GE Aerospace raises full-year 2026 guidance as third-quarter orders jump 49%

General Electric Company, operating as GE Aerospace (GE), said Tuesday its third-quarter 2026 revenue rose 16% and GAAP profit rose 12%, and it raised full-year guidance across the board.

The company said in a filing that it released the results on its investor relations website on Oct. 20 and attached them as Exhibit 99.

Here's how the company did:

• Continuing EPS (GAAP): $2.32 vs. $2.04 a year earlier
• Adjusted EPS (non-GAAP): $2.25 vs. $1.66 a year earlier
• Total revenue (GAAP): $14,118 million vs. $12,181 million a year earlier
• Adjusted revenue (non-GAAP): $13,285 million vs. $11,305 million a year earlier
• Profit (GAAP): $2,805 million vs. $2,515 million a year earlier
• Operating profit (non-GAAP): $2,988 million vs. $2,299 million a year earlier

Total orders were $19.0 billion, up 49%.

Adjusted revenue, which excludes revenue from the company's run-off insurance operations, rose 18%.

Operating profit margin was 22.5%, up 220 basis points from 20.3% a year earlier.

The GAAP profit margin fell 80 basis points to 19.9%, from 20.7%.

Here's how the company's segments did during the quarter:

• Commercial Engines & Services revenue: $10,342 million vs. $8,521 million, up 21%
• Commercial Engines & Services operating profit: $2,887 million vs. $2,384 million, up 21%
• Defense & Propulsion Technologies revenue: $3,469 million vs. $3,251 million, up 7%
• Defense & Propulsion Technologies operating profit: $475 million vs. $440 million, up 8%

Commercial Engines & Services orders were $15.3 billion, up 58%, with services orders up 23% and equipment orders more than tripling.

Services revenue grew 17%. Internal shop visit revenue rose 12% on higher volume, including LEAP up over 40%, and heavier workscope. Spare parts revenue grew more than 20%.

Equipment revenue grew 38%, driven by engine deliveries up 8%, including LEAP up 5%, and GEnx growth.

The company delivered GE9X engines in the quarter, but said the revenue impact from those shipments will be recognized after midseal certification.

Defense & Propulsion Technologies orders were $4.3 billion, up 18%. Revenue of $3.5 billion grew 7%.

Defense & Systems revenue rose 5%, and Propulsion & Additive Technologies revenue rose 10%, driven by Avio Aero and Unison.

The company raised its 2026 guidance. Adjusted revenue growth is now expected at ~19-20%, up from high-teens previously.

Adjusted EPS guidance is now $8.00 to $8.10, up from $7.65 to $7.85, compared with $6.37 in 2025.

Free cash flow guidance is now $9.1 billion to $9.4 billion, up from $8.9 billion to $9.2 billion, compared with $7.7 billion in 2025. The company expects free cash flow conversion above 100%.

For Commercial Engines & Services, the company now expects revenue growth in the low 20s, up from about 20%. Operating profit is now expected at $10.5 billion to $10.6 billion, up from $10.25 billion to $10.35 billion.

Defense & Propulsion Technologies still expects revenue growth in the low double digits and operating profit of $1.6 billion to $1.7 billion.

"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%," GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said. "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."

The company said it signed an agreement to acquire Consolidated Precision Products (CPP) to expand mission-critical castings capacity for the aerospace industry across commercial engines, aftermarket and defense. The filing does not give a price or an expected closing date.

The company said it secured commitments for more than 1,800 engines at the Farnborough International Airshow. They included what the filing calls the largest LEAP agreement ever, for more than 1,000 LEAP-1A engines with IndiGo.

In October, the company signed an agreement with Turkish Airlines for more than 300 LEAP-1B engines, along with a long-term services agreement covering its entire LEAP-1B fleet of over 600 engines.

In Defense, the company signed a contract worth up to $2.9 billion to provide ongoing support for F414 engines powering the U.S. Navy's F/A-18 and EA-18G fleets.

Year to date, total revenue was $39,859 million, up 20% from $33,138 million, and GAAP profit was $7,804 million, up 9% from $7,149 million.

Cash from operating activities was $2,203 million in the quarter, down 14%. Free cash flow was $2,042 million, also down 14% from a year earlier.

The company said it would hold its conference call on Oct. 20 starting at 7:30 a.m. ET, with a webcast on its website.

The filing does not mention share repurchases or dividend changes.