GE Aerospace Stock Falls -- 2026 Growth Outlook Slows Despite Q4 Beat
Nauman Khan
Thu, January 22, 2026 at 10:53 AM EST
1 min read
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This article first appeared on GuruFocus.
GE Aerospace (NYSE:GE) shares dipped about 6% on Thursday, as investors reacted to slower growth expectations for 2026 despite strong fourth-quarter results.
The company reported Q4 adjusted earnings of $1.57 a share, above analyst estimates, with revenue rising about 20% to $11.87 billion. Total orders surged 74% to $27 billion, and backlog reached roughly $190 billion, fueled by gains in commercial engines and defense orders.
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Looking ahead, GE guided fiscal 2026 adjusted EPS of $7.10 to $7.40 and projected low-double-digit revenue growth from $42.3 billion in 2025. Commercial engines and services are expected to grow in the mid-teens, while defense and propulsion may expand in the mid- to high-single-digit range, slower than last year's pace.
Analysts noted potential headwinds from equipment growth exceeding services and spare-engine normalization, which could limit margin expansion. CEO Larry Culp said strong demand for parts and services tied to rising air travel underpins earnings and cash flow growth, though the pace of growth may moderate compared with 2025.
This cautious outlook weighed on the stock despite the company beating prior forecasts.
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