GE Aerospace posted a strong first quarter but the stock fell anyway — a familiar pattern for a company where the bar keeps rising.
GENERAL AEROSPACE $GE Q1’26 EARNINGS HIGHLIGHTS
Revenue: $11.61B (Est. $10.69B)
FY Guide:
— Wall St Engine (@wallstengine) April 21, 2026
EPS came in at $1.86, up 25% from a year ago, well ahead of the $1.60 Wall Street had penciled in. Revenue reached $11.6 billion, up 29%, versus estimates of $10.7 billion. Orders were the standout line: commercial orders surged 93% year over year to $17.3 billion, while defense orders climbed 67% to $6.2 billion.
Despite the beat, GE stock opened lower on Tuesday, trading around $293.10, a decline of about 3.5%. It had risen as much as 2.4% in premarket trading right after results dropped before reversing.
CEO Larry Culp said the company is “trending toward the high end” of its full-year guidance range of $7.10 to $7.40 per share, pointing to a “strong start to the year.” Wall Street is currently modeling $7.46.
The caution in GE’s updated guidance reflects a changed macro backdrop. Following the outbreak of conflict with Iran, benchmark oil prices for 2028 are now around $10 per barrel higher than before the fighting started. Jet fuel costs have risen as a result, and availability is expected to be tight in the near term.
GE’s guidance now assumes Brent crude stays elevated through the third quarter before easing by year-end. It does not factor in a global recession.
Perhaps more telling, GE cut its flight departure growth estimate for 2026 to flat-to-low-single digits from mid-single digits. Departures drive engine wear, and engine wear drives GE’s lucrative services business. Still, the company expects only limited impact on services revenue this year, given that most of its 2026 maintenance workload is already locked in under long-term contracts.
GE also noted that demand for spare parts is running ahead of supply, with most inventory committed through the current quarter.
The defense segment held up well. Defense & Propulsion Technologies posted $3.2 billion in sales, up 19% year over year — ahead of the 13% growth seen in the fourth quarter. Defense was about 28% of total revenue in Q1.
The commercial side grew faster, up 34% year over year, though operating margins dipped around 2 percentage points to 26.4%. The drop reflects a higher mix of new engine deliveries, which carry thinner margins than the aftermarket parts and services business.
Boeing and Airbus continue to sit on backlogs stretching years into the future. Persistent production constraints at both manufacturers mean airlines are holding onto older aircraft longer, which directly supports demand for GE’s engine maintenance services.
GE’s own supply chain showed gradual improvement in the quarter, with engine deliveries rising on better material availability.
The stock hit a 52-week high in February. It had already given back 11% from that peak before earnings, reflecting investor concern over Middle East tensions and rising fuel costs. It lost further ground Tuesday after the results.
RBC analyst Ken Herbert, in a preview note, had described near-term risk to GE’s commercial services business from Middle East travel disruptions as “limited.”
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