GE Stock Slides Despite Higher Guidance As Costs Rise, Insurance Business Swings To A Loss: CEO Says Company Continues To ‘Build Momentum’

• GE’s orders rose 49% to $19.0 billion, while commercial services revenue increased 23% year-over-year.
• The company raised its 2026 adjusted EPS forecast to 8.00-8.10 and increased its operating profit and free cash flow outlooks.
• In 2027, GE said it expects commercial services revenue to grow at a low-double-digit rate.

GE Aerospace (GE) shares fell in early morning trade on Tuesday after the company beat third-quarter estimates and raised its 2026 outlook, marking at least the fourth consecutive time that the stock has dropped on a beat. 

“We delivered strong results this quarter as solid demand drove orders up 49%,” CEO H. Lawrence Culp Jr. said. He said the company continues to “build momentum.”

GE Aerospace reported adjusted earnings per share of (EPS) was $2.25, above the $2.01 consensus estimate on Koyfin. Revenue came in at $13.3 billion, against Wall Street’s forecast of $12.88 billion. Orders rose 49% to $19.0 billion, and commercial services increased 23% year-over-year.

GE stock edged 1.7% lower in pre-market trade on Tuesday amid weakness in the broader market. 

GE Aerospace Raises 2026 Outlook On Strong Demand

The company also hiked its outlook for 2026, forecasting adjusted EPS of $8.00 to $8.10, up from $7.65 to $7.85. 

It increased its operating profit guidance to $10.9 billion to $11.0 billion from $10.55 billion to $10.75 billion, and its free cash flow guidance rose to $9.1 billion to $9.4 billion from $8.9 billion to $9.2 billion. 

In 2027, GE said it expects commercial services revenue to grow at a low-double-digit rate, backed by a commercial services backlog above $170 billion.

Why Is GE Stock Falling Despite The Earnings Beat?

Several cost pressures and weaker cash flow may help explain the muted market reaction. Sales discounts and allowances increased by $1.56 billion, primarily because of higher allowances for new engine installations and spare parts, as well as product durability reserves in the commercial engines and services business.

Margins in that business fell 10 basis points, reflecting product mix and inflation. Free cash flow declined 14% to $2.0 billion.

GE Aerospace’s insurance operations also reported a $210 million pretax loss, compared with a profit of $363 million a year earlier. The company said it expects supply chain constraints to continue affecting production and customer deliveries, while inflationary pressures are expected to persist.

How Is Retail Feeling About GE Stock?

On Stocktwits, retail sentiment around GE Aerospace rose to ‘extremely bullish’ from ‘bullish’ territory over the past day. 

Retail traders on the platform agreed that the company had posted a positive report, but were divided on how GE stock would react once markets opened.

GE stock has fallen around 3% this year, not accounting for the pre-market dip. 

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