GE Aerospace Shares Slide 6.2% to $298.71 After Q4 Beat
GE Aerospace shares fell 6.2% to $298.71 despite beating fourth-quarter earnings and revenue estimates and reaffirming its full-year outlook. Options volume surged sixfold to 29,000 contracts led by February 320 puts and weekly 315 calls, while short interest declined 16.6% over the past month.
1. Strong Q4 Results Driven by Engine Services
GE Aerospace reported fourth-quarter earnings of $1.57 per share, topping the consensus estimate of $1.44 and marking a year-over-year increase of 19%. Total revenues rose 18% from the prior year to $11.5 billion, led by robust demand for engine services which grew 22% sequentially. The division booked $12.2 billion of new orders during the quarter, supported by both commercial and defense aftermarket agreements, lifting the company’s book-to-bill ratio above 1.05 for the first time since 2023.
2. Upgraded 2026 Outlook on Aftermarket Strength
Following the quarter, GE Aerospace raised its full-year 2026 profit guidance above analyst forecasts, driven by high-margin aftermarket parts and maintenance services. Management now expects revenue growth of 12% to 14% year over year, up from prior projections of 10% to 12%, and anticipates free cash flow exceeding $6.5 billion. The company highlighted a major contract with a leading global carrier—30 GEnx engine orders with long-term services support—as evidence of sustained aftermarket pricing power and long-cycle order visibility.