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GE Aerospace reported adjusted earnings per share of $2.25 for Q3 FY2026, above the consensus of $2.02. Revenue as counted by the consensus was $13.3 billion, above the $12.7 billion estimate.
GE Aerospace reported total quarterly revenue of $14.1 billion, compared with $12.2 billion a year earlier. On the call, CFO Rahul Ghai said Commercial Engines & Services revenue grew 21%, with services up 17% and equipment up 38%. He attributed spare-parts growth to improved material availability, demand, growth in the LEAP external channel and price. Defense & Propulsion Technologies revenue grew 7%, he said.
GE Aerospace reported diluted earnings per share of $2.20, compared with $2.02 a year earlier. Its gross margin was 35.6%, down from 36.3%, while operating margin was 24.4%, compared with 23.1%. The company reported free cash flow of $1.9 billion, down from $2.2 billion a year earlier.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $14.1 billion | $12.2 billion | 15.9% |
| Diluted EPS | $2.20 | $2.02 | 8.91% |
| Gross margin | 35.6% | 36.3% | −0.7 percentage points |
| Operating margin | 24.4% | 23.1% | 1.4 percentage points |
| Free cash flow | $1.9 billion | $2.2 billion | −13.7% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $2.25 | $2.02 | Beat by 11.4% |
| Revenue | $13.3 billion | $12.7 billion | Beat by 4.99% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Larry Culp said commercial services orders rose 23% in the quarter and the company’s backlog exceeded $170 billion. Asked about airline pressures, he said engine removal rates had remained steady and the number of engines awaiting work at GE Aerospace’s shops had increased 20% since the start of the year. Culp said airlines were managing fuel pressures while seeking to keep their fleets flying.
CFO Rahul Ghai said spare-parts orders grew faster than services orders overall. He said material availability had improved, but spare-parts delinquency increased sequentially as demand grew. Culp said the company wanted to reduce that delinquency and meet customers’ lead-time expectations.
Asked about widebody maintenance, Ghai said work scopes were expanding as GE90 engines moved from first to second shop visits. He said the benefit of widebody work was partly offset by customer mix, including a greater share of long-term service agreements rather than time-and-material contracts. On quarterly margins, Ghai said services volume, productivity and price helped operating profit margin, partly offset by inflation.
Culp said changes to a LEAP fan assembly production line increased capacity. He also said LEAP shop turnaround time had fallen by two weeks since the end of 2025 and LEAP engine-driven aircraft groundings had declined to nearly zero since the summer. GE Aerospace’s agreement to acquire Consolidated Precision Products is intended to expand casting capacity, he said.
For the fourth quarter, Ghai said more than 95% of spare parts were in backlog and more than 100% of the engines for internal shop visits were already in the shop, with others awaiting induction. Asked about GE9X, Culp said deliveries with an upgraded mid-seal had begun and certification was targeted by year-end, subject to FAA approval.
Guidance
GE Aerospace raised its FY2026 revenue growth outlook to 19%-20% from high teens. The company raised its adjusted earnings-per-share range to $8.00–$8.10 from $7.65–$7.85, and its free-cash-flow range to $9.1 billion–$9.4 billion from $8.9 billion–$9.2 billion.
CFO Rahul Ghai said the company now expects Commercial Engines & Services revenue growth in the low 20s, compared with around 20% previously. He said GE Aerospace now expects low double-digit commercial services growth in 2027, compared with its previous expectation of double digits.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Operating income, Dpt | FY2026 | $1.6 billion–$1.7 billion | $1.6 billion–$1.7 billion | Held |
| Revenue, Dpt | FY2026 | GE Aerospace expects DPT revenue growth in the low double digits in FY2026. | — | — |
| Operating income, Ces | FY2026 | $10.5 billion–$10.6 billion | $10.3 billion–$10.4 billion | Raised |
| Revenue, Ces | FY2026 | GE Aerospace expects CES revenue growth in the low 20s in FY2026. | — | — |
| Operating income, Corporate and Other Non Gaap | FY2026 | GE Aerospace expects adjusted Corporate & Other operating costs to trend toward the lower end of its prior guidance range in FY2026. | — | — |
| Free cash flow, non-GAAP | FY2026 | $9.1 billion–$9.4 billion | — | New |
| EPS, non-GAAP | FY2026 | $8.00–$8.10 | — | New |
| Operating income, non-GAAP | FY2026 | $10.9 billion–$11.0 billion | — | New |
| Revenue, Commercial Services | FY2027 | GE Aerospace expects commercial services to grow low-double-digits in FY2027. | — | — |
| Units growth, Leap Shop Visits | FY2027 | 25.0%–26.0% | — | New |
| Units, Cfm56 Shop Visits | FY2027 | GE Aerospace expects CFM56 shop visits to be largely flat in FY2027. | — | — |
| Operating margin, non-GAAP | FY2027 | GE Aerospace expects total company margins to remain in line with FY2026 in FY2027. | — | — |
| Operating income, Ge9x, non Gaap | FY2027 | $300.0 million | — | New |
| Operating margin, Ces Services, non Gaap | FY2027 | GE Aerospace expects CES services margins to be flat in FY2027. | — | — |
| Revenue, Dpt, non Gaap | FY2027 | GE Aerospace expects DPT revenue growth in the high single digits in FY2027. | — | — |
| Revenue, Commercial Services, non Gaap | FY2027 | GE Aerospace expects low double-digit commercial services growth in FY2027. | — | — |
| Tax rate, non-GAAP | FY2026 | 16.0% | — | New |
| Operating expenses, Corporate, non Gaap | FY2026 | $1.2 billion–$1.3 billion | — | New |
| Operating income, Dpt, non Gaap | FY2026 | $1.6 billion–$1.7 billion | — | New |
| Operating income, Ces, non Gaap | FY2026 | $10.5 billion–$10.6 billion | — | New |
| Revenue, Dpt, non Gaap | FY2026 | GE Aerospace expects DPT revenue to grow by the low double-digit range in FY2026. | — | — |
| Revenue, Commercial Equipment, non Gaap | FY2026 | GE Aerospace expects commercial equipment revenue to grow by the low 20% range in FY2026. | — | — |
| Revenue, Commercial Services, non Gaap | FY2026 | $5.5 billion | — | New |
| Revenue, Ces, non Gaap | FY2026 | GE Aerospace expects CES revenue to grow by the low 20% range in FY2026. | — | — |
| Revenue growth, non-GAAP | FY2026 | 19.0%–20.0% | — | New |
| Units growth, Leap Shop Visits | FY2026-FY2030 | 25.0% | — | New |
| Revenue growth, Commercial Equipment | FY2026 | 20.0% | — | New |
| Revenue growth, Ces | FY2026 | 20.0% | — | New |
| EPS | FY2026 | $7.65–$7.85 | — | New |
| Free cash flow | FY2026 | $8.9 billion–$9.2 billion | — | New |
| Operating income | FY2026 | $10.6 billion–$10.8 billion | — | New |
| Units growth, Ces Engine Deliveries | FY2026 | 15.0% | — | New |
| Revenue, Services | FY2026 | $4.0 billion | — | New |