**GE Aerospace Stock Drops Despite Strong Q4 Earnings and Positive Outlook for 2026**

GE Aerospace stock took a hit on Thursday, falling over 6%, even though the company reported strong fourth-quarter results and gave an optimistic forecast for 2026. Investors are worried that the company’s fast growth might be slowing down, which may have triggered the stock drop.

In the fourth quarter, GE Aerospace posted a net profit of $2.85 billion, or $2.40 per share. That’s up from $2.29 billion, or $1.75 per share, during the same period last year. Adjusted earnings per share came in at $1.57, beating analyst expectations by $0.14. Revenue also impressed, rising 20% year-over-year to reach $11.87 billion.

The company saw a major increase in new orders during the quarter. Total orders jumped 74% to $27 billion, and GE’s backlog of work now stands at around $190 billion. Orders in its commercial segment surged 76%, while defense orders climbed 61%, showing strong demand in both areas.

Revenue from commercial engines and services rose 24% to $9.46 billion, higher than the expected $8.95 billion. Revenue from defense and propulsion technology also went up 13%, hitting $2.84 billion and beating forecasts of $2.63 billion.

Looking ahead, GE Aerospace expects steady growth, but at a slower pace than before. For 2025, the company expects adjusted revenue to grow by 20.5%, reaching $42.3 billion. In 2026, that growth is expected to slow to low double digits. GE is forecasting full-year adjusted earnings between $7.10 and $7.40 per share for 2026—higher than most analysts predicted. The company also expects to generate adjusted free cash flow between $8 billion and $8.4 billion.

Breaking it down by business segment, commercial engines and services revenue is expected to grow in the mid-teens percentage range in 2026, down from 24% in 2025. Defense and propulsion revenue is expected to rise by a mid- to high-single-digit percentage, compared to 11.4% growth last year.

Despite the slowdown in growth projections, analysts like JP Morgan’s Seth Seifman still rate the stock positively. However, he warned that GE might face challenges expanding its profit margins in 2026 due to issues like the ramp-up of the GE9X engine program and changes in demand for spare parts.

GE Aerospace CEO Larry Culp remains confident about the future, saying the company is well-positioned for another strong year of earnings and cash flow growth. He pointed to continued strong demand for air travel, which drives the need for spare parts and maintenance services.

**Key Highlights:**

– **Q4 Profit:** $2.85 billion or $2.40 per share
– **Adjusted EPS:** $1.57 (beat expectations by $0.14)
– **Revenue:** Up 20% year-over-year to $11.87 billion
– **Orders:** Total orders rose 74% to $27 billion; backlog at ~$190 billion
– **2026 Forecast:** Earnings of $7.10–$7.40 per share; free cash flow of $8–$8.4 billion
– **Growth Outlook:** Slower growth expected in both commercial and defense segments

Even with slower growth ahead, GE Aerospace continues to benefit from strong industry trends and global demand for aviation services, making it a company to watch closely in the coming years.