GE Aerospace Beats Q3 Forecasts and Raises 2026 Guidance Again

GE Aerospace beat Wall Street forecasts for the third quarter on Tuesday and raised its 2026 guidance across the board, as airlines kept paying for engine maintenance and spare parts even while higher fuel costs squeeze their own budgets.

Adjusted earnings came in at $2.25 a share, ahead of the $2.01 analysts expected, according to FactSet figures reported by Dow Jones. Total revenue rose 16 percent to $14.12 billion, above the $12.88 billion forecast. Profit from continuing operations was $2.41 billion, or $2.32 a share, up from $2.17 billion, or $2.04 a share, a year earlier.

Orders did the heavy lifting. New orders rose 49 percent to $19.0 billion in the quarter. Revenue at the commercial engines and services unit, the heart of the business, jumped 21 percent to about $10.3 billion, while the defense and propulsion business grew sales 6.7 percent.

The new guidance

GE now expects adjusted earnings of $8.00 to $8.10 a share for 2026, up from its earlier range of $7.65 to $7.85. It raised its operating profit forecast to $10.9 billion to $11.0 billion, from $10.55 billion to $10.75 billion, and its free cash flow forecast to $9.1 billion to $9.4 billion, from $8.9 billion to $9.2 billion. The company also lifted its adjusted revenue growth outlook to 19 to 20 percent.

Looking further out, chief executive Larry Culp said the company expects commercial services revenue to grow at a low double-digit rate in 2027, backed by a commercial services backlog above $170 billion. "We are raising our 2026 guidance across the board," Culp said in the results statement.

Why it matters

GE makes and services engines for a large share of the world's passenger jets, including through CFM International, its joint venture with Safran of France. Parts and services bring in more than 70 percent of its commercial engine revenue, which means the company earns most of its money keeping planes already flying in the air, not just selling new engines.

That model is being tested this year. Reuters reported that airlines worldwide are cutting costs and capacity to defend ticket prices after the war in Iran disrupted oil shipping routes and pushed jet fuel costs up. Fewer flights would normally mean less wear on engines and less maintenance work. GE has argued the hit should be limited this year because much of its 2026 shop visit work is already under contract and demand for spare parts still outruns supply. Finance chief Rahul Ghai said last month the company had seen no changes to airlines' fleet plans, and the number of parked aircraft stayed low.

Key numbers

Adjusted earnings per share: $2.25, against $2.01 expected. Total revenue: $14.12 billion, up 16 percent. Orders: $19.0 billion, up 49 percent. Commercial services backlog: above $170 billion. New 2026 guidance: $8.00 to $8.10 a share in adjusted earnings, $10.9 billion to $11.0 billion in operating profit, and $9.1 billion to $9.4 billion in free cash flow.

One figure ran the other way. Quarterly free cash flow fell about 14 percent to roughly $2.04 billion, a reminder that turning record orders into delivered engines and collected cash is the harder half of the job.

What happens next

Investors will watch whether airlines start deferring shop visits if fuel stays expensive into 2027, and whether GE can work through its backlog as engine deliveries recover. The 2027 services outlook, low double-digit growth on a backlog above $170 billion, gives the company a long runway. The risk sits with the airlines paying the bills.