GE Aerospace (1GE) Q3 2026 Earnings Report
IT:1GE Q3 2026 EPS Results
- Actual EPS
- EUR 2.00
- Consensus EPS
- EUR 1.79
- Beat/Miss
- Beat by +EUR 0.22
- One Year Ago EPS
- EUR 1.48
IT:1GE Q3 2026 Revenue Results
- Actual Revenue
- EUR 12.58B
- Expected Revenue
- EUR 11.48B
- Beat/Miss
- Beat by +EUR 1.11B
- YoY Revenue Growth
- +15.90%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/20/2026
- Time
- Before Open
- Conference Call
- Tuesday, October 20, 2026
IT:1GE Upcoming Earnings
GE Aerospace's next earnings date is estimated for January 21, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
IT:1GE Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly optimistic, with significant growth in orders, revenue, profit, EPS, free cash flow, services demand, engine deliveries, backlog, and defense activity. Management raised 2026 guidance and provided a low double-digit commercial services growth outlook for 2027. The main challenges discussed were inflation, working capital use, increased spare-parts delinquency, supply-chain constraints, airline fuel pressures, and the pending GE9X certification and related 2027 profit headwind. Overall, the positive operating and financial trends significantly outweighed the identified challenges.
Company Guidance
For 2026, GE Aerospace raised guidance to revenue growth of 19%-20%, CES growth of low 20s, commercial equipment growth of low 20s, and DPT growth of low double digits; commercial services is expected to deliver approximately $5.5 billion of year-over-year revenue growth, up approximately $400 million at the midpoint from the prior expectation. Operating profit is expected to be $10.9 billion-$11 billion, CES operating profit $10.5 billion-$10.6 billion, DPT profit $1.6 billion-$1.7 billion, corporate costs and eliminations toward the lower end of the $1.2 billion-$1.3 billion range, EPS $8-$8.10, with a tax rate of around 16%, and free cash flow $9.1 billion-$9.4 billion with above 100% conversion; GE expects around $1.9 billion of profit growth and $1.6 billion of free cash flow growth. For 2027, GE expects low double-digit commercial services growth, with the commercial install base growing low to mid-single digits annually, DPT revenue growth of high single digits, services revenue growth of about $3.5 billion-$4 billion, services margins flat, and a 9X headwind of about another $300 million year-over-year, while 2027 margins should stay in line with 2026.
- Strong Third-Quarter Financial PerformanceTotal company revenue increased 18%, operating profit grew 30% to $3 billion, operating margins expanded 220 basis points to 22.5%, EPS increased 36% to $2.25, and free cash flow was $2 billion.
- Robust Order Growth and BacklogThird-quarter orders increased 49%, led by Commercial Engines and Services (CES), up 58%. Year-to-date orders were also up 49%, and the company ended the quarter with a backlog of more than $170 billion.
- Commercial Services MomentumCommercial services orders increased 23% in the quarter and 30% year-to-date. CES revenue rose 21%, services revenue increased 17%, spare parts revenue increased over 20%, and the company reported its sixth consecutive quarter of at least 20% CES revenue growth.
- Commercial Equipment and Engine Delivery GrowthCES equipment revenue grew 38%, engine deliveries increased 8%, and LEAP deliveries rose 5% in the quarter. The company achieved its fifth consecutive quarter of at least 500 LEAP engine deliveries, while wide-body engine deliveries increased over 50% and GEnx shipments nearly doubled.
- Year-to-Date Progress and Cash ConversionYear-to-date revenue increased 23%, EPS grew 28%, operating profit increased by $1.5 billion, and free cash flow rose 13% to $6.7 billion. Free cash flow conversion was 105%, supported by higher earnings and a meaningful reduction in inventory growth.
- Flight Deck Operational ImprovementsFlight Deck initiatives contributed to commercial services revenue growth of 26% year-to-date and total engine delivery growth of 21%. LEAP fan assembly output more than doubled after the production line was reoriented and standardized work was implemented.
- Improved F-18 Component OutputGE Aerospace and a key supplier used Flight Deck methods to improve parts flow and reduce repair times for a critical F414 component, doubling output to support U.S. Navy F-18 readiness.
- Supplier Material and LEAP Delivery ProgressPriority supplier material input increased by double digits year-over-year for the third quarter, marking the 10th consecutive quarter of sequential material input growth. LEAP engine deliveries increased 26% year-to-date.
- AI-Enabled MRO ProductivityAn AI-enabled tool at Celma automated the collection of technical records for CFM56 shop visits and reduced record-processing time by around 25%. Network-wide efforts produced another quarter of record internal shop visit output, with turnaround time down by over a week since the end of 2025 and LEAP turnaround time down two weeks.
- Near-Elimination of LEAP-Driven GroundingsLEAP engine-driven grounded aircraft were reduced to nearly zero since the summer, according to management.
- Defense and Propulsion Technologies GrowthDPT orders increased 18%, revenue grew 7%, profit increased 8%, and margins rose 20 basis points to 13.7%. Defense and systems revenue increased 5%, engine deliveries rose 4%, and propulsion and additive technologies grew 10%. Year-to-date DPT orders were up 33%, revenue was up 13%, and profit reached $1.3 billion, up 14%.
- Large F414 Support ContractGE Aerospace was awarded a five-year, $2.9 billion contract to provide ongoing support for F414 engines powering the U.S. Navy's F-18 and EA-18G fleets. DPT defense book-to-bill was 1.0 in the quarter and 1.5 year-to-date.
- Growing Defense BacklogTotal DPT backlog exceeded $30 billion, increasing by more than $5 billion since the start of the year.
- Raised 2026 GuidanceThe company raised total revenue growth guidance to 19%-20% from high teens previously. CES growth is now expected in the low 20s, commercial services revenue growth is expected to be approximately $5.5 billion year-over-year, commercial equipment growth is expected in the low 20s, and DPT growth remains expected in the low double digits.
- Higher Profit, EPS, and Free Cash Flow OutlookOperating profit guidance was raised to $10.9 billion-$11 billion, CES operating profit guidance to $10.5 billion-$10.6 billion, EPS guidance to $8-$8.10, and free cash flow guidance to $9.1 billion-$9.4 billion. The EPS midpoint increased by $0.30, while free cash flow guidance increased by $200 million and reflects above 100% conversion for the year.
- Positive 2027 Commercial Services OutlookManagement expects low double-digit commercial services growth in 2027, supported by a commercial installed base growing low to mid-single digits annually, ongoing work-scope favorability, pricing, elevated backlog, and more than $170 billion of total backlog.
- Strong Wide-Body Services DemandWide-body shop visit demand remained strong, with very few retirements, strong departures, and expanding work scopes. GE90 engines are transitioning from first to second shop visits, while GEnx is moving beyond quick turns for first shop visits. Management said wide-body work scopes are increasing.
- LEAP and CFM56 Aftermarket OpportunitiesLEAP shop visit revenue increased over 40% year-over-year in the quarter, with first-half LEAP shop visits up in the 50% range. Management expects LEAP shop visits to grow at approximately a 25% CAGR from now through 2030. CFM56 shop visits are expected to remain around the 2,300-to-2,400 range, with some growth toward the higher end in 2027.
- Lower CFM56 Retirements Supporting DemandCFM56 retirements are currently trending below the approximately 2% level expected for the year, and management expects a step-up in 2027 while still raising expected CFM56 shop visits to around 2,400. Lower retirements are also supporting spare-parts demand.
- CPP Acquisition and Capacity ExpansionGE Aerospace is continuing to invest through its announced agreement to acquire Consolidated Precision Products (CPP), a long-term supplier, to expand capacity for mission-critical castings. Management said the acquisition is intended to support delivery growth and accelerate new engine technologies applicable to both the current fleet and future programs.
- Continued Technology InvestmentThe company is investing more than $3 billion annually in R&D and more than $1 billion in capital expenditures to develop next-generation technologies with improved durability and performance.
- Progress in Advanced Propulsion ProgramsGE Aerospace and Beta Technologies completed the world's first high-altitude hybrid-electric flight. With Kratos, GE's GEK800, now designated the F143, became a second-source propulsion system for JASSM and moved from development to a funded U.S. Air Force program. The XA102 adaptive cycle engine was selected for the next phase of the U.S. Air Force NGAP program, including hardware procurement and sub-component testing.
- GEnx Production RampGEnx deliveries increased more than 60% year-to-date and more than doubled year-over-year in the quarter. GE delivered more than 50 engines to Boeing in the quarter, with deliveries increasing each month from July through September.
- Large Installed Base and Services PositionGE Aerospace supports an installed fleet of 80,000 engines and more than 2.3 billion flight hours. Management said the scale, long-term life cycles, field experience, technology expertise, and growing services network support continued services momentum.
- CPP Technology Development ProgressManagement said development work with CPP on next-generation airfoils had reached approximately 3,000 endurance cycles, with positive customer feedback and continued progress toward regulatory approvals expected next summer. Potential time-on-wing benefits have not yet been included in the 2027 or longer-term outlook.
IT:1GE Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 21, 2027 | 2026 (Q4) | 1.81- | 1.4 | ― | ― |
| Oct 20, 2026 | 2026 (Q3) | 1.792.00 | 1.48 | 35.54% (+0.53) | |
| Jul 16, 2026 | 2026 (Q2) | 1.661.80 | 1.48 | 21.69% (+0.32) | |
| Apr 21, 2026 | 2026 (Q1) | 1.421.66 | 1.33 | 24.83% (+0.33) | |
| Jan 22, 2026 | 2025 (Q4) | 1.271.40 | 1.18 | 18.94% (+0.22) | |
| Oct 21, 2025 | 2025 (Q3) | 1.301.48 | 1.02 | 44.35% (+0.45) | |
| Jul 17, 2025 | 2025 (Q2) | 1.281.48 | 1.07 | 38.33% (+0.41) | |
| Apr 22, 2025 | 2025 (Q1) | 1.141.33 | 0.73 | 81.71% (+0.60) | |
| Jan 23, 2025 | 2024 (Q4) | 0.931.18 | 0.73 | 60.78% (+0.44) | |
| Oct 22, 2024 | 2024 (Q3) | 1.011.02 | 0.58 | 75.84% (+0.44) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
