GE Aerospace (NYSE:GE) posted fourth quarter earnings that topped both profit and revenue estimates, but its shares came under pressure as investors weighed signs of slowing growth and a 2026 outlook that points to more moderate expansion than previously expected.
For Q4, GE Aerospace posted adjusted earnings per share of $1.57, topping the consensus estimate of $1.43 by $0.14.
GAAP revenue rose 18% year over year to $12.7 billion, exceeding Wall Street expectations of about $11.2 billion. Adjusted revenue was $11.9 billion, up 20% from a year earlier.
Despite the headline beat, investor reaction was tempered by evidence that growth is decelerating. Revenue from commercial engines and services, GE Aerospace’s core profit driver, grew about 24% year-over-year in the quarter, down from roughly 27% in the third quarter and more than 30% in earlier 2025 periods.
Total company revenue growth of 18% also represented a step down from the roughly 20%-plus pace seen across full-year 2025.
For the full year, GE Aerospace reported GAAP revenue of $45.9 billion, up 18%, and adjusted revenue of $42.3 billion, up 21%. Adjusted EPS for 2025 came in at $6.37, a 38% increase from the prior year.
Free cash flow rose 24% to $7.7 billion, supported by strong order momentum, with total orders reaching $66.2 billion, up 32%.
Looking ahead, the company initiated full-year 2026 guidance that suggests continued growth, albeit at a slower rate than some investors had anticipated.
GE Aerospace expects adjusted EPS of $7.10 to $7.40 in 2026 and free cash flow of $8 billion to $8.4 billion, with free cash flow conversion above 100%.
Operating profit is projected at $9.85 billion to $10.25 billion. Adjusted revenue growth is expected to slow to the low double-digit range, below the 21% growth delivered in 2025.
“With a strong fourth quarter, GE Aerospace delivered an outstanding year as revenue grew 21%, EPS was up 38%, and free cash flow conversion exceeded 100%,” GE Aerospace CEO Larry Culp said in a statement. “Our performance demonstrates how FLIGHT DECK is taking hold as we accelerated services and equipment output to fulfill our growing backlog of roughly $190 billion."
Shares of GE fell almost 5% to about $303 shortly after markets opened on Thursday.