GE Aerospace Soars in Q1 2026: Strong Orders and Revenue Growth Amidst Geopolitical Uncertainty
GE Aerospace kicked off 2026 with a bang, posting an impressive 87% increase in orders for the first quarter. The company's Chairman and CEO, Larry Culp, took to the stage during the Q1 earnings conference call to share the company's robust performance.
With a strong focus on safety amidst the ongoing conflict in the Middle East, GE Aerospace demonstrated its commitment to supporting its teams and customers globally. The company's 57,000 employees take pride in their work, with nearly 1 million people currently flying with their technology under wing.
The numbers don't lie: orders were up a staggering 87%, with Commercial Engines Services (CES) nearly doubling and Defense and Power Technologies (DPT) growing by an impressive 67%. Revenue increased by 29%, driven by CES services and double-digit growth in DPT. Operating profit grew 18% with both segments seeing significant gains, while earnings per share (EPS) rose 25% to $1.86.
GE Aerospace's Flight Deck enabled the company to improve output once again, with commercial services revenue up 39% and total engine deliveries increasing by 43%. The company continues to invest heavily in improving time on wing and lowering cost of ownership for its customers across its current fleet and next-generation technologies.
Culp took a moment to express his gratitude to the GE Aerospace team and supplier partners for their unwavering commitment to delivering for customers. He then turned to slide 4, where he shared insights into the company's current operating environment.
Global departures were up low single digits in Q1, including a high single-digit decline in the Middle East, which accounts for roughly 5% of global departures. Given this backdrop, GE Aerospace is revising its full-year departures outlook from mid-single-digit growth to flat to low single-digit growth. This includes a low double-digit decline in the Middle East for the year and modest reductions to other regions.
The company's CFO, Rahul Ghai, emphasized that the impact on services will likely lag changes in air traffic demand by several quarters, followed by a period of above-average growth. GE Aerospace is well-positioned to navigate cycles, with its robust backlog providing resilience through changes in air traffic.
The company has a young and diverse fleet, with leading programs in both narrow body and wide body aircraft. For the CFM56 program, about two-thirds of the fleet remains yet to undergo a second shop visit, while utilization remains stable, supporting continued demand. GE Aerospace's defense business is also thriving, with its engines powering a range of military aircraft.
GE Aerospace's commercial services business boasts a robust backlog of over $170 billion, up nearly $30 billion since the end of 2024. Orders for commercial services increased by over 30% in Q1, with spare parts demand remaining strong at around 40% of services revenue. As a result, spare parts delinquency has risen roughly 70% since the end of 2024 due to material availability constraints.
