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. Reuters
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. GE Aerospace
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.
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. The Motley Fool
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.
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.
