TLDR
- GE Aerospace stock was down 3.1% to $301.50 in early trading Tuesday after a brief pop, following its Q3 report.
- Adjusted EPS came in at $2.25 against the $2.01 analysts expected, and orders rose 49% to $19 billion.
- The company raised its 2026 EPS outlook to $8 to $8.10 and revenue growth to 19% to 20%.
- The stock is on pace for a fourth straight drop after earnings, even with beats each time.
- Analysts worry about slower aftermarket growth in 2027, though GE guided to low-double-digit services growth.
GE Aerospace stock was down 3.1% at $301.50 in early trading Tuesday. It had been up 0.6% at $313.23 in premarket trading before the move reversed.
The drop came after another strong quarter. Adjusted earnings were $2.25 a share, ahead of the $2.01 analysts expected.
Adjusted sales were $13.3 billion, compared with the $12.9 billion Wall Street was looking for. A year ago, the company reported adjusted EPS of $1.66 on sales of $11.3 billion.
On a reported basis, revenue rose 16% to $14.12 billion. Profit from continuing operations was $2.41 billion, or $2.32 a share, up from $2.17 billion, or $2.04 a share.
Orders were the standout number at $19 billion, up 49% from a year earlier. That is far more than the company booked in sales.
Commercial engines and services revenue jumped 21%. The defense and propulsion technologies business grew sales 6.7%.
Guidance Goes Up Again
GE Aerospace raised its full-year outlook for the second time this year. It now expects adjusted EPS of $8 to $8.10, up from $7.65 to $7.85. Analysts were looking for $7.94.
Adjusted revenue growth is now expected at 19% to 20%. In July, management had said high-teens growth, up from an earlier 10% to 12% forecast.
CEO Larry Culp said demand drove the results. “We are raising our 2026 guidance across the board,” he said.
He also said the company now expects 2027 commercial services to grow at a low-double-digit rate. That is backed by a commercial services backlog of more than $170 billion.
Why the Stock Keeps Slipping
Investors seem focused on the aftermarket. Services grew 17% in the third quarter, so a low-double-digit rate next year is a step down.
Boeing and Airbus are also trying to ramp up plane production. That could pull parts supply away from the higher-margin aftermarket business.
Citi analyst John Godyn pushed back on that worry in a recent report. His surveys suggest trends are strong enough to question how steep the slowdown is in consensus models for early 2027.
The stock has fallen after each of the last three reports. It dropped 4.1% after Q2, 5.6% after Q1, and 7.4% after Q4 2025.
GE beat estimates each time, by an average of 11%. Earnings per share grew an average of 22% in those quarters.
Coming into the week, the stock was up just 2% for the year. It traded at about 35 times expected earnings, down from 45 times a year ago.
Wall Street now projects 2027 EPS of $9.13, up from $8.30 a year ago.
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