(Alliance News) - General Electric Co on Tuesday reported a drop in first quarter profit, despite sales rising by a quarter, as margins took a hit.

The Cincinnati, Ohio-based aircraft engine supplier doing business as GE Aerospace said profit fell 2.2% to USD2.20 billion in the three months to March from USD2.25 billion the year prior.

Revenue rose 25% to USD12.39 billion from USD9.94 billion on-year but profit margins were squeezed to 17.7% from 22.6%.

Adjusted revenue grew 29% to USD11.61 billion from USD9.00 billion.

Earnings per share from continuing operations were flat at USD1.83. On an adjusted basis, EPS increased 25% to USD1.86 from USD1.49.

Chair & Chief Executive Larry Culp said: "GE Aerospace had a strong first quarter with orders growing 87%... supporting double-digit growth in earnings and free cash flow."

For 2026, GE maintained guidance for low double digit adjusted revenue growth from USD42.3 billion in 2025, operating profit of USD9.85 billion to USD10.25 billion and adjusted EPS of USD7.10 to USD7.40.

This assumes the price of Brent crude remaining elevated through the third quarter and decreasing by year-end, and a reduction n global GDP estimates.

In 2025, GE Aerospace reported operating profit of USD9.06 billion and adjusted EPS of USD6.37.

Shares in GE were up 0.8% at USD306.00 in premarket trading in New York on Tuesday.

By Jeremy Cutler, Alliance News reporter

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