GE · Earnings call · 2026Q3T · Full report

Inflationary Cost Pressures

GENERAL ELECTRIC CO · 2026-10-20 · Importance 32 · Surprise 24

Inflation partially offset the benefits of higher volume, productivity, and pricing in third-quarter operating margins. Management said inflation was a partial offset to both Commercial Engines and Services and Defense and Propulsion Technologies margin improvement. For 2027, management expects services margins to remain flat despite LEAP growth, while GE9X losses are expected to create an additional approximately $300 million year-over-year headwind. The company expects volume, services contribution, and DPT contribution to offset the GE9X pressure sufficiently to hold overall 2027 margins in line with 2026.