GE Aerospace beats by $0.24, beats on revs; raises FY26 EPS above consensus (311.28)
- Reports Q3 (Sep) earnings of $2.25 per share, excluding non-recurring items, $0.24 better than the FactSet Consensus of $2.01; revenues rose 24.7% year/year to $14.1 bln vs the $12.88 bln FactSet Consensus.
- Co issues raised guidance for FY26, sees EPS of $8.00-8.10 from $7.65-7.85, excluding non-recurring items, vs. $7.94 FactSet Consensus. Co sees adjusted revenue growth of +19-20% versus prior guidance of high teens.
- For the quarter, orders of $15.3 billion increased 58%, with services increasing 23% and equipment more than tripling. Revenue of $10.3 billion was up 21%. Services grew 17% with internal shop visit revenue up 12% from higher volume, including LEAP up over 40%, and heavier workscope; spare parts revenue grew over 20%. Equipment revenue grew 38%, driven by engine deliveries up 8%, including LEAP up 5%, and GEnx growth. While we delivered GE9X engines in the quarter, the impact from these shipments will be recognized post midseal certification. Profit of $2.9 billion was up 21% from higher services volume and price. Margins contracted (10) basis points from mix and inflation.
- In 2026, CES now expects revenue growth of low 20s, up from our prior guide of ~20%, driven by higher services revenue, which we now expect to grow at the higher end of our prior guide of low 20s, and equipment revenue growth of low 20s, up from ~20%. Operating profit is expected to be in the range of $10.5-$10.6 billion, up from our prior guide of $10.25-$10.35 billion, driven by higher services growth and reduced GE9X impact.
- GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., said, "We delivered strong results this quarter as solid demand drove orders up 49%, with strength in commercial services up 23%, total revenue up 18% and EPS up 36%. We are raising our 2026 guidance across the board, and we now expect 2027 commercial services to grow low-double-digits supported by our over $170 billion commercial services backlog."
- Culp continued, "Thanks to the collaboration of the GE Aerospace team with our supplier partners we continue to build momentum. By leveraging FLIGHT DECK fundamentals, year-to-date commercial services revenue and total engine deliveries were both up over 20%, including another quarter of record internal shop visit output. All the while, we're continuing to invest in our customers' needs with our agreement to acquire CPP to expand capacity, and over $3 billion in annual R&D to advance current and future technologies."