GE bumped its adjusted earnings outlook to $8 to $8.10 a share, up from an earlier band of $7.65 to $7.85, while also raising its 2026 outlooks for adjusted revenue growth, operating profit, and free cash flow. The new math implies fourth-quarter profit below Wall Street forecasts, which likely helped knock the stock lower in early trading.
TD Cowen's Gautam Khanna called the outlook "likely conservative." The shares were weaker on the day, even after gaining about 1% year to date through Monday, compared with a 12% rise for the S&P 500 over the same stretch.
The company, which operates as GE Aerospace, says its Commercial Engines and Services unit is tracking "low 20s" revenue growth this year, and it sees commercial services growing at "low-double-digits" in 2027. Year to date, commercial services revenue is up 26%, and total engine deliveries have climbed 21%.
GE remains the biggest jet engine manufacturer globally and is riding strong demand for spare parts and maintenance work that keeps airline fleets in the air. That aftermarket has accelerated since the pandemic as travel rebounded. Since January 2024, GE has lifted its guidance on eight separate occasions.
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In September, GE struck a deal to buy Consolidated Precision Products in a transaction valued at nearly $12 billion, a move aimed at tightening control over more of its supply chain and adding specialized castings critical to aerospace and defense.
Commercial wins keep stacking up. GE signed a memorandum of understanding with IndiGo for more than 1,000 LEAP-1A engines that will be used to power 510 Airbus A320neo-family jets, the largest single order yet for engines manufactured by CFM International, the GE joint venture with Safran SA. It also announced GEnx-1B engine deals for 15 Boeing 787-10 aircraft with Philippine Airlines and for 15 Boeing 787 Dreamliners with AerCap Holdings NV.
Higher guidance is anchored by durable engine, parts, and services demand, plus new orders across Airbus and Boeing programs. Offsetting that, the near-term earnings setup is softer than the Street expected, which lined up with the early share-price drop.
One wild card is fuel. The US war with Iran and a subsequent spike in fuel prices have raised questions about airline momentum after carriers pared flying plans following US and Israeli strikes on Iran in February. Jet fuel costs have climbed again after easing over the summer. Several large US airlines report this week, offering another read on travel demand and costs.
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