GE Aerospace stock dropped 3.8% in morning trading Tuesday after the company reported third-quarter 2026 earnings that exceeded analyst expectations. The decline followed a premarket drop of more than 4%, with shares testing the $300 level.

The company posted adjusted earnings per share of $2.25, surpassing the analyst consensus of $2.00. Adjusted revenue reached $13.29 billion, above the $12.85 billion estimate.

Free cash flow fell 14% year-over-year to $2.0 billion due to working capital timing. Management indicated that GE9X program losses are expected to create a roughly $300 million headwind as the engine ramps into 2027.

Insider selling totaled $21.3 million over the past year, with no insider purchases recorded during the period. The stock trades at a forward price-to-earnings multiple of approximately 38 to 40 times.

Jefferies maintained its Buy rating with a $435 price target, while Vertical Research Partners kept its Buy rating at $400. Both firms cited the strength of the operating results and raised full-year guidance.