GE Aerospace Beats Q3 Estimates but Shares Decline

GE Aerospace reported third-quarter financial results on October 20, 2026, beating analyst estimates for the eighth consecutive quarter. The company saw adjusted earnings per share rise 36% to $2.25 and revenue increase to $14.118 billion, with total orders surging 49% and a backlog exceeding $170 billion. Following these results, CFO Rahul Ghai raised 2026 earnings per share guidance to between $8.00 and $8.10 and free cash flow guidance to $9.1 billion to $9.4 billion.

Growth was supported by the Federal Aviation Administration's certification of the Boeing 737 MAX 10, which exclusively uses GE's LEAP engines and could expand the company's installed base by over 1,400 orders. CEO Larry Culp noted strong demand in defense and aftermarket sectors, though the company expects fewer GE9X engine deliveries this year while seeking certification for an upgraded mid-seal by the end of 2026.

Despite the financial beat, shares declined for three consecutive days following the report, resulting in a nearly 9% weekly loss. Bernstein SocGen Group analyst Douglas Harned lowered the stock's price target to $376, citing concerns that rising jet fuel prices linked to the war in Iran could weigh on airline profits and truncate the current rally in engine sales.