General Electric Co (NYSE:GE) stock fell 0.02% (As on January 23, 11:30:01 AM UTC-4, Source: Google Finance) after the company posted fourth quarter earnings that topped both profit and revenue estimates, but its shares came under pressure as investors weighed signs of slowing growth and a 2026 outlook that points to more moderate expansion than previously expected. Revenue from commercial engines and services, GE Aerospace’s core profit driver, grew about 24% year-over-year in the quarter, down from roughly 27% in the third quarter and more than 30% in earlier 2025 periods. Defense & Systems revenue grew 2% as price and customer mix more than offset deliveries down by 7%. Propulsion & Additive Technologies revenue grew 33% led by higher volume at Avio Aero. Free cash flow rose 24% to $7.7 billion, supported by strong order momentum, with total orders reaching $66.2 billion, up 32%.
Moreover, during the quarter, the company expanded Commercial Engines & Services (CES) to include Technology & Operations (T&O) and be led by Mohamed Ali. Created Commercial Sales & Customer Experience, led by Jason Tonich, elevating customer driven focus. The company has increased material input from priority suppliers more than 40% year-over-year in 2025. This contributed to fullyear CES services revenue up 26% and engine deliveries increasing 25% year-over-year, including record LEAP deliveries up 28%. Full-year Defense deliveries were up 30% year-over-year.
GE in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.57, beating the analysts’ estimates for the adjusted earnings per share of $1.43. The company had reported the adjusted revenue growth of 20 percent to $12.7 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $11.2 billion. Orders rose 74% during the period, reflecting continued strength in spare parts and services tied to commercial aviation. The company has benefited from sustained demand for air travel even as supply-chain constraints and tariffs imposed by President Donald Trump have weighed on the broader aerospace industry.
Looking ahead, the company initiated full-year 2026 guidance that suggests continued growth, albeit at a slower rate than some investors had anticipated. GE Aerospace expects adjusted EPS of $7.10 to $7.40 in 2026 and free cash flow of $8 billion to $8.4 billion, with free cash flow conversion above 100%. Operating profit is projected at $9.85 billion to $10.25 billion. Adjusted revenue growth is expected to slow to the low double-digit range, below the 21% growth delivered in 2025.