GE Aerospace raised its full-year guidance on Tuesday, projecting 2026 adjusted earnings of $8.00 to $8.10 per share, versus the $7.65 to $7.85 it had forecast earlier. That is above the $7.92 analysts expected on average, according to Bloomberg.
For the third quarter, the company reported orders of $19.0 billion, up 49%. Adjusted revenue was $13.3 billion, up 18%, and adjusted earnings per share were $2.25, up 36%. Operating profit rose 30% to $3.0 billion. GAAP profit was $2.8 billion, up 12%, on GAAP revenue of $14.1 billion, up 16%.
GE Aerospace raised other full-year targets as well. It expects adjusted revenue growth of about 19% to 20%, up from high-teens. Operating profit is projected at $10.9 billion to $11.0 billion, up from $10.55 billion to $10.75 billion. Free cash flow is projected at $9.1 billion to $9.4 billion, up from $8.9 billion to $9.2 billion.
"We are raising our 2026 guidance across the board, and we expect 2027 commercial services to grow low-double-digits supported by our over $170 billion commercial services backlog," CEO H. Lawrence Culp Jr. said in a statement.
In the Commercial Engines & Services unit, third-quarter revenue rose 21% to $10.3 billion, and operating profit rose 21% to $2.9 billion. Services revenue grew 17%, and services orders rose 23%. The company expects the unit's 2026 revenue to grow in the low 20% range, up from about 20%, with operating profit of $10.5 billion to $10.6 billion, up from $10.25 billion to $10.35 billion.
In Defense & Propulsion Technologies, revenue rose 7% to $3.5 billion. The company kept its outlook for low-double-digit revenue growth and operating profit of $1.6 billion to $1.7 billion.
Higher jet fuel costs tied to the war with Iran have pressured airlines, which have cut costs and capacity, according to Reuters. GE Aerospace has said the hit to its 2026 services sales and earnings should be modest, since much of its shop-visit work is already contracted and parts demand is outpacing supply, according to Reuters. Last month, Chief Financial Officer Rahul Ghai noted that airlines had not altered their fleet plans and that few aircraft remained parked, according to Reuters.
Year to date, commercial services revenue and total engine deliveries were each up more than 20%, GE Aerospace said. The company announced commitments for more than 1,800 engines at the Farnborough International Airshow, including more than 1,000 LEAP-1A engines for IndiGo. In October it signed an agreement with Turkish Airlines for more than 300 LEAP-1B engines.
GE Aerospace also signed an agreement to acquire Consolidated Precision Products to expand its castings capacity. The deal was agreed in September and is valued at nearly $12 billion, according to Bloomberg.
The company is scheduled to discuss the results on an investor call starting at 7:30 a.m. ET.