New York, January 23, 2026, 10:40 EST — Regular session
- GE Aerospace shares climbed early Friday, bouncing back from Thursday’s steep decline after the company released its quarterly results and updated its 2026 outlook.
- The jet-engine maker is focusing on high-margin parts and services as airlines extend the life of older planes due to aircraft shortages.
- Airlines are once again raising concerns over engine maintenance expenses and growing repair delays.
GE Aerospace shares ticked up 0.5% to $296.40 on Friday morning, rebounding slightly after a sharp drop the previous day post-earnings.
The stock dropped 7.4% on Thursday, with investors focused on slowing growth and a full-year forecast that failed to meet the lofty expectations set by the recent rally. (Barron’s)
The move carries weight as GE’s 2026 outlook hinges on the aftermarket — the parts and maintenance that follow engine deliveries — amid ongoing airline spending to keep planes flying while new aircraft are scarce. GE projected adjusted profit per share between $7.10 and $7.40 for 2026, alongside low double-digit revenue growth. The company expects demand for higher-margin services to stay strong, fueled by supply constraints in the aircraft market, Reuters reported. (Reuters)
GE reported a 74% jump in fourth-quarter orders, reaching $27.0 billion, and closed 2025 with a backlog near $190 billion. The company posted adjusted earnings of $1.57 per share on $11.9 billion in adjusted revenue, alongside $1.8 billion in free cash flow. (GE Aerospace)
The broader U.S. market faced pressure Friday as investors navigated sharp moves in major stocks after earnings guidance and braced for the Federal Reserve’s upcoming meeting. (Reuters)
GE finds itself in the middle of a growing dispute over engine pricing power. Airlines have raised concerns over rising maintenance bills, spare-part shortages, and longer repair delays. GE CEO Larry Culp, however, defends the pricing, pointing to the roughly $3 billion spent annually on R&D needed to design and support these engines. According to Bain & Company estimates cited by Reuters, turnaround times at repair shops for newer engines have jumped about 150% compared to pre-pandemic levels. (Reuters)
That debate goes straight to what investors are focusing on now: can GE ramp up shop visits in its repair network without sparking a bigger backlash from airlines? And will durability improvements in CFM’s LEAP engines actually extend the “time on wing”—the interval between maintenance—for carriers operating Airbus A320neo-family jets and Boeing 737 MAX planes? (Reuters)
The downside scenario isn’t difficult to outline. If repair backlogs remain jammed or airlines secure tougher terms on parts and maintenance, GE’s margin story could falter despite robust demand. Tariffs and rising input costs might further complicate annual pricing reviews, and supply disruptions could still strike at the worst times.
Traders will probably watch closely for new updates from airlines on maintenance expenses and shop capacity. At the same time, the Fed’s policy meeting on Jan. 27-28 looms as a key macro trigger for industrial stocks. (Federal Reserve)
