GE Aerospace raises 2026 profit forecast on services demand

GE Aerospace raised its 2026 profit forecast for the second time this year on Tuesday, October 20, as demand for engine maintenance and spare parts supported its outlook despite mounting fuel-cost pressure on airlines, Economic Times Markets reported.

The jet-engine maker now forecasts full-year adjusted earnings of $8.00–$8.10 per share, compared with its previous range of $7.65–$7.85. The revised range is above the $7.92 analyst consensus compiled by LSEG.

For the quarter through September, GE Aerospace reported adjusted earnings of $2.25 per share, ahead of Wall Street expectations of $2.01. Its shares gained nearly 1.2% in premarket trading.

Maintenance demand supports higher outlook

Quarterly revenue at the commercial engines and services division increased 21% to $10.34 billion, supported by aftermarket demand. The company also lifted its 2026 revenue-growth forecast for the division to the low-20% range, from about 20% previously.

Parts and services generate more than 70% of GE Aerospace's commercial engine revenue. Much of its engine shop-visit work for 2026 is already contracted, while spare-parts demand continues to exceed supply—factors the company says should limit any impact on services revenue and profit this year.

Chief executive Larry Culp said the company was increasing guidance across the board and expected commercial services growth in the low double digits in 2027, supported by a commercial services backlog exceeding $170 billion. That projection is an outlook, rather than a reported result.

Higher fuel costs remain a risk

The report linked rising jet-fuel costs to disruption of oil-shipping routes caused by the war in Iran. Airlines worldwide are reducing costs and capacity to protect ticket prices, creating a risk that fewer flights could eventually weaken maintenance demand.

GE Aerospace's current assessment is more resilient: finance chief Rahul Ghai said in September that the company had not seen changes in airlines' fleet plans and that the number of parked aircraft remained low.

Through CFM International, its joint venture with France's Safran, GE Aerospace is a leading engine supplier for narrowbody aircraft. It also has a substantial presence in the widebody engine market.