New York, Jan 24, 2026, 14:16 ET — The market has shut down for the day.
GE Aerospace shares slid 0.4% on Friday, closing at $293.87, extending losses into a second straight day after a steep 7.4% plunge on Thursday. The stock has now fallen about 9.6% over the last five trading sessions heading into the weekend. 1
The pullback followed GE’s release of its fourth-quarter results and 2026 outlook, which leaned heavily on a still-robust aftermarket—the parts and maintenance segment supporting engines in service—as airlines hold onto planes longer amid delivery delays. GE forecast adjusted profit for 2026 between $7.10 and $7.40 per share, just shy of the $7.11 analysts had anticipated, and said adjusted revenue is expected to rise in the low double digits. Shares had surged nearly 4% in premarket trading after the report. 2
GE’s fourth-quarter orders surged 74% to $27 billion, with adjusted revenue up 20% at $11.9 billion. CEO H. Lawrence Culp Jr. pointed out that free cash flow—cash left after capital spending—“exceeded 100%” of conversion in 2025. He also flagged a backlog approaching $190 billion. 3
The company disclosed its quarterly and full-year 2025 results on Thursday, posting the report and supporting documents on its investor relations site. 4
Culp, speaking to Reuters in Chicago, rejected airline accusations that engine makers are using shortages and long repair queues to hike prices. “We invest heavily in technology,” he said, citing about $3 billion a year in R&D. GE is rolling out durability upgrades for its LEAP engines, built by CFM International—a joint venture with Safran and the sole engine supplier for Boeing’s 737 MAX. Regulators approved a durability kit for the LEAP‑1A late last year to extend “time on wing,” meaning longer intervals between shop visits. Bain & Company puts turnaround times for new engines at around 150% above pre-pandemic levels. Culp noted: “At the end of the day, the airlines are the ultimate customer.” 5
Analysts rushed to call the post-earnings drop a valuation reset rather than a change in the engine cycle. UBS bumped its price target up to $374 from $368, keeping a Buy rating intact. RBC Capital held firm with its Outperform rating and $355 target after the report. 6
On Monday, investors are grappling with a crucial question: will the recent selloff stall, or is it just the start of deeper position trimming after a year marked by tight expectations? Traders are closely watching analyst updates and fresh airline remarks on maintenance expenses and repair delays for any hints.
Downside risks linger: ongoing supply-chain problems or airlines pushing maintenance expenses could squeeze margins, even with steady demand. A sharper decline in global travel would hit the profitable service segment that investors are betting will stay resilient.
The Federal Reserve’s meeting scheduled for Jan. 27-28, with a policy announcement due on Jan. 28, is shaping up as the next key event to influence risk appetite. 7
