New York, Jan 22, 2026, 13:59 EST — Regular session
- GE Aerospace shares dropped roughly 6% in the afternoon after initially climbing.
- The jet-engine maker expects 2026 profits to beat consensus, driven by sustained demand for airline maintenance
- Investors are watching for any hints that growth and margins might slow following the stock’s strong rally
Shares of GE Aerospace fell 5.7% to $300.25 in Thursday afternoon trading, reversing an earlier gain of roughly 6%. The S&P 500’s SPDR ETF climbed 0.8% during the session.
The selloff came just hours after GE reported its 2026 profit outlook beat expectations, fueled by strong demand for high-margin parts and maintenance services. Airlines are keeping planes in the air longer amid tight aircraft supply. GE projected adjusted profits between $7.10 and $7.40 per share for 2026, compared to a $7.11 consensus from LSEG. The company also noted that over 70% of its commercial engine revenue stems from parts and services—the “aftermarket,” or work done post-engine delivery. 1
The issue for bulls: this story isn’t cheap anymore, and the stock has grown sensitive to any sign the pace is cooling off. Even a strong quarter might leave investors wondering what happens once the backlog surge fades.
GE reported fourth-quarter orders surged 74% to $27.0 billion, with adjusted revenue up 20% at $11.9 billion. Adjusted earnings came in at $1.57 per share. The company generated $1.8 billion in free cash flow after capital expenses. Its backlog now stands around $190 billion. Looking ahead, GE forecast free cash flow for 2026 between $8.0 billion and $8.4 billion. CEO Larry Culp said the firm entered 2026 “with solid momentum” as it tackles that backlog. 2
Investors also took note of signals that growth is likely to slow after a blazing 2025. Revenue from commercial engines and services climbed 24% in the quarter, while defense and propulsion revenue increased 13%. Both figures marked a deceleration from the previous quarter, Investors.com reported, pointing out that the stock soared through 2025 and hit its peak earlier this month. 3
During the earnings call, Culp told analysts there was nothing so far this year that “gives us pause” on demand. CFO Rahul Ghai flagged expectations for LEAP original-equipment to turn profitable in 2026 but cautioned that losses on GE’s 9X programs would “double year over year” as shipments ramp up. 4
Risks remain tied to where the profit lies: the repair pipeline. Airlines are raising alarms over engine shortages and climbing maintenance expenses. Culp counters, saying pricing mirrors long-term investment, highlighting roughly $3 billion annually in R&D and the push to introduce durability upgrades in the LEAP engine family amid ongoing supply chain constraints. 5
Coming up on Jan. 27, RTX and Boeing will both release earnings, a key moment investors watch closely for insights on production bottlenecks, engine supply, and pricing strength in aerospace. 6
