GE Aerospace (NYSE:GE) reported first-quarter 2026 results on Tuesday, with shares trading lower following the release. The company beat analyst expectations on both earnings and revenue.

Strong Earnings And Revenue Growth

Adjusted EPS was $1.86, exceeding the $1.60 estimate, while revenue of $12.4 billion topped the $10.72 billion estimate. GAAP EPS was $1.83, flat year over year, while adjusted EPS increased 25%.

Total revenue rose 25% to $12.4 billion, with adjusted revenue up 29% to $11.6 billion. GAAP profit declined 2% to $2.2 billion, with margins contracting to 17.7%.

Adjusted operating profit increased 18% to $2.5 billion, while operating margin declined to 21.8%. Operating cash flow rose 21% to $1.9 billion, and free cash flow increased 14% to $1.7 billion.

Orders, Backlog And Operational Strength

Orders surged 87% to $23.0 billion, reflecting strong demand across segments. The company reported a $170 billion backlog in commercial services, providing long-term visibility. Total engine deliveries increased 43% year over year.

CEO H. Lawrence Culp, Jr. said, “GE Aerospace had a strong first quarter with orders growing 87% and revenue up 29% supporting double-digit growth in earnings and free cash flow.”

“Our young and diverse fleet coupled with a $170 billion commercial services backlog positions us well to navigate the current operating environment. With the dynamic geopolitical landscape, we’re holding our full-year guidance across the board and are trending toward the high-end of the range given our strong start to the year,” Culp added.

Commercial Engines & Services Performance

Commercial Engines & Services revenue rose 34% to $8.9 billion, with orders increasing 93% to $17.3 billion. Operating profit grew 23% to $2.4 billion, while margins declined to 26.4%.

Services revenue increased 39%, while equipment revenue rose 20% on 50% higher unit volume.

The segment recorded charges of approximately $(30) million related to long-term service agreements, including a reversal of about $100 million of a prior tariff-related charge.

Defense Segment And Strategic Wins

Defense & Propulsion Technologies revenue increased 19% to $3.2 billion, with orders up 67% to $6.2 billion. Operating profit rose 17% to $379 million, while margins edged down to 11.8%. Deliveries increased 24%.

During the quarter, GE Aerospace secured commercial commitments for more than 650 engines, including agreements with American Airlines, United Airlines, and Delta Air Lines, and signed a long-term materials agreement with Ryanair.

The company also announced defense contracts with the U.S. Marine Corps and U.S. Air Force, and plans to invest $1 billion in U.S. manufacturing and suppliers.

Outlook And Guidance

GE Aerospace reaffirmed full-year 2026 adjusted EPS guidance of $7.10 to $7.40, below the $7.49 estimate, and said it is trending toward the high end.

The company expects adjusted revenue growth of low double digits, operating profit of $9.85 billion to $10.25 billion, and free cash flow of $8.0 billion to $8.4 billion.

Guidance assumes elevated oil prices through the third quarter, reduced global GDP estimates, and flat to low-single-digit departures growth, and does not assume a global recession.

Earnings Call Highlights

On the earnings call, GE Aerospace executives struck an upbeat tone on near-term operating momentum while acknowledging a more uncertain macro backdrop.

Management made clear that the conflict in the Middle East is the biggest near-term external variable. Culp said, “We’re hopeful for a peaceful resolution, we’re also embracing today’s reality.”

He added that the company’s base case assumes “the conflict and its effects continue through the summer.” Because of that, GE cut its departures outlook and is taking a more cautious view on the back half of the year.

Culp said the company would likely have raised guidance if not for the conflict in the Middle East, while CFO Rahul Ghai said first-quarter results came in about $300 million ahead of internal expectations.

Management said a commercial services backlog of more than $170 billion, along with strong spare-parts and shop-visit visibility, should help cushion any near-term slowdown in flight activity.

Still, executives kept full-year guidance unchanged, citing limited visibility into the second half and the risk that geopolitical tensions, fuel pressures and softer departures could delay, rather than destroy, aftermarket demand.

The company also said supply chain conditions are improving, though parts availability remains tight and delinquency levels are still elevated.

GE Price Action: GE Aerospace shares were down 4.62% at $289.58 at the time of publication on Tuesday, according to Benzinga Pro data.

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