One Unsettled Question Sits Under GE Aerospace Stock

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GE Aerospace (GE) stock trades at 34.0 times earnings, against 23.0 for the S&P 500. That price appears to assume its jet engine service business keeps growing fast. For that to happen, most of the growth has to come from repair work on its newer LEAP engines, because shop visits for the older CFM56 engines are largely flat. Investors do not yet know whether LEAP repair work can grow fast enough.

GE’s LEAP Repairs Grow Fast, Earn Half As Much

LEAP shop visits are rising quickly, but each one is worth less to GE Aerospace than a CFM56 visit. LEAP shop visits grew about 40% in the third quarter of 2026. CFM56 visits remain largely flat at a yearly level that management puts in a range of 2,300 to 2,400. Because the LEAP fleet is so early in its life, management said a LEAP shop visit brings in about half the revenue of a CFM56 visit.

GE therefore needs roughly two LEAP visits to bring in what one CFM56 visit does. During the October 20, 2026 call, analysts asked about the 2026 and 2027 outlook, raising topics from how orders turn into sales to how fast LEAP and CFM56 shop visits will grow.

How Big Is GE Aerospace’s Commercial Engine Business?

Commercial Engines & Services, the business that services both engine fleets, brought in $33.3 billion in fiscal 2025. That figure represented 72.7% of GE Aerospace’s revenue that year. The segment’s revenue grew 23.9% from fiscal 2024, against 11.4% for Defense & Propulsion Technologies.

The profit outlook for the segment has also risen. Management raised its 2026 operating profit guide for Commercial Engines & Services to $10.6 billion at the midpoint, up from $10.3 billion in July. The whole company expects $10.9 billion to $11.0 billion of operating profit.

What Has GE Aerospace Said About 2027 Services Growth?

Management has said it expects low double-digit commercial services growth in 2027, helped by a growing installed base, price, and a backlog of over $170 billion. GE entered the fourth quarter with about 95% of its revenue already in its backlog, management said, a level the company has held throughout the year.

When high oil prices came up on the call, management said engines coming off wing have been fairly steady and that it expects departures to grow in 2027. Management has not given a count of LEAP shop visits. But the CFO said their growth could ease from about 40% in the third quarter to about 25% to 26% in 2027. Full 2027 guidance comes in January.

So far, LEAP repair visits are climbing fast at about half the revenue each, and by management’s account, airline demand for engine work has held steady. GE Aerospace’s commercial services growth forecast for 2027, set beside the low double-digit outlook it gave in October, is the number to watch when the company gives its full 2027 guidance in January 2027.

Does This Mean You Should Act On GE?

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