GE Aerospace GE is witnessing solid momentum in its Commercial Engines & Services segment. The company continues to experience robust orders for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities.
CFM International (the 50/50 joint venture between GE and Safran Aircraft Engines) recently secured major agreements for its LEAP engines, including more than 1,000 LEAP-1A engines for IndiGo’s Airbus A320neo fleet and more than 300 LEAP-1B engines for Turkish Airlines. The latter deal also included a long-term service agreement covering more than 600 LEAP-1B engines.
Apart from this, GE Aerospace secured GEnx engine orders from United Airlines and Delta Air Lines for their Boeing 787 Dreamliners, while CFM International extended its partnership with American Airlines for LEAP engine deliveries. CFM International also entered into a Memorandum of Understanding with IndiGo for delivery of more than 1,000 LEAP-1A engines.
Driven by strength across its business, revenues from the Commercial Engines & Services segment increased 21% year over year to $10.3 billion in third-quarter 2026. Services revenues increased 17%, driven by a 12% rise in internal shop visit revenues on higher volumes, including more than 40% growth in LEAP activity, and expanded workscopes. Spare parts revenues grew more than 20%.
Equipment revenues in the segment advanced 38%, supported by engine delivery growth of 8%, including a 5% increase in LEAP deliveries. Total orders in the segment rose 58% year over year to $15.3 billion. For 2026, adjusted revenues from the Commercial Engines & Services segment are expected to grow in the low-20% range, supported by strong services revenues.
GE's Peers in the Aerospace Market
Among its major peers, Howmet Aerospace Inc. HWM is benefiting from persistent strength in the commercial aerospace market. Revenues from Howmet’s commercial aerospace market increased 32% year over year in the third quarter of 2026, constituting 54% of its business. Growth reflected stronger demand for aircraft engine components and spare parts, supported by increasing aircraft production activity.
RTX Corporation RTX is also witnessing solid momentum in the commercial aerospace market, driven by broad-based growth in the aftermarket vertical. RTX reported 12% organic sales growth in the third quarter, driven by solid momentum in the Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies bode well for RTX Corp.’s growth.
GE's Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research
Shares of GE Aerospace have gained 12.6% in the past six months against the industry’s 6.8% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 34.67X, above the industry’s average of 28.75X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 earnings has gone up 3.4% over the past 60 days.
The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GE Aerospace (GE): Free Stock Analysis Report
Howmet Aerospace Inc. (HWM): Free Stock Analysis Report
RTX Corporation (RTX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).