GE Aerospace lifts guidance after 49% order growth and profit (NYSE: GE)

What happened

General Electric Company (NYSE: GE) said GE Aerospace raised 2026 guidance. Third-quarter revenue was $14.1 billion, up 16%. Total orders were $19.0 billion. Operating profit was $3.0 billion, and adjusted EPS was $2.25, up 36%.

Adjusted revenue was $13.3 billion, up 18%. Cash from operating activities was $2.2 billion and free cash flow was $2.0 billion. GAAP profit was $2.8 billion. GAAP profit margin was 19.9%, down 80 basis points.

Key numbers

Metric Latest Change Source
Total orders $19.0 billion +49% GE Aerospace third-quarter 2026 results
Total revenue $14.1 billion from $12.2 billion, +16% GE Aerospace third-quarter 2026 results
Adjusted revenue $13.3 billion from $11.3 billion, +18% GE Aerospace third-quarter 2026 results
Operating profit $3.0 billion from $2.3 billion, +30% GE Aerospace third-quarter 2026 results
Cash from operating activities $2.2 billion from $2.6 billion, -14% GE Aerospace third-quarter 2026 results

Read more: General Electric (GE) stock analysis and investment case

Why it matters

The filing backs OptimistFi's case that GE can create durable value through services growth and backlog. GE Aerospace said 2027 commercial services should grow low-double-digits, supported by more than $170 billion of commercial services backlog.

Year to date, commercial services revenue and total engine deliveries were both up over 20%. The company also said it recorded another quarter of record internal shop visit output.

The company said more than $3 billion a year in research and development continues to go into current and future technologies.

Commercial Engines Services had orders of $15.3 billion, up 58%, and revenue of $10.3 billion, up 21%. Defense Propulsion Technologies had orders of $4.3 billion, up 18%, revenue of $3.5 billion, up 7%, and operating profit of $475 million, up 8%.

In 2026, DPT still expects revenue growth of low double digits and operating profit of $1.6 billion to $1.7 billion. The company also said it signed a contract worth up to $2.9 billion to support the F414 engines powering the U.S. Navy's F/A-18 and EA-18G fleets.

Third-quarter revenue rose $1.94 billion from a year earlier. The main caution is that cash from operating activities and free cash flow both fell 14%. GAAP profit margin also slipped 80 basis points to 19.9%.

The release also gives two different 2026 operating profit ranges. The narrative shows $10.5 billion to $10.6 billion, while the table shows $10.9 billion to $11.0 billion.

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What's next

GE Aerospace said it will discuss the results on its investor conference call today starting at 7:30 a.m. ET. The next quarterly report will show whether services growth, backlog and cash conversion stay aligned.

A clearer operating profit range would help the case. Another quarter of weaker cash would hurt it.

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Sources

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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.