New York, Jan 24, 2026, 14:16 ET — The market has closed.
Shares of GE Aerospace fell 0.4% on Friday to $293.87, marking their second day in the red following a sharp 7.4% slide Thursday. Over the past five sessions, the stock has dropped roughly 9.6% as it headed into the weekend. (MarketScreener)
The pullback came after GE released its fourth-quarter results and 2026 forecast, which relied heavily on a still-busy aftermarket—the parts and maintenance segment that supports engines once they’re operational—as airlines extend the life of their planes amid delivery delays. GE projected adjusted profit for 2026 between $7.10 and $7.40 per share, slightly below the $7.11 analysts expected, and said adjusted revenue should climb in the low double digits. Shares had jumped nearly 4% in premarket trading following the report. (Reuters)
GE reported a 74% jump in fourth-quarter orders, hitting $27 billion, while adjusted revenue climbed 20% to $11.9 billion. CEO H. Lawrence Culp Jr. highlighted that free cash flow—cash remaining after capital expenditures—“exceeded 100%” of conversion in 2025, and noted a backlog near $190 billion. (GE Aerospace)
A filing revealed the company released its quarterly and full-year 2025 results along with related documents on its investor relations site Thursday. (SEC)
Culp, speaking to Reuters in Chicago, pushed back against airline claims that engine makers are exploiting shortages and long repair queues to jack up prices. “We invest heavily in technology,” he said, highlighting around $3 billion annually in R&D. GE is working on durability upgrades for its LEAP engine family, made through CFM International—a joint venture with Safran and the exclusive engine supplier for Boeing’s 737 MAX. Regulators approved a durability kit for the LEAP‑1A in late 2024 to boost “time on wing,” or the span between shop visits. Bain & Company estimates that turnaround times for shop visits on newer engines are roughly 150% higher than pre-pandemic levels. Culp added: “At the end of the day, the airlines are the ultimate customer.” (Reuters)
Analysts were quick to label the post-earnings dip a valuation reset, not a shift in the engine cycle. UBS raised its price target to $374 from $368, maintaining a Buy rating. RBC Capital stuck with its Outperform rating and $355 target following the report. (Investing)
Investors on Monday face the key question: will the selloff pause or trigger further position cuts after a year of tight expectations? Traders are eyeing analyst updates and new airline comments on maintenance costs and repair delays for clues.
The downside risk remains: if supply-chain issues persist or airlines press harder on maintenance costs, margins could take a hit despite steady demand. A steeper drop in global travel would also weigh on the lucrative service business investors currently expect to hold up.
The Federal Reserve’s meeting on Jan. 27-28, with a policy decision set for Jan. 28, stands as the next major trigger for risk appetite. (Federal Reserve)
