CINCINNATI, Jan 22, 2026, 07:09 EST
- GE Aerospace projected adjusted EPS between $7.10 and $7.40 for 2026, surpassing Street estimates
- Adjusted EPS for the fourth quarter jumped to $1.57, with revenue up 20%
- Airlines continue to spend heavily on maintenance amid ongoing shortages in aircraft and engine supplies
GE Aerospace predicted on Thursday that its 2026 adjusted earnings per share will exceed Wall Street expectations, driven by strong demand for spare parts and maintenance as airlines extend the life of older aircraft. Shares climbed nearly 4% in premarket trading. The company also noted that parts and services account for over 70% of its commercial engine revenue. 1
Timing is crucial. Boeing and Airbus have lagged in delivering new planes, forcing airlines to pour money into maintaining their current fleets—despite steady global travel demand.
This shift has boosted pricing power for engine makers and repair shops, intensifying airline frustrations over the cost and scarcity of parts, repair slots, and spare engines.
GE forecasts adjusted earnings per share between $7.10 and $7.40 for 2026, with operating profit expected to hit $9.85 billion to $10.25 billion. The company also projects free cash flow in the range of $8.0 billion to $8.4 billion. Adjusted figures exclude certain items, while free cash flow reflects the cash remaining after operations and capital spending. CEO H. Lawrence Culp Jr. said GE is entering 2026 with “solid momentum” following a year where free cash flow conversion exceeded 100%. 2
In the fourth quarter, GE reported adjusted earnings of $1.57 per share, with adjusted revenue hitting roughly $11.9 billion—a 20% increase from the same period last year. Orders surged 74%, reaching $27.0 billion.
Commercial Engines & Services, GE’s largest division, saw services revenue jump 31% this quarter, driven by increased shop visits and robust spare-parts sales. The company noted margin pressure due to product mix and investments, including ramped-up deliveries linked to the GE9X program.
GE’s earnings report highlighted a backlog near $190 billion and noted that commercial engine deliveries jumped 25% in 2025, with a record 1,802 LEAP engines shipped. The company also announced over $1 billion invested globally in its maintenance, repair, and overhaul network to boost capacity, including about $0.5 billion connected specifically to LEAP. 3
The tug-of-war in the aftermarket took a public turn Tuesday. The International Air Transport Association announced airlines have renewed their pact with CFM International — the engine joint venture between GE and France’s Safran — to back competition in engine maintenance and repairs. This agreement now runs through February 2033. IATA Director General Willie Walsh acknowledged airlines have “long struggled” against practices that “limited competition,” while CFM President Gael Meheust reaffirmed their commitment to a competitive aftermarket. 4
CFM’s engines, which power Boeing’s 737 lineup, go head-to-head with RTX’s Pratt & Whitney on Airbus’s A320 jets. This competition leaves airlines with limited options when supply chain issues arise. According to IATA, parts shortages and constrained repair capacity pushed airline costs up by nearly $6 billion last year.
Bloomberg reported that GE’s earnings outlook midpoint nudged past the average analyst forecast, indicating management expects steady maintenance demand fueled by resilient air travel. 5
On the sell side, Finance Yahoo pointed to a “Strong Buy” consensus rating, with the average price target near $348 a share—about 7% higher than the closing price on Jan. 19. 6
Investor’s Business Daily reported that GE shares have jumped roughly 85% in the last year. UBS bumped its price target to $368 but cautioned about a potential slowdown in late 2026. 7
The story isn’t all smooth. Engine shortages and durability problems are pushing airline costs up, while carriers resist price hikes as more planes wait idly for shop slots and parts. GE also risks profit pressure from a growing focus on lower-margin new engine deliveries—like the GE9X program—even as these feed future service revenue.
GE will hold its fourth-quarter earnings webcast at 7:30 a.m. EST on Thursday. 8
