GE Aerospace reported adjusted fourth-quarter earnings of $1.57 per share, beating consensus estimates by 10%. Quarterly revenue rose 20% year over year to $11.9 billion, driven by a 31% surge in service revenues and record LEAP engine deliveries exceeding 1,800 units. Full-year adjusted EPS reached $6.37, reflecting widening operating margins that expanded by 150 basis points compared with the prior year.

Management raised its 2026 profit forecast above Wall Street projections, citing sustained demand for high-margin aftermarket parts and services as airlines prioritize maintenance spending amid aircraft supply constraints. Free cash flow is expected to improve by 12% next year, supported by $3 billion in anticipated cost savings from productivity initiatives and a target operating margin of 18% in the core aerospace segment.

Following the Q4 release, GE’s share price retraced by 5% in January, a move described by analysts as a classic sell-the-news setup. Short interest has declined by 16.6% over the last month, while options volume surged to six times its average, with put-call activity focused around strikes near $315. Some strategists argue the stock remains fully valued near the $300 level, whereas others see the pullback as an attractive entry on the way to higher price targets around $365.