『General Electric Q3 2026 Earnings Analysis』のカバーアート

General Electric Q3 2026 Earnings Analysis

General Electric Q3 2026 Earnings Analysis

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we take the dense stuff from earnings calls and turn it into something you'd actually want to listen to. I'm Alex.

**JORDAN:** And I'm Jordan. And Alex, before we get into today's company, we gotta say this.

**ALEX:** Right. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Okay, with that out of the way — today we're talking GE Aerospace, ticker GE, Q3 2026 results, reported October 20th.

**ALEX:** And Jordan, I'll just say it — this was a genuinely blowout quarter. Orders up 49% company-wide. Revenue up 18%. Operating profit up 30%. EPS up 36%. If you're an investor in this name, that's about as clean a sweep as you can ask for.

**JORDAN:** It really is. And the engine — pun intended — behind all of it is their Commercial Engines and Services segment, CES. Orders there were up 58%. Services orders alone, up 23% in the quarter, 30% year-to-date. That's the sixth straight quarter of at least 20% revenue growth in that segment.

**ALEX:** Six quarters! That's not a blip, that's a trend. And it's being driven by this massive backlog — over $170 billion now. CEO Larry Culp talked about the Farnborough Airshow where they locked in commitments for more than 1,800 engines, including that IndiGo deal — the largest LEAP engine agreement ever, over 1,000 engines for their A320neo fleet.

**JORDAN:** And just last week, before this call even happened, they announced Turkish Airlines — over 300 LEAP-1B engines plus a long-term service deal covering their entire 600-plus engine fleet. So the order book just keeps stacking up.

**ALEX:** Let's talk numbers a bit more. CFO Rahul Ghai broke down margins — 22.5% operating margin, up 220 basis points year-over-year. Free cash flow came in over $2 billion for the quarter, $6.7 billion year-to-date, which is 105% conversion of earnings into cash. That's a really healthy number.

**JORDAN:** And because of all this strength, they raised full-year 2026 guidance across the board. Revenue growth now expected at 19-20%, up from high teens. EPS guidance bumped to $8 to $8.10, up 30 cents at the midpoint. Free cash flow guidance raised to $9.1 to $9.4 billion.

**ALEX:** And here's the one that really jumped out to me — they gave an early look at 2027, guiding to low double-digit growth in commercial services. That's based on the sheer size of that backlog and engines that are already flying and will need shop visits.

**JORDAN:** Right, and this is where it gets interesting operationally. They're using something called "Flight Deck" — their lean operating system — to attack bottlenecks. One example: they reoriented a LEAP fan assembly production line and more than doubled output just through better workflow design, not new equipment.

**ALEX:** And there's an AI angle too, which feels very on-brand for 2026. At their Celma MRO site in Brazil, they built an AI tool to automate technical records collection for CFM56 engine shop visits — cut processing time by about 25%.

**JORDAN:** That stuff matters more than people realize. Turnaround times on shop visits are down over a week since the end of last year, LEAP specifically down two weeks. And probably the headline operational win — LEAP-related grounded aircraft, the AOG number, is down to near zero since summer. That's been a persistent pain point for airlines, so that's a real customer-facing win.

**ALEX:** Big strategic news too — the agreement to acquire Consolidated Precision Products, or CPP. This is about securing capacity for mission-critical castings industry-wide, and also accelerating next-gen engine cooling technology. Culp mention

This episode includes AI-generated content.
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