GE down 3.7% on engine margin plateau despite record Q3 earnings

The 10-year Treasury closed at 5.15% on Tuesday, the highest print in 2026. The VIX settled at 18.4. Against that backdrop, two defense and aerospace giants reported Q3 results in the same session and moved in opposite directions.

$GE down 3.7% on engine program margin plateau through 2027

GE Aerospace posted record Q3 results and raised its full-year 2026 guidance. The stock fell 3.7% regardless. Investors absorbed the beat and priced in what management indicated on the call: new engine development programs are expected to hold margins roughly flat through 2027 and into 2028. A record quarter could not offset two years of anticipated margin stagnation at the current valuation.

$RTX raises 2026 guidance on Q3 revenue of $25B, EPS +33%

RTX had the cleaner session. Adjusted Q3 revenue reached $25 billion, up 11% year-over-year and 12% organically. Earnings per share rose 33%. Management raised both the full-year profit forecast and cash generation targets, crediting sustained demand for Patriot and Tomahawk systems and a strengthening commercial aviation aftermarket. Supply-chain improvements flagged in prior quarters are now visible in the margin line.

Healthcare: $LLY +3.5%, $MRK +3.3%, $UNH +3.0%

$LLY rose 3.5% after Goldman Sachs raised its price target to $1,413 and Bank of America issued a comparable upgrade, both citing stronger-than-expected Mounjaro growth outside the U.S. The real data test comes October 29, when Lilly reports Q3. $MRK gained 3.3% after agreeing to acquire Silence Therapeutics for $20 per share — a 130% premium — a direct hedge against the Keytruda patent expiration expected in 2028. $UNH added 3.0% on Optum segment recovery; no new filing drove the move today.

$CRM down 2% on $5.66B Braze acquisition; $ADBE +3.9%; $NFLX and $SPCX earnings

$CRM confirmed a $5.66 billion all-cash acquisition of Braze and fell 2% on capital-allocation concerns. $ADBE gained 3.9%, the clearest sector beneficiary as the Braze deal repriced competitive exposure in marketing software. On the earnings front: $NFLX beat Q3 profit targets and reaffirmed its $51.1 billion full-year revenue outlook. $SPCX reported a record $14.6 billion in quarterly revenue, driven by AI infrastructure demand and Starlink subscriber growth.

Update: $PLTR insider selling

Since this desk's October 14 report on a Palantir director's approximately $1 million share sale, the same director has now disclosed a cumulative total of $3.2 million in sales. The selling continues at a larger scale.

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What we set aside

The desk examined 60 tickers. Proxy and governance filings (four), annual-meeting and equity-plan paperwork (one), and nine filings with underlying events older than 36 hours were excluded. PSX was examined; nothing substantive cleared the gate.

Filings desk

Salesforce and Braze filed a joint Form 8-K on October 20 disclosing the combination and an investor webinar. RTX filed a Form 8-K the same date confirming Q3 results and the raised full-year guidance.

The desk is watching Eli Lilly's October 29 earnings call, which will confirm or reset the analyst upgrades that moved the stock today.