GE US S&P 500Russell 1000 Earnings call · transcribed from the recording
GE Aerospace (GE) · Q3 2026 results and valuation
Share price: $342.75 · 2026-11-11
GE Aerospace is an American aircraft engine supplier. The company provides engines for the aviation market and operates as the successor to the original General Electric Company. Source: Wikipedia
Results Q3 2026 vs Q2 2026 · previous quarter · published 20 Oct 2026 and 16 Jul 2026
Net income down 3.5% on the previous quarter. Management sounded very upbeat, in its script and in answers to analysts.
1 · Numbers
−3.5%
Net income vs Q2 2026
Outlook given
Net income 2.29B vs 2.37B
Revenue +5.8%
Why Against the same quarter last year (+6.1%), net income rose because operating profit grew 30% driven by services volume, productivity, and price, while the reduction in share count from capital allocation actions further increased the earnings per share.
2 · How management spoke
Very upbeat
More upbeat than 90% of company calls
Answers to analysts: upbeat, in line with the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
GE raised its EPS guidance to a range of $8 to $8.10, which is an increase of 30 cents at the midpoint.
Valuation
Is GE Aerospace undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (3-year revenue growth), the model's fair value is $190.91 a share — the stock trades 80% above it. Today's price assumes 17.4% growth a year.
Current price
$342.75
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+17.4% for 10 yrs
Fair value / share
$190.91
Buy below
$143.18
Price vs fair value
Overvalued 80%
Price vs buy-below price
Overvalued 139%
Management expects
Growth +25% · from the Q3 2026 report: “GE reaffirmed long-term guidance that the LEAP shop visit should increase by a 25% CAGR from now to 2030 starting in 2027.”
A guidance figure for growth, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Key theme
GE increased its expected revenue growth from high teens to 19% to 20% for the upcoming period.
Source quote
“We are now expecting revenue growth of 19% to 20% from high teens previously.”
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Guidance
GE raised its EPS guidance to a range of $8 to $8.10, which is an increase of 30 cents at the midpoint.
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Figure
Operating profit grew 30% with margins of 22.5%, which increased 220 basis points year over year.
Source quote
“Operating profit grew 30%, and margins of 22.5%, up 220 basis points year over year.”
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Key theme
GE expects between 1.5 to 2 points of CFM 56 retirements, impacting the company's fleet landscape.
Source quote
“And now we are expecting somewhere between a point and a half to two points of CFM 56 retirements.”
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Key theme
GE raised its expectations for CFM56 shop visits to 2400 in the summertime.
Source quote
“But even with that assumption, we've raised our expectations for CFM56 shop visits to 2400 in the summertime.”
4 more
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Key theme
The cost per unit is coming down meaningfully from even 25 to 26, with another step down expected in 2027.
Source quote
“The cost per unit is coming down meaningfully as we go from even 25 to 26, expecting another step down here as we get into 2027.”
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Guidance
GE reaffirmed long-term guidance that the LEAP shop visit should increase by a 25% CAGR from now to 2030 starting in 2027.
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Guidance
GE raised its 2026 guidance due to the strength of current results combined with fourth quarter expectations.
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Figure
In the third quarter, CES orders grew 58%, with services orders increasing 23% year over year and nearly $300 million sequentially.
Source quote
“Turning to CES, in the third quarter, orders grew 58%, with services orders up 23% year over year and nearly $300 million sequentially.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Beyond increasing delivery, acquiring CPP allows us to accelerate the introduction of new engine technologies that improve cooling and enhance durability and efficiency of our current fleet and future programs.”
“Even with strong revenue growth, spare parts delinquency increased sequentially, reflecting strong underlying demand.”
“Our results build on the strength from the first half, with year-to-date orders up 49%, revenue up 23%, operating profit growth of $1.5 billion, or 22%.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 14.12B | 13.35B | +5.8% | 12.18B | +15.9% |
| Operating income | 2.81B | 2.80B | +0.1% | 2.52B | +11.5% |
| Net income | 2.29B | 2.37B | −3.5% | 2.16B | +6.1% |
| EPS | 2.20 | 2.26 | −2.7% | 2.02 | +8.9% |
| P/E today 37.3 | 36.1 | 44.1 | −8.0 | 40.1 | −4.0 |
Topics
Most discussed now
- EPS was $2.25, up 36%, from increased operating profit and a reduced share count.
- Net contract assets and liabilities were a source in the quarter from strong utilization billings.
- GE Aerospace's performance is underpinned by its sustained competitive advantages.
- Across its narrow-body, wide-body, regional, and defense platforms, GE Aerospace offers the best-performing products under wing, supported…
- At the low double digits level, that's about three and a half to $4 billion of revenue growth and expecting...
Faded since Q2 2026
- Fading Margins decreased 130 basis points to 21.7% from installed engine growth, investments, and inflation.
- Fading The other part is that on the cost side, GE Aerospace does expect continuous reduction in its shop visit cost from...
- Dropped Those engines are due to come in for their first shop visit on a relatively predictable schedule.
- Fading The second quarter marked another quarter of significant growth driven by robust commercial services.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
GE Aerospace reported third-quarter 2026 revenue of $14.1 billion, up 16% year-over-year, and adjusted EPS of $2.25, up 36% compared to the previous year.
- Director or officer change; Other events · SEC 8-K
GE Aerospace appointed Wes Bush as independent Lead Director on September 21, 2026, while Tom Horton remains on the Board of Directors.
- Regulation FD disclosure; Other events · SEC 8-K
GE Aerospace agreed to acquire Consolidated Precision Products for a purchase price of $11.75 billion, with the transaction expected to close in the second half of 2027.
- Results of operations · SEC 8-K
GE Aerospace reported second-quarter 2026 revenue of $13.3 billion, up 21% year-over-year, and a continuing EPS of $2.30, up 23% compared to the same period in 2025.
- Articles or bylaws amended · SEC 8-K · routine
- Director or officer change · SEC 8-K
GE Aerospace announced that Judson Althoff, CEO of Microsoft’s Commercial Business, will join its Board of Directors effective June 24, 2026.
- Director or officer change; Shareholder vote results · SEC 8-K
Shareholders approved all director nominees, the Say on Pay advisory vote, the Amended LTIP reducing shares to 50 million, the ESPP, and the 2026 auditor ratification, while rejecting the defense-related products report proposal.
- Results of operations · SEC 8-K
GE Aerospace reported first-quarter 2026 revenue of $12.4 billion, up 25% from $9.9 billion in the same period last year, with adjusted revenue of $11.6 billion increasing 29%.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-24.
Cash & runway
Cash & equivalents
$43.30B
2017-12-31
Long-term investments
$35.95B
total liquidity $79.25B
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -2.2% YoY, -0.5% QoQ.
| Quarter | Shares |
|---|---|
| Q1 2025 | 1.07B |
| Q2 2025 | 1.06B |
| Q3 2025 | 1.06B |
| Q1 2026 | 1.05B |
| Q2 2026 | 1.04B |
| Q3 2026 | 1.03B |
Shares outstanding: 1.03B (2026-09-30)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 51 filings; 50 filings parsed.
Sold by insiders
58.1K shares
$18.9M · 14 transactions
Bought by insiders
9.8K shares
$10.0M · 1 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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2027
expected low double-digit services growth
Source quote
“Combined with our backlog of over 170 billion dollars, we're well positioned to close out 2026 and now expect low double-digit services growth in 2027.”
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between 2025 and 2030
LEAP installed base expected to more than double
Source quote
“With the LEAP installed base expected to more than double between 2025 and 2030, our team focused on increasing capacity for the LEAP fan assembly.”
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through the end of the decade
airframe or order books are full
Source quote
“Shifting to slide five, given airframe or order books are full through the end of the decade, along with strong growth in aftermarket and defense, we're continuing to invest to ensure timely delivery for our customers.”
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2027
departures growth
Source quote
“And we do anticipate that we'll see departures growth in 2027.”
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over the next five years
LEAP and the NX more or less doubling
Source quote
“We see both LEAP and the NX more or less doubling here over the next five years.”