GE Aerospace Climbs on Strong Earnings and Upbeat 2026 Outlook
Shares rise after the aviation giant reports a 74% surge in Q4 orders and forecasts future profits above analyst expectations, signaling robust travel demand.
Shares of GE Aerospace (GE) gained ground after the company posted strong fourth-quarter results and an optimistic forecast for 2026, driven by soaring demand in the global aviation market.
The stock climbed nearly 2% to $318.50 in trading, approaching its 52-week high. The move came after the company reported adjusted earnings of $1.57 per share for the fourth quarter, easily surpassing analyst estimates of $1.43, according to company filings.
GE Aerospace, the remaining pillar of the former General Electric conglomerate, reported a 20% increase in adjusted revenue to $11.9 billion. The standout figure was a remarkable 74% year-over-year surge in total orders, which reached $27.0 billion for the quarter. This robust order book points to sustained momentum for the manufacturer of jet engines for both commercial and military aircraft.
In a sign of strong confidence, management issued upbeat guidance for the full year 2026, forecasting adjusted earnings per share in a range of $7.10 to $7.40. This forward-looking guidance outpaced analyst consensus estimates and provided investors with a clear indication of the company's expected growth trajectory.
The results underscore the strength of the commercial aviation sector, which continues to benefit from a powerful post-pandemic recovery in air travel. Airlines are expanding and modernizing their fleets, driving orders for new, more fuel-efficient engines like the LEAP series, which GE Aerospace produces in a joint venture with Safran SA. Furthermore, the high volume of existing planes in service is fueling growth in the company's high-margin services and aftermarket division.
According to a report from The Wall Street Journal, the revenue growth was largely propelled by this surge in commercial orders and robust aftermarket services. This marks a significant milestone for GE Aerospace as it operates as a standalone entity focused entirely on the aviation industry, following the successful spin-offs of its healthcare and energy divisions.
Analysts have a largely positive view of the company, with 16 of 19 analysts covering the stock holding a 'Buy' or 'Strong Buy' rating. The company's performance and outlook suggest its strategy to focus purely on its core aerospace competencies is paying off, allowing it to capitalize on the powerful tailwinds in the aviation industry.
Investors will be watching closely to see if GE can continue to execute on its backlog and manage persistent, though easing, supply chain pressures as it works to deliver on its significant order book. The strong 2026 forecast sets a high bar for performance over the next two years.