GE Aerospace Orders Jump 49% as Q3 Beat Triggers Across-the-Board Guidance Raise
Adjusted EPS grew 36% and orders surged to $19 billion as commercial services demand accelerated, pushing GE Aerospace to raise its full-year profit, EPS, and free cash flow targets for the second straight quarter.
What Happened
GE Aerospace reported third-quarter 2026 adjusted earnings per share of $2.25, up 36% year over year and well above the roughly $1.99 analyst consensus, on adjusted revenue of $13.3 billion, up 18% and ahead of the roughly $12.8 billion Street estimate. GAAP continuing EPS came in at $2.32 (+14%) on GAAP revenue of $14.1 billion (+16%). The standout number was orders, which jumped 49% to $19.0 billion, with services orders up 23% and equipment orders more than tripling — a sign that airlines and lessors are locking in capacity well ahead of delivery.
By segment, Commercial Engines & Services (CES) revenue rose 21% to $10.3 billion with operating profit up 21% to $2.9 billion, as internal shop-visit revenue climbed 12% (LEAP shop visits up over 40%) and spare-parts revenue grew more than 20%. Defense & Propulsion Technologies (DPT) revenue grew a more modest 7% to $3.5 billion with profit up 8% to $475 million. Free cash flow of $2.0 billion was down 14% year over year, and operating cash flow fell 14% to $2.2 billion — the one soft spot in an otherwise strong print, though the company did not attribute it to any underlying demand issue.
CEO H. Lawrence Culp, Jr. said the company delivered “strong results this quarter as solid demand drove orders up 49%, with strength in commercial services up 23%, total revenue up 18% and EPS up 36%,” adding that GE Aerospace now expects 2027 commercial services revenue to grow low-double-digits, supported by a commercial services backlog that has swelled past $170 billion. The company is raising full-year 2026 guidance across every major metric: adjusted revenue growth to roughly 19–20% (from high-teens), operating profit to $10.9–$11.0 billion (from $10.55–$10.75 billion), adjusted EPS to $8.00–$8.10 (from $7.65–$7.85), and free cash flow to $9.1–$9.4 billion (from $8.9–$9.2 billion). It’s the second consecutive quarter GE Aerospace has raised its outlook.
The company also disclosed an agreement to acquire Consolidated Precision Products (CPP) to expand mission-critical castings capacity, and said it signed a long-term services agreement with Turkish Airlines covering its entire 600-plus-engine LEAP-1B fleet, on top of commitments for more than 1,800 engines announced at the Farnborough Airshow this year — including the largest LEAP agreement ever, a 1,000-plus engine order from IndiGo.
Analyst Reaction
Formal sell-side notes reacting to today’s print were still being published as of this writing. Heading into the quarter, GE Aerospace carried one of the more bullish analyst setups among industrials, with a consensus rating near Buy/Strong Buy and price targets that had already been raised repeatedly through 2026 on the strength of the commercial services backlog and LEAP engine ramp. A beat of this size — a 36% adjusted EPS beat margin against consensus, paired with a second straight guidance raise — is the kind of print that typically draws further price-target increases rather than downgrades; watch for updated targets from GE Aerospace’s regular coverage (Morgan Stanley, Citi, RBC, Vertical Research, and others) over the next several trading sessions.
Why It Matters
GE Aerospace’s quarter adds to a busy week of industrial and defense earnings, including fellow Dow components reporting the same week. The $170 billion-plus commercial services backlog and accelerating LEAP shop-visit volume echo the broader aerospace supply-chain tightness discussed in Asia’s defense boom is rewiring the global arms supply chain and our look at whether the defense tech boom has become a bubble. For the full slate of what’s reporting this week, see the Corporate Earnings This Week calendar on our homepage.
- The defense tech boom has become a bubble—or it will be soon
- Asia’s defense boom is rewiring the global arms supply chain
- Stock Fact Sheets Hub
- Earnings coverage
This article is for informational purposes only and does not constitute investment advice. Analyst estimates, price targets, and market figures are as of the date noted above and subject to change; consult a licensed financial advisor before making investment decisions.
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