GE Aerospace lifted its 2026 earnings and operating-profit targets after commercial services revenue grew 17% in the third quarter, while a conflict-related risk could weaken future maintenance demand.
The Commercial Engines & Services business recorded $10.34 billion in revenue for the quarter ended Sept. 30, up 21% from a year earlier. Services revenue climbed 17% to $7.74 billion. Revenue from engine repair visits increased 12%, while sales of spare parts rose more than 20%.
The company now expects adjusted earnings of $8 to $8.10 a share in 2026, compared with its previous range of $7.65 to $7.85. Its adjusted operating-profit forecast is $10.9 billion to $11 billion, up from $10.55 billion to $10.75 billion. Both annual forecasts use non-GAAP measures. Third-quarter adjusted earnings were $2.25 a share, 36% higher than a year earlier. GE Aerospace said the updated annual ranges reflect results so far in 2026 and its expectations for the fourth quarter.
The Oct. 20 revision was the second increase to the 2026 earnings range this year. The company left its outlook unchanged after first-quarter results, then raised it in July. Third-quarter orders also rose 49%, as described in EconoTimes’ earlier coverage.
In its quarterly filing, GE Aerospace said the Middle East conflict could reduce aircraft use and, in turn, demand for maintenance visits and parts. It also said higher prices tied to the conflict could hurt airline customers. It reported no significant operational disruption tied to the conflict during the first nine months of 2026.
Chairman and CEO H. Lawrence Culp, Jr., said a backlog exceeding $170 billion supports management’s expectation that commercial services sales will expand at a low-double-digit pace in 2027. GE Aerospace lists Jan. 21, 2027, as the date of its next earnings report.
