Third Quarter 2026
Filed Oct 20, 2026GE Aerospace Announces Third Quarter 2026 Results; year-to-date orders, revenue and total engine deliveries up over 20%, raising full-year guidance
Third-quarter adjusted revenue rose 18%, operating profit rose 30%, adjusted EPS rose 36%, and the company raised full-year adjusted revenue growth, operating profit, adjusted EPS and free-cash-flow guidance. Cash from operating activities and free cash flow each declined 14% in the quarter, while CES margin contracted 10 basis points.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total orders, three months ended September 30, 2026other | $19B | – | +49% |
| Total revenue, three months ended September 30, 2026GAAP | $14.12B | – | 16 % |
| Profit, three months ended September 30, 2026GAAP | $2.81B | – | 12 % |
| Profit margin, three months ended September 30, 2026GAAP | 19.9 % | – | (80) bps |
| Continuing EPS, three months ended September 30, 2026GAAP | $2.32 per diluted share | – | 14 % |
| Cash from operating activities, three months ended September 30, 2026GAAP | $2.20B | – | (14) % |
| Adjusted revenue, three months ended September 30, 2026non-GAAP | $13.29B | – | 18 % |
| Operating profit, three months ended September 30, 2026non-GAAP | $2.99B | – | 30 % |
| Operating profit margin, three months ended September 30, 2026non-GAAP | 22.5 % | – | 220 bps |
| Adjusted EPS, three months ended September 30, 2026non-GAAP | $2.25 per diluted share | – | 36 % |
| Free cash flow, three months ended September 30, 2026non-GAAP | $2.04B | – | (14) % |
| Total revenue, nine months ended September 30, 2026GAAP | $39.86B | – | 20 % |
| Profit, nine months ended September 30, 2026GAAP | $7.80B | – | 9 % |
| Profit margin, nine months ended September 30, 2026GAAP | 19.6 % | – | (200) bps |
| Continuing EPS, nine months ended September 30, 2026GAAP | $6.44 per diluted share | – | 12 % |
| Cash from operating activities, nine months ended September 30, 2026GAAP | $7.33B | – | 14 % |
| Adjusted revenue, nine months ended September 30, 2026non-GAAP | $37.53B | – | 23 % |
| Operating profit, nine months ended September 30, 2026non-GAAP | $8.26B | – | 22 % |
| Operating profit margin, nine months ended September 30, 2026non-GAAP | 22.0 % | – | (30) bps |
| Adjusted EPS, nine months ended September 30, 2026non-GAAP | $6.13 per diluted share | – | 28 % |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $6.73B | – | 13 % |
| Adjusted Corporate & Other operating costs, three months ended September 30, 2026non-GAAP | −$373M | – | 29 % |
| Adjusted Corporate & Other operating costs, nine months ended September 30, 2026non-GAAP | −$966M | – | (9) % |
| Commercial Engines & Services orders, three months ended September 30, 2026other | $15.27B | – | 58 % |
| Commercial Engines & Services operating profit, three months ended September 30, 2026other | $2.89B | – | 21 % |
| Commercial Engines & Services operating profit margin, three months ended September 30, 2026other | 27.9 % | – | (10) bps |
| Commercial Engines & Services orders, nine months ended September 30, 2026other | $45.53B | – | 54 % |
| Commercial Engines & Services operating profit, nine months ended September 30, 2026other | $7.90B | – | 22 % |
| Commercial Engines & Services operating profit margin, nine months ended September 30, 2026other | 27.2 % | – | (130) bps |
| Defense & Propulsion Technologies orders, three months ended September 30, 2026other | $4.27B | – | 18 % |
| Defense & Propulsion Technologies operating profit, three months ended September 30, 2026other | $475M | – | 8 % |
| Defense & Propulsion Technologies operating profit margin, three months ended September 30, 2026other | 13.7 % | – | 20 bps |
| Defense & Propulsion Technologies orders, nine months ended September 30, 2026other | $14.58B | – | 33 % |
| Defense & Propulsion Technologies operating profit, nine months ended September 30, 2026other | $1.33B | – | 14 % |
| Defense & Propulsion Technologies operating profit margin, nine months ended September 30, 2026other | 13.1 % | – | — bps |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Commercial Engines & Services, three months ended September 30, 2026Services grew 17% with internal shop visit revenue up 12% from higher volume, including LEAP up over 40%, and heavier workscope; spare parts revenue grew over 20%. Equipment revenue grew 38%, driven by engine deliveries up 8%, including LEAP up 5%, and GEnx growth. | $10.34B | – | 21 % |
| Defense & Propulsion Technologies, three months ended September 30, 2026Defense & Systems revenue was up 5% driven by growth in both services and equipment, including engine deliveries up 4%. Propulsion & Additive Technologies revenue increased 10% with growth driven by Avio Aero and Unison. | $3.47B | – | 7 % |
| Eliminations & Other, three months ended September 30, 2026Reported as Eliminations & Other in the adjusted revenue segment table. | −$526M | – | (13) % |
| Commercial Engines & Services, nine months ended September 30, 2026Year-to-date commercial services revenue and total engine deliveries were both up over 20%. | $28.99B | – | 27 % |
| Defense & Propulsion Technologies, nine months ended September 30, 2026Reported segment revenue growth was 13%. | $10.13B | – | 13 % |
| Eliminations & Other, nine months ended September 30, 2026Reported as Eliminations & Other in the adjusted revenue segment table. | −$1.58B | – | (22) % |
Full-Year 2026 outlook
- RevenueAdjusted Revenue Growth: ~19-20%
- NoteOperating Profit*: $10.9 - $11.0B
- NoteAdjusted EPS*: $8.00 - $8.10
- NoteFree Cash Flow*: $9.1 - $9.4B
- NoteFCF* conversion: >100%
- NoteCES revenue growth: low 20s
- NoteCES operating profit: $10.5-$10.6 billion
- NoteDPT revenue growth: low double digits
- NoteDPT operating profit: $1.6-$1.7 billion
- NoteAdjusted Corporate & Other operating costs* expected to trend toward the lower end of prior $(1.2)-$(1.3)B guidance range, with ~$(500)M Corporate cost and ~$(700)M Eliminations
What drove it
- Total orders were $19.0B, up 49%; CES orders rose 58% and DPT orders rose 18%.
- CES services increased 17%, with internal shop visit revenue up 12%; equipment revenue increased 38%.
- CES profit increased on higher services volume and price; margin contracted from mix and inflation.
- DPT profit increased from increased volume and price, partially offset by mix and inflation.
- The company cited increased material input from priority suppliers double-digits year-over-year and LEAP growing 26% year-to-date.
- GE Aerospace signed an agreement to acquire Consolidated Precision Products to expand mission-critical castings capacity.
Concerns
- Third-quarter cash from operating activities and free cash flow each declined (14) % year over year.
- GAAP profit margin declined (80) bps in the quarter and (200) bps in the nine-month period.
- CES operating profit margin declined (10) bps in the quarter and (130) bps in the nine-month period, with mix and inflation cited for the quarterly contraction.
- Operating profit margin for the nine-month period declined (30) bps.
- The timing of the GE9X shipment impact will be recognized post midseal certification.
What to watch
- Execution against full-year adjusted revenue growth guidance of ~19-20%, operating profit guidance of $10.9 - $11.0B, adjusted EPS guidance of $8.00 - $8.10, and free-cash-flow guidance of $9.1 - $9.4B.
- CES services growth, internal shop visit output, spare-parts revenue, engine deliveries and the post-midseal-certification timing of GE9X shipment recognition.
- CES margin performance amid mix and inflation.
- DPT delivery, revenue and profit performance against its low-double-digit revenue-growth and $1.6-$1.7 billion operating-profit expectations.
- Progress on the CPP acquisition and the planned capacity expansion.
Balance sheet and cash flow
- Cash from operating activities (GAAP), three months ended September 30, 2026: $2,203 million, (14) %
- Free cash flow (Non-GAAP), three months ended September 30, 2026: $2,042 million, (14) %
- Cash from operating activities (GAAP), nine months ended September 30, 2026: $7,329 million, 14 %
- Free cash flow (Non-GAAP), nine months ended September 30, 2026: $6,728 million, 13 %
Analysis
GE Aerospace reported strong third-quarter operating momentum. Total orders were $19.0B, up 49%, while GAAP revenue increased 16% to $14,118 million and adjusted revenue increased 18% to $13,285 million. GAAP profit rose 12% to $2,805 million, operating profit increased 30% to $2,988 million, and adjusted EPS increased 36% to $2.25 per diluted share. The company raised total-company guidance across adjusted revenue growth, operating profit, adjusted EPS and free cash flow.
Commercial Engines & Services was the principal growth engine. Quarterly revenue increased 21% to $10,342 million and operating profit increased 21% to $2,887 million. Services grew 17%, supported by higher internal shop visit volume, heavier workscope and spare-parts revenue growth. Equipment revenue grew 38%, driven by higher engine deliveries and GEnx growth. CES margin was 27.9%, down 10 basis points, as mix and inflation offset the benefit of higher services volume and price.
Defense & Propulsion Technologies produced more moderate revenue growth but improved profitability. Revenue increased 7% to $3,469 million, with Defense & Systems revenue up 5% and Propulsion & Additive Technologies revenue up 10%. Operating profit rose 8% to $475 million and margin expanded 20 basis points to 13.7%, with volume and price more than offsetting part of the mix and inflation effect.
Cash generation was the primary quarter-over-quarter pressure point in the reported results. Cash from operating activities was $2,203 million and free cash flow was $2,042 million, each down 14% from the prior-year quarter. For the nine-month period, however, cash from operating activities increased 14% to $7,329 million and free cash flow increased 13% to $6,728 million. The release did not report cash, debt, dividends or share repurchases.
The revised guide signals management's confidence in fourth-quarter execution and sustained services demand. Full-year adjusted revenue growth is now expected at ~19-20%, operating profit at $10.9 - $11.0B, adjusted EPS at $8.00 - $8.10 and free cash flow at $9.1 - $9.4B. CES now expects low-20s revenue growth and $10.5-$10.6 billion of operating profit, while DPT continues to expect low-double-digit revenue growth and $1.6-$1.7 billion of operating profit. Attention remains on services and delivery execution, margin effects from mix and inflation, GE9X recognition timing, and the announced CPP acquisition.
Management, verbatim
We 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%. We are raising our 2026 guidance across the board, and we now expect 2027 commercial services to grow low-double-digits supported by our over $170 billion commercial services backlog.
H. Lawrence Culp, Jr., GE Aerospace Chairman and CEO
Thanks to the collaboration of the GE Aerospace team with our supplier partners we continue to build momentum. By leveraging FLIGHT DECK fundamentals, year-to-date commercial services revenue and total engine deliveries were both up over 20%, including another quarter of record internal shop visit output. All the while, we're continuing to invest in our customers' needs with our agreement to acquire CPP to expand capacity, and over $3 billion in annual R&D to advance current and future technologies.
H. Lawrence Culp, Jr., GE Aerospace Chairman and CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons were not reported for the presented financial metrics.
- Gross margin was not reported.
- Cash balance was not reported.
- Debt balance was not reported.
- Dividend information was not reported.
- Share repurchase information was not reported.
- Capital return amounts were not reported.
- GAAP full-year 2026 guidance was not reported.
- Full-year 2026 tax-rate guidance was not reported.
- Full-year 2026 operating-expense guidance was not reported.
- A previous-release outlook was not provided; therefore, no actual-versus-prior-guidance comparison is included.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.