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GE Aerospace
(NYSE:GE)
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Rating:74Outperform
Price Target:
$404.00
▲(32.84% Upside)
Action:Reiterated
Date:07/16/26
GE scores well primarily on strong profitability and a very constructive earnings-call outlook (raised 2026 guidance backed by a large backlog). The score is held back by weaker recent cash-flow momentum and a demanding valuation (high P/E and low yield), while technicals remain broadly supportive with some near-term consolidation.
Positive Factors
Large Backlog & Demand Visibility
A $170B commercial services backlog and >$210B total backlog provide multi-year revenue visibility for aftermarket services. This sustained demand underpins recurring service revenue, supports long-term cash flow predictability, and reduces near-term cyclicality for engine OEM economics.
Negative Factors
Moderate-to-Elevated Leverage
Debt slightly exceeding equity (debt-to-equity ~1.12) reduces financial flexibility and raises sensitivity to cash-flow volatility or macro shocks. Elevated leverage can constrain capital allocation choices, increase interest expense risk, and limit ability to accelerate investments if cash generation weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Large Backlog & Demand Visibility
A $170B commercial services backlog and >$210B total backlog provide multi-year revenue visibility for aftermarket services. This sustained demand underpins recurring service revenue, supports long-term cash flow predictability, and reduces near-term cyclicality for engine OEM economics.
Read all positive factors
GE Aerospace Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows the profitability of each business segment, highlighting which areas are driving earnings and which may need strategic adjustments.
Shows the profitability of each business segment, highlighting which areas are driving earnings and which may need strategic adjustments.
Data provided by:
The Fly
The FlyGE Aerospace (GE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$361.93B
Dividend Yield0.48%
Average Volume (3M)4.58M
Price to Earnings (P/E)40.9
Beta (1Y)1.38
Revenue Growth21.69%
EPS Growth18.42%
CountryUS
Employees57,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)8.52
Shares Outstanding1,037,562,500
10 Day Avg. Volume4,287,693
30 Day Avg. Volume4,582,379
Financial Highlights & Ratios
PEG Ratio1.08
Price to Book (P/B)17.60
Price to Sales (P/S)7.17
P/FCF Ratio45.25
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$403.73Price Target Upside32.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)7.75
Revenue Forecast (FY)$49.65B
GE Aerospace Business Overview & Revenue Model
Company Description
Based in Evendale, Ohio, GE Aerospace is a prominent American aviation enterprise with roots tracing back to its 1878 founding by Thomas Alva Edison. The company specializes in manufacturing and supplying jet and turboprop engines, along with inte...
How the Company Makes Money
GE Aerospace primarily makes money through (1) sales of aircraft engines and related equipment and (2) recurring aftermarket services over the multi-decade life of engines it has in service.
1) Engine and equipment sales (original equipment/OE):...
GE Aerospace Earnings Call Summary
Earnings Call Date:Jul 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and financial momentum: significant order, revenue, delivery and cash flow growth, plus an across-the-board guidance raise and multiple measurable operational improvements (FLIGHT DECK, AI, supplier collaboration). Offsetting this are near-term margin headwinds (installed-mix and GE9X investments), spare parts delinquencies and supply-side capacity constraints that the company is addressing. On balance, highlights materially outweigh the challenges and management presented a credible path to sustain growth while working through timing-related margin and fulfillment issues.Positive Updates
Strong Top-Line Growth
Q2 revenue increased 24% year-over-year; commercial engines & services (CES) revenue up 27% and Defense, Power & Technologies (DPT) revenue up 16%. First-half revenue was up 27% year-to-date.
Negative Updates
Margin Pressure
Total company margins decreased ~130 basis points to 21.7% in Q2. CES margins declined ~160 basis points to 27.3%, driven by installed engine growth, GE9X investments and inflationary pressures.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q2 revenue increased 24% year-over-year; commercial engines & services (CES) revenue up 27% and Defense, Power & Technologies (DPT) revenue up 16%. First-half revenue was up 27% year-to-date.
Read all positive updates
Company Guidance
GE Aerospace raised its full‑year 2026 guidance across the board: total revenue now expected to grow in the high‑teens (up from prior low double‑digits), CES growth around 20% (commercial services now seen up in the low‑20s and commercial equipment roughly 20% with LEAP deliveries up high‑teens), DPT growth in the low double‑digits, and consolidated operating profit projected at $10.55–$10.75 billion (CES operating profit $10.25–$10.35 billion; DPT $1.6–$1.7 billion) with corporate costs/eliminations of $1.2–$1.3 billion; EPS guidance is $7.65–$7.85 (up $0.35 at the midpoint) with an expected tax rate below 16.5% and free cash flow $8.9–$9.2 billion (up $650 million), while management highlighted a commercial services backlog of roughly $170 billion (total backlog >$210 billion), >95% of Q3 spare‑parts revenue already in backlog, and a Q3 pipeline of planned removals that exceeds the full‑year shop‑visit guide by over 40%.GE Aerospace Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.68B | 45.85B | 38.70B | 35.35B | 29.14B | 56.47B |
| Gross Profit | 17.96B | 16.89B | 14.39B | 12.41B | 10.15B | 13.09B |
| EBITDA | 11.56B | 12.06B | 9.79B | 12.65B | 4.04B | -1.54B |
| Net Income | 8.97B | 8.70B | 6.56B | 9.48B | 336.00M | -6.34B |
Balance Sheet | ||||||
| Total Assets | 127.67B | 130.17B | 125.76B | 176.11B | 188.85B | 198.87B |
| Cash, Cash Equivalents and Short-Term Investments | 9.35B | 12.39B | 14.60B | 20.91B | 23.42B | 28.07B |
| Total Debt | 19.16B | 20.49B | 20.38B | 21.76B | 26.15B | 38.03B |
| Total Liabilities | 109.81B | 111.27B | 106.20B | 147.50B | 153.94B | 157.11B |
| Stockholders Equity | 17.64B | 18.68B | 19.34B | 27.40B | 33.70B | 40.31B |
Cash Flow | ||||||
| Free Cash Flow | 3.59B | 7.26B | 3.68B | 3.58B | 4.74B | 2.37B |
| Operating Cash Flow | 5.00B | 8.54B | 4.71B | 5.18B | 5.92B | 3.48B |
| Investing Cash Flow | -2.16B | -1.15B | -1.67B | 3.98B | 2.27B | 21.38B |
| Financing Cash Flow | -11.71B | -8.68B | -6.73B | -8.61B | -5.58B | -45.40B |
GE Aerospace Technical Analysis
Neutral
304.13
Price Trends
333.36
Positive
318.17
Positive
311.73
Positive
Market Momentum
4.52
Positive
48.00
Neutral
25.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GE, the sentiment is Neutral. The current price of 304.13 is below the 20-day moving average (MA) of 362.64, below the 50-day MA of 333.36, and below the 200-day MA of 311.73, indicating a neutral trend. The MACD of 4.52 indicates Positive momentum. The RSI at 48.00 is Neutral, neither overbought nor oversold. The STOCH value of 25.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GE.
GE Aerospace Risk Analysis
GE Aerospace disclosed 18 risk factors in its most recent earnings report. GE Aerospace reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GE Aerospace Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $99.74B | 22.88 | 17.41% | 1.73% | 9.35% | 10.49% | |
74 Outperform | $361.93B | 40.94 | 46.39% | 0.48% | 21.69% | 18.42% | |
68 Neutral | $260.60B | 35.77 | 11.23% | 1.44% | 10.56% | 56.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $74.08B | 16.29 | 28.05% | 1.55% | 4.95% | 26.05% | |
59 Neutral | $118.40B | 24.54 | 74.53% | 2.77% | 4.59% | -10.76% | |
53 Neutral | $168.72B | 88.44 | -8723.08% | ― | 32.74% | ― |
* Industrials Sector Average
GE
GE Aerospace
348.83
87.30
33.38%
BA
Boeing
214.03
-15.29
-6.67%
GD
General Dynamics
368.58
76.68
26.27%
LMT
Lockheed Martin
508.77
60.33
13.45%
NOC
Northrop Grumman
521.57
14.24
2.81%
RTX
RTX
193.51
44.33
29.71%
GE Aerospace Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
GE Aerospace Tightens Bylaws and Shareholder Governance Rules
Neutral
Jun 25, 2026
On June 25, 2026, GE Aerospace’s board approved amendments to its by-laws to refine procedures for nominating directors and enhance disclosure obligations for shareholders. The changes require nomination information to be accurate as of the ...
Business Operations and StrategyExecutive/Board Changes
GE Aerospace adds Microsoft AI leader to board
Positive
Jun 11, 2026
On June 8, 2026, GE Aerospace’s board elected Judson Althoff, CEO of Microsoft’s Commercial Business, as an independent director, effective June 24, 2026. The board will expand in size to accommodate his appointment, and Althoff will r...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
GE Aerospace Shareholders Back Board, Pay and Incentive Plans
Positive
May 7, 2026
At its annual shareholders meeting held on May 5, 2026, GE Aerospace investors elected all director nominees, approved an advisory vote on executive compensation, endorsed an amended 2022 Long-Term Incentive Plan, backed a global employee stock pu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.