GE Aerospace (1GE) AI Stock Analysis

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.