The GE Aerospace outlook improved on October 20, 2026, as the aircraft-engine maker raised its full-year guidance after reporting third-quarter adjusted revenue of $13.3 billion. Management also forecast low-double-digit commercial services growth in 2027, supported by a commercial services backlog exceeding $170 billion.
Key Takeaways
- Third-quarter adjusted revenue rose 18%, while total orders increased 49% to $19.0 billion.
- The company raised its 2026 financial targets; its 2027 forecast specifically concerns commercial services growth.
- Adjusted earnings increased 36%, but quarterly operating cash flow and free cash flow both fell 14%.
Table of Contents
- GE Aerospace outlook separates 2026 targets from 2027 expectations
- Commercial engines and maintenance drive quarterly growth
- Higher adjusted profit contrasts with weaker quarterly cash flow
- Conclusion
GE Aerospace outlook separates 2026 targets from 2027 expectations
GE Aerospace’s third-quarter 2026 earnings filing sets out higher annual targets for adjusted revenue growth, operating profit, adjusted earnings per share and free cash flow. The across-the-board guidance increase applies to 2026, not to the company’s entire 2027 financial outlook.
Chairman and Chief Executive H. Lawrence Culp Jr. said management expects commercial services to grow at a low-double-digit rate in 2027. He cited the more than $170 billion commercial services backlog as support for that expectation. The backlog is specific to commercial services rather than the company’s total outstanding business.
For 2026, Commercial Engines & Services now expects revenue growth in the low 20% range, compared with approximately 20% previously. Its operating profit forecast increased to $10.5 billion–$10.6 billion from $10.25 billion–$10.35 billion.
| Item | Details |
|---|---|
| 2026 adjusted revenue growth guidance | Raised to approximately 19%–20% from high teens. |
| 2026 non-GAAP operating profit guidance | Raised to $10.9 billion–$11.0 billion from $10.55 billion–$10.75 billion. |
| 2026 adjusted EPS guidance | Raised to $8.00–$8.10 from $7.65–$7.85. |
| 2026 non-GAAP free cash flow guidance | Raised to $9.1 billion–$9.4 billion from $8.9 billion–$9.2 billion. |
Commercial engines and maintenance drive quarterly growth
For the quarter ended September 30, adjusted revenue increased 18% to $13.3 billion, above the supplied analyst estimate of $12.88 billion. GAAP revenue, a separate measure that includes run-off insurance operations, rose 16% to $14.1 billion.
Commercial Engines & Services revenue increased 21% to $10.3 billion. Services revenue grew 17%, with internal shop visit revenue up 12% and spare-parts revenue rising more than 20%. Equipment revenue increased 38%, supported by an 8% increase in engine deliveries.
The segment’s orders rose 58% to $15.3 billion, with services orders increasing 23% and equipment orders more than tripling. Those commitments represent future business rather than revenue already recognized.
Defense & Propulsion Technologies also expanded, though more slowly: revenue increased 7% to $3.5 billion and profit rose 8% to $475 million.
Higher adjusted profit contrasts with weaker quarterly cash flow
Adjusted earnings per share rose 36% to $2.25, while GAAP earnings per share from continuing operations increased 14% to $2.32. Non-GAAP operating profit reached approximately $3.0 billion, up 30%, and operating margin widened by 220 basis points to 22.5%.
The GAAP comparison was less strong: profit rose 12% to $2.8 billion, but profit margin declined 80 basis points to 19.9%. The different margin trends underline the importance of keeping reported and adjusted measures separate.
Cash generation also diverged from earnings growth. Operating cash flow fell 14% to $2.2 billion and non-GAAP free cash flow declined 14% to $2.0 billion. Over the first nine months, however, those measures increased 14% and 13%, respectively.
Conclusion
Fourth-quarter execution will determine whether GE Aerospace meets its higher 2026 targets. The next results will also provide a clearer comparison between earnings growth and cash generation as management works toward its 2027 commercial services forecast.
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