GE Aerospace reported adjusted earnings of $1.57 per share for the fourth quarter of 2025, beating consensus estimates by 10%. Full-year adjusted EPS reached $6.37, driven by a 20% year-over-year revenue increase to $11.9 billion in Q4. Services revenue surged 31% as airlines accelerated maintenance spending, and the unit delivered a record 1,800+ LEAP engines during the quarter, underscoring robust aftermarket demand.

Management raised its 2026 profit forecast above Wall Street projections, citing high-margin aftermarket parts and services as the primary driver. With airlines facing aircraft supply constraints, long-term service agreements and parts contracts are expected to deliver consistent cash flow. GE Aerospace also secured new engine orders and extended service contracts worth several billion dollars, reinforcing confidence in sustained profitability and capital returns.

Despite stellar fundamentals, GE Aerospace shares fell 6.2% following the earnings release, as some investors expressed concern over potential deceleration after extended outperformance. Options volume spiked to six times the typical level, with nearly 30,000 contracts traded in a single session. Short interest has declined by 16.6% over the past month, suggesting that bearish bets are unwinding, even as volatility remains elevated around upcoming guidance updates.