GE Aerospace reported fourth-quarter adjusted earnings of $1.57 per share, surpassing consensus estimates of $1.44 and up from $1.32 a year earlier. Quarterly revenue climbed to $11.2 billion, a 13% increase from the prior-year period and above the $9.9 billion recorded in Q4 2024. The results were driven by robust commercial engine shipments and a 19% jump in defense segment sales, reflecting higher deliveries of F414 and F110 engines to international military customers.

Despite the beat, the shares fell 6.2% on the day, erasing early-month gains and moving into negative territory for January. Options traders turned active, exchanging roughly 17,000 calls and 12,000 puts — about six times the average volume for this point in the session. The most traded position was the February 320-strike put, while new positions also opened in weekly calls with strikes near 315. Short interest declined by 16.6% over the past month, though the days-to-cover ratio remains above three days, suggesting continued hedging by bearish investors.

For full-year 2026, management forecast profit above the consensus target, citing sustained demand for high-margin aftermarket parts and long-term service agreements. Airlines facing tight aircraft supply chains are prioritizing maintenance spending, lifting the company’s services backlog by 24% year-over-year to $62 billion. Major orders include Delta’s selection of GEnx engines for 30 Boeing 787-10 aircraft, with options for 30 more, plus integrated spare engines and multi-year support contracts. GE Aerospace also reiterated its plan to generate free cash flow in excess of $7 billion, leveraging its robust service network to drive margin expansion.