A month has gone by since the last earnings report for GE Aerospace (GE Quick QuoteGE - Free Report) . Shares have added about 8.6% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is GE due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for GE Aerospace before we dive into how investors and analysts have reacted as of late.

GE Aerospace Q1 Earnings & Revenues Beat Estimates, Rise Y/Y

GE Aerospace posted first-quarter 2026 adjusted earnings of $1.86 per share, which increased 25% year over year and beat the Zacks Consensus Estimate of $1.61 by 15.5%.

Total revenues were $12.4 billion, reflecting a year-over-year increase of 25%. Adjusted revenues came in at $11.61 billion, which rose 29% year over year and surpassed the consensus mark of $10.64 billion by 9.1%. Results were supported by stronger commercial services activity, while management cited a $170 billion commercial services backlog that helps underpin demand visibility.

Orders Jump as Commercial Activity Accelerates

In the first quarter of 2026, GE’s total orders climbed 87% year over year to $23 billion. Commercial wins included agreements for more than 650 engines, featuring commitments tied to LEAP-1A and GEnx platforms, alongside a long-term materials agreement to support Ryanair’s fleet of about 2,000 CFM56 and LEAP engines.

Operationally, GE pointed to progress under its FLIGHT DECK lean model, including supplier improvements that contributed to commercial services revenues rising 39% year over year. Total engine deliveries increased 43% from the prior-year quarter, indicating better throughput as the company works through customer demand.

CES Growth Fueled by Shop Visits and Parts

Commercial Engines & Services (CES) revenues rose 34% year over year to $8.92 billion in the first quarter of fiscal 2026. The gain was driven by the services growth of 39%, with internal shop visit revenues up 35% on higher volume and workscopes. Spare parts revenues increased more than 25%, reflecting robust aftermarket demand.

Equipment revenues in CES advanced 20%, supported by unit volume growth of 50% that was partly offset by customer mix. Segment operating profit increased 23% to $2.36 billion, though the operating margin narrowed 230 basis points to 26.4% as install engine growth, including GE9X, and investments weighed on mix. Total orders in the segment rose 93% year over year to $17.3 billion.

Defense Segment Adds Volume and Pricing Support

Defense & Propulsion Technologies revenues increased 19% year over year to $3.2 billion in the first quarter of 2026. Management highlighted momentum in Defense & Systems and Propulsion & Additive Technologies, with Defense & Systems revenues up 14% on growth in both services and equipment, including unit deliveries rising 24%. 

Propulsion & Additive Technologies revenues grew 29%, led by Avio Aero. The segment’s operating profit rose 17% to $379 million. The operating margin edged down 20 basis points to 11.8%, as mix, investments and inflation offset some of the benefits from higher volume and pricing. Total orders for the segment advanced 67% year over year to $6.17 billion.

Margin Profile

GE Aerospace’s cost of sales (comprising costs of equipment and services sold) surged 32% year over year at $7.9 billion. Selling, general and administrative expenses increased 23.7% year over year to $1.08 billion. Research and development expenses totaled $440 million, reflecting a year-over-year rise of 22.6%.

In the first quarter, the company’s operating profit increased 18% year over year to $2.53 billion, while operating profit margin contracted 200 basis points to 21.8%. In the first three months of 2025, GE’s cash from operating activities rose 21% to $1.87 billion. Free cash flow increased 14% to $1.66 billion, indicating continued cash conversion despite higher activity levels.

Balance Sheet & Cash Flow

GE ended the quarter with cash, cash equivalents and restricted cash of $10.98 billion. Total borrowings were $20.3 billion, comprising $2.1 billion of short-term borrowings and $18.2 billion of long-term borrowings.

During the quarter, GE repurchased 7.2 million shares for $2.2 billion, underscoring its capital return posture alongside investment needs.

Outlook

For full-year 2026, GE maintained its prior outlook while noting it is trending toward the higher end of the range.

The company continues to expect adjusted revenues to grow in the low-double-digit range from the year-ago period's actual. Operating profit is estimated to be in the band of $9.85-$10.25 billion. Adjusted earnings are predicted to be in the range of $7.10-$7.40 per share. The free cash flow is anticipated to be in the band of $8.0-$8.4 billion, with the conversion rate projected to be more than 100%.

GE Aerospace expects the Commercial Engines & Services segment’s revenues to grow in the mid-teens range, whereas operating profit is anticipated to be in the band of $9.60-$9.90 billion. For the Defense & Propulsion Technologies segment, revenues are projected to increase in the mid-to-high single-digit range, whereas operating profit is anticipated to be in the band of $1.55-$1.65 billion.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

At this time, GE has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, GE has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.