both up more than 20%, indicating that higher demand was accompanied by increased operational output.
Conclusion
Fourth-quarter execution will determine whether GE Aerospace delivers its raised 2026 outlook. The remaining reporting period will also show whether stronger commercial activity translates into improved cash generation after the third-quarter decline.
Read More News
Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
