Oct 20, 2026 earnings call — Raised guidance after strong services momentum
Raised 2026 revenue growth guidance to 19%-20%.
Revenue $14.1B (est $12.9B) · EPS $2.25 (est $2.01)
Key quotes
"Combined with our backlog of over $170 billion, we are well-positioned to close out 2026 and now expect low double-digit services growth in 2027."
"At Celma, our largest MRO site, the team developed an AI-enabled tool to automate collection of technical records required for each CFM56 shop visit. This helped decrease record processing time by around 25%."
"Taken together, we are raising our EPS guidance to a range of $8-$8.10, up $0.30 at the midpoint."
Analyst Q&A 10
services outlook and airline fuel impact
Q (Doug Harned · Bernstein): How should we expect services and growth over the next few years given high fuel prices and airline profit pressures? He asked about shop visit backlogs and parts availability, especially for GE90 and CFM56.
A: GE Aerospace says the environment is dynamic but they are close to airlines and helping keep planes flying. They expect low to mid-single digit growth in the installed base and see LEAP and the GEnx roughly doubling over the next five years. They said the 2027 view is driven by backlog and cycles already flown, and they are focused on supporting airlines and improving turnaround times.
"We know that, excuse me, we are well-positioned to deliver low to mid-single digit growth in the installed base." — Larry Culp (CEO·CHAIR)
widebody shop visit growth detail
Q (Scott Deuschle · Deutsche Bank): Can you describe internal shop visit revenue growth for the widebody portfolio this quarter, and were there any limits to stronger widebody growth?
A: Management said overall demand for widebody shop visits remains very strong with low retirements and growing work scopes, especially as GE90 moves to second shop visits. They noted widebody performance was strong but overall shop visit revenue was partially offset by customer mix skewed to long-term service agreements and by LEAP being an earlier-stage fleet.
"The overall demand for widebody shop visits remains really strong." — Rahul Ghai (CFO)
delinquencies and order trends
Q (Myles Walton · Wolfe): Should we expect delinquencies to affect CES service orders going forward, and will delinquency burn down or stay at current levels as you target low double-digit growth in 2027?
A: They said CES orders were strong, up 23% in the quarter and backlog supports confidence in guidance. They enter the fourth quarter with about 95% of revenue in backlog and noted delinquency rose slightly even as material availability improves; management said they want to reduce delinquency while growing backlog.
"We are entering the fourth quarter with about 95% of our revenue in our backlog, which has been consistent." — Rahul Ghai (CFO)
9X mid-seal timing and GEnx ramp
Q (Sheila Kahyaoglu · Jefferies): Did 9X timing shift (mid-seal certification) help Q3 widebody equipment sales, and where is GEnx production ramp relative to 787 deliveries?
A: They said they have delivered engines with the upgraded 9X mid-seal to Boeing since August and are aiming for certification of the upgraded mid-seal by year-end, subject to FAA approval. For GEnx, deliveries more than doubled year-over-year, they delivered more than 50 engines to Boeing in the quarter with monthly improvement, and Boeing has more than 30 ship sets on and off wing as engine deliveries have outpaced aircraft deliveries.
"With respect specifically to the mid-seal, we've been delivering engines to Boeing with the upgraded mid-seal since August." — Larry Culp (CEO·CHAIR)
orders vs revenue conversion
Q (Seth Seifman · JPMorgan): How should investors think about the relationship between orders and sales, and how do shop visits drive orders and future revenue timing?
A: They said much of the recent order growth came from CFM56 spare parts sales as retirements trended lower than expected, and shop visits are expected to be closer to 2,400 cycles. They said orders typically convert to revenue in the six to nine-month timeframe but conversion has been longer recently; services orders and revenue are converging and the backlog plus expected removals in early next year support the outlook.
"If you look at the orders where we are getting the orders growth, a lot of orders growth in CFM56 in the quarter on the spare parts sales." — Rahul Ghai (CFO)
customer behavior and work scopes
Q (Kristine Liwag · Morgan Stanley): With high oil prices, are customers becoming more price sensitive, choosing lower work scopes, or still maximizing time on wing for incremental engines beyond backlog?
A: Management said airline behavior and the operational pipeline indicate they are preparing for the long term and want readiness; parked aircraft and retirements are down sequentially. They said widebody work scopes are increasing, CFM56 narrowbody work scopes are driven by life-limited parts and not easing, and LEAP work and shop visit revenue will continue to grow as the fleet matures.
"In fact, LEAP shop visit revenue on a dollar per shop visit is kind of half that of CFM56, just given how early it is in its life cycle." — Rahul Ghai (CFO)
CFM56 retirement outlook
Q (John Godyn · Citi): Given retirements are much lower than prior expectations, how should we think about CFM56 retirement rates from here? Can they snap back quickly?
A: They noted the CFM56 fleet is still relatively young with two-thirds not yet through a second shop visit, and retirements usually pick up after 20 years of age. They said retirements are trending below prior modeled levels this year and a step-up in 2027 is prudent to model, while power-gen opportunities should add spare-parts revenue and be a positive to CFM56 revenue.
"Right now, we're trending below that level, and I think that's probably where we're going to end up." — Larry Culp (CEO·CHAIR)
2027 puts and takes on margins
Q (David Strauss · Wells Fargo): What are the main drivers and offsets (puts and takes) for where 2027 lands on revenue and margins, considering services, DPT, OE, and 9X?
A: They said they will give a fuller 2027 guide in January but are mindful of their 2026 progress on cash and profit. They expect services low double-digit growth with flat services margins, DPT high single-digit growth, OE growth and 9X ramp to be a roughly $300 million year-over-year headwind, and overall they expect 2027 margins to stay in line with 2026 while margins should expand in 2028 as 9X headwind recedes and LEAP margins rise.
"But given where we are in the cycle and given the environment, maintaining some level of conservatism is in our low double-digit number for next year." — Rahul Ghai (CFO)
LEAP vs CFM56 shop visit growth
Q (Noah Poponak · Goldman Sachs): Can you quantify LEAP shop visit growth and CFM56 shop visit growth for 2026 and 2027 to show the narrowbody transition shape?
A: They said CFM56 shop visits are largely flat in the 2,300 to 2,400 range with maybe a little growth toward the higher end in 2027. For LEAP, they did not give a shop-visit count but said LEAP shop visits grew about 40% in the quarter, were strong in the first half (more than 50% growth in first half), and they expect LEAP shop visits to trend toward about a 25% CAGR to 2030, with 2027 LEAP growth perhaps around 25% to 26%.
"On CFM56, Noah, I would think that it is largely flat." — Rahul Ghai (CFO)
CPP partnership and enhanced cooling
Q (Gavin Parsons · UBS): Can you explain the CPP enhanced cooling work and its implications, since engines have been running hotter for years?
A: They said the CPP move is to create capacity and to partner on development and manufacturing for next-gen airfoils, supporting both GE and others. It is early in development with about 3,000 endurance cycles done, regulatory work to complete, and potential time-on-wing benefits are not yet included in their 2027 or longer-term outlook; customer feedback and internal excitement about the partnership are positive.
"I would say our focus remains clear: deliver for customers, improve time on wing, and lower cost of ownership." — Larry Culp (CEO·CHAIR)