GE Aerospace earnings increased in the third quarter of 2026, and the aircraft-engine maker raised its full-year outlook as commercial services demand and engine deliveries strengthened. Results released on October 20 showed GAAP revenue rising 16% to $14.1 billion, while operating cash flow fell 14%.
Key Takeaways
- Adjusted earnings per share rose 36%, outpacing revenue growth.
- Orders increased 49%, supported by commercial services and equipment demand.
- GE Aerospace raised its 2026 outlook despite lower quarterly cash generation.
Table of Contents
- GE Aerospace earnings show stronger profit but lower cash flow
- Commercial services and equipment drive demand
- Higher guidance sets the fourth-quarter benchmark
- Conclusion
GE Aerospace earnings show stronger profit but lower cash flow
For the quarter ended September 30, GAAP profit increased 12% to $2.8 billion, while continuing earnings per share rose 14% to $2.32. Adjusted earnings per share increased faster, reaching $2.25, up 36% from a year earlier.
The company’s third-quarter 2026 earnings announcement distinguishes GAAP revenue growth of 16% from adjusted revenue growth of 18%. Adjusted revenue excludes the effect of run-off insurance operations, so the two measures describe different reporting bases.
Profitability also diverged by measure. GAAP profit margin fell 80 basis points to 19.9%, while non-GAAP operating profit margin expanded 220 basis points to 22.5%. Stronger adjusted earnings did not translate into higher quarterly cash generation: both operating cash flow and free cash flow declined.
| Item | Details |
|---|---|
| Reporting period | Third quarter ended September 30, 2026; results released October 20. |
| Adjusted revenue | $13.3 billion, up 18% year over year; a non-GAAP measure. |
| Operating profit | $3.0 billion, up 30%; a non-GAAP measure. |
| Operating cash flow | $2.2 billion, down 14% year over year. |
| Free cash flow | $2.0 billion, down 14%; a non-GAAP measure. |
Commercial services and equipment drive demand
Total orders reached $19.0 billion. Within Commercial Engines & Services, orders increased 58% to $15.3 billion, with services orders rising 23% and equipment orders more than tripling.
The commercial segment’s revenue grew 21% to $10.3 billion. Services revenue increased 17%, supported by higher shop-visit volume, heavier maintenance work and spare-parts demand. Equipment revenue rose 38%, while engine deliveries increased 8%.
Commercial segment profit rose 21% to $2.9 billion, although its margin slipped 10 basis points as mix and inflation offset part of the benefit from higher services volume and pricing. Defense & Propulsion Technologies revenue grew 7% to $3.5 billion, with profit increasing 8% to $475 million.
Higher guidance sets the fourth-quarter benchmark
GE Aerospace raised its total-company 2026 guidance. For Commercial Engines & Services, it now expects revenue growth in the low-20% range, compared with approximately 20% previously. The segment’s operating profit forecast increased to $10.5 billion–$10.6 billion from $10.25 billion–$10.35 billion.
Defense & Propulsion Technologies retained its outlook for low-double-digit revenue growth and operating profit of $1.6 billion–$1.7 billion.
Chairman and Chief Executive H. Lawrence Culp Jr. also said the company expects commercial services growth in the low-double-digit range in 2027, supported by a commercial services backlog exceeding $170 billion. That remains management guidance, rather than a reported result.
Conclusion
The fourth quarter will test delivery against GE Aerospace’s raised 2026 outlook. Commercial services growth, engine output and cash generation provide distinct measures of that execution, particularly after quarterly cash flow declined despite stronger earnings.
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