GE Aerospace posts strong Q1, keeps 2026 outlook

GE Aerospace (GE) reported first-quarter 2026 adjusted earnings per share of $1.86, above market expectations of $1.59. Continuing EPS on a GAAP basis was $1.83, flat year on year, while adjusted EPS rose 25% compared with the prior-year quarter.

Total orders for the quarter reached $23.0 billion, an 87% increase. Total GAAP revenue was $12.4 billion, up 25%, and adjusted revenue was $11.6 billion, up 29%. Profit on a GAAP basis was $2.2 billion with a margin of 17.7%, while non-GAAP operating profit was $2.5 billion with a 21.8% margin.

Cash from operating activities was $1.9 billion, an increase of 21%, and free cash flow was $1.7 billion, up 14%. The company filed a Form 8-K on April 21, 2026, furnishing these results and related materials via its investor relations website.

Chairman and CEO H. Lawrence Culp, Jr. said GE Aerospace (GE) had a strong first quarter, citing 87% order growth and a 29% increase in revenue supporting double-digit growth in earnings and free cash flow. He highlighted the company’s FLIGHT DECK operating framework as a tool to align operations with customer priorities.

Culp pointed to a $170 billion commercial services backlog and a young and diverse fleet as positioning the company to navigate the current environment. He said GE Aerospace is holding its full-year 2026 guidance and is trending toward the high end of the ranges given the strong start to the year.

For full-year 2026, GE Aerospace continues to guide to adjusted revenue growth from a 2025 base of $42.3 billion, operating profit of $9.85 billion to $10.25 billion, adjusted EPS of $7.10 to $7.40, and free cash flow of $8.0 billion to $8.4 billion with conversion above 100%, all on a non-GAAP basis.

In the Commercial Engines & Services segment, orders were $17.3 billion, up 93%. Revenue rose 34% to $8.9 billion, with services revenue up 39% and equipment revenue up 20%, driven by a 50% increase in unit volume partly offset by customer mix.

Segment profit was $2.4 billion, up 23%, helped by higher services volume, price, and the absence of certain charges related to long-term service agreements. Operating margin declined by 230 basis points due to growth in installed engines, including the GE9X, and continued investment.

Recent commercial wins include agreements for more than 650 engines, among them over 300 LEAP-1A engines with American Airlines (AAL), 300 GEnx engines with United Airlines (UAL), and 60 GEnx engines with Delta Airlines (DAL). GE Aerospace also signed a long-term materials agreement with Ryanair covering its fleet of about 2,000 CFM56 and LEAP engines.

The Defense & Propulsion Technologies segment recorded orders of $6.2 billion, up 67%, and revenue of $3.2 billion, up 19%. Profit increased 17% to $379 million, while margin edged down by 20 basis points, affected by mix, investments and inflation.

Defense & Systems revenue grew 14% with higher services and equipment, including a 24% rise in deliveries. Propulsion & Additive Technologies revenue increased 29%, led by growth across all businesses, including Avio Aero.

Recent defense-related highlights include a contract for T408 engines supporting the U.S. Marine Corps and a contract with the U.S. Air Force to design the GEK1500 engine for small Collaborative Combat Aircraft in partnership with Kratos.

Separately, Pentagon officials have held high level meetings with GE Aerospace and major U.S. automakers about increasing domestic weapons production by using commercial manufacturing expertise to expand output of drones and missiles. These talks underscore GE Aerospace’s role as a supplier of aircraft engines and defense systems.

GE Aerospace plans to invest $1 billion in U.S. manufacturing sites and its supplier base for the second consecutive year to accelerate engine deliveries, ramp parts that extend time on wing and strengthen the defense industrial base. The company is also expanding its external MRO network for LEAP engines by adding Iberia as a Premier MRO and broadening Delta TechOps capabilities.

In technology development, GE Aerospace and partners have established Singapore as the first airport testbed for Open Fan technology under the CFM RISE program to study integration of next-generation engine architectures into airport operations.

From a market perspective, Simply Wall St reported that GE shares recently traded at about $303.60, around 13% below a consensus analyst price target of $350.65, with individual targets ranging from $290 to $425. The service estimated that the stock was roughly 10.9% above its assessed fair value and noted a price-to-earnings ratio of 36.9 times.

Simply Wall St also highlighted that GE’s 30-day return of about 5.9% reflects recent positive momentum. It emphasized that Pentagon efforts to widen U.S. weapons production could reinforce GE Aerospace’s role in defense programs if discussions result in long-running contracts, while cautioning that setbacks in contract awards or timing could affect sentiment.