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GE Aerospace raises its 2026 outlook as service demand holds; two caveats matter
Orders rose 49% and commercial-engine services revenue increased 17%, but quarterly cash flow fell and the updated forecast implies softer fourth-quarter earnings.
GE Aerospace raised its 2026 guidance after third-quarter orders jumped 49% and adjusted revenue rose 18%. Commercial-engine maintenance, shop visits and spare-parts demand continued to support the business despite pressure on airlines from high fuel prices.
The headline upgrade comes with two qualifications: both operating cash flow and free cash flow fell 14% in the quarter, and the revised annual earnings range implies fourth-quarter adjusted earnings below the current analyst consensus.
The quarter combined faster orders with higher revenue
GE Aerospace reported $19.0 billion of third-quarter orders, up 49%. GAAP revenue rose 16% to $14.1 billion, while adjusted revenue increased 18% to $13.3 billion. GAAP profit rose 12% to $2.8 billion and adjusted earnings per share increased 36% to $2.25.
Commercial services remained the main operating engine
Commercial Engines & Services revenue grew 21% to $10.34 billion. Services revenue increased 17%, spare-parts revenue rose more than 20%, and the segment’s profit increased 21% to $2.89 billion. GE said engines waiting to enter its repair shops were up 20% from the start of the year, providing near-term demand even as high fuel prices pressure airlines.
The raised annual forecast still implies a softer fourth quarter
GE Aerospace lifted its 2026 adjusted earnings forecast to $8.00–$8.10 per share from $7.65–$7.85. Reuters calculated that the new range implies fourth-quarter adjusted earnings of about $1.87–$1.97 per share, below the $2.04 analyst consensus. That does not reverse the annual upgrade, but it explains why the guidance was received less enthusiastically than the headline increase alone might suggest.
Cash flow moved in the opposite direction from profit
Cash from operating activities and free cash flow each fell 14% in the quarter, to $2.2 billion and $2.0 billion respectively, even as adjusted operating profit rose 30%. The company presents adjusted revenue, operating profit, adjusted EPS and free cash flow as non-GAAP measures and provides reconciliations in its release.
Boeing deliveries improved, while GE9X carries a 2027 cost warning
GE delivered more than 50 GEnx engines to Boeing during the quarter and said recent engine shipments outpaced Boeing’s aircraft deliveries. Separately, GE expects higher GE9X deliveries for the delayed 777X to create about $300 million more profit headwind in 2027 than this year. The company still expects commercial-services revenue to grow at a low-double-digit rate in 2027, supported by a backlog of more than $170 billion.
