GE Aerospace reported fourth-quarter earnings of $1.57 per share, outperforming the consensus estimate of $1.44 and up from $1.32 a year ago. Revenues rose 18% year-over-year, driven by robust engine services demand, lifting top­-line results to $11.3 billion versus $9.6 billion in the prior year. New orders continued to accelerate, with backlog growth of 22% supporting an increased production cadence for both commercial and defense engines.

Despite the better-than-expected results, the stock fell 6.2% on the day the report was released, breaking into negative territory for the month after slipping from its recent all-time high. Traders exchanged roughly 17,000 calls and 12,000 puts—around six times the typical volume—with the most active strike clustered around the weekly 315-strike call, indicating heightened short-term positioning and hedging ahead of management’s investor day.

Management raised its 2026 profit guidance above Wall Street consensus, citing continued strength in high-margin aftermarket parts and services as airlines prioritize maintenance spending amid aircraft supply constraints. Free cash flow is now expected to exceed $5 billion, up from prior guidance of $4.3 billion, while revenue growth for the year is forecast at 12%–14%, bolstered by long-term service agreements and a surge in defense engine orders.