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GE Aerospace
(NYSE:GE)
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Rating:72Outperform
Price Target:
$346.00
▼(-1.01% Downside)
Action:Reiterated
Date:10/20/26
The score is driven primarily by strong underlying financial performance and a very constructive earnings outlook (raised 2026 guidance, strong backlog and services momentum). These positives are tempered by weak current technicals (price below key moving averages and negative MACD) and a rich valuation (high P/E with a low dividend yield).
Positive Factors
Recurring aftermarket services
The large installed base creates a durable aftermarket opportunity because engines require maintenance, parts and overhaul work throughout long operating lives. This recurring demand, reinforced by field experience and a growing services network, supports revenue visibility beyond new-engine delivery cycles.
Negative Factors
Elevated leverage and reduced equity
Debt slightly above equity limits balance-sheet flexibility compared with lower-leverage peers and leaves less room to absorb an earnings slowdown. The decline in equity also makes the capital structure more sensitive to weaker profitability, higher funding needs or unexpected program costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket services
The large installed base creates a durable aftermarket opportunity because engines require maintenance, parts and overhaul work throughout long operating lives. This recurring demand, reinforced by field experience and a growing services network, supports revenue visibility beyond new-engine delivery cycles.
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
$311.13B
Dividend Yield0.6%
Average Volume (3M)4.59M
Price to Earnings (P/E)34.0
Beta (1Y)1.36
Revenue Growth21.69%
EPS Growth18.42%
CountryUS
Employees57,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)8.69
Shares Outstanding1,037,562,500
10 Day Avg. Volume4,580,850
30 Day Avg. Volume4,591,954
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 Cap1.29
Enterprise Value/Revenue7.65
Enterprise Value/Gross Profit21.73
Enterprise Value/Ebitda31.32
Forecast
1Y Price Target
$387.69Price Target Upside10.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)8.11
Revenue Forecast (FY)$50.61B
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 earns revenue from two broad sources: (1) selling propulsion products and related equipment, and (2) higher-margin aftermarket services tied to the long life cycle of aircraft engines.
1) Commercial and defense engine/equip...
GE Aerospace Earnings Call Summary
Earnings Call Date:Oct 20, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 21, 2027
Earnings Call Sentiment Positive
The call was strongly optimistic, with significant growth in orders, revenue, profit, EPS, free cash flow, services demand, engine deliveries, backlog, and defense activity. Management raised 2026 guidance and provided a low double-digit commercial services growth outlook for 2027. The main challenges discussed were inflation, working capital use, increased spare-parts delinquency, supply-chain constraints, airline fuel pressures, and the pending GE9X certification and related 2027 profit headwind. Overall, the positive operating and financial trends significantly outweighed the identified challenges.Positive Updates
Strong Third-Quarter Financial Performance
Total company revenue increased 18%, operating profit grew 30% to $3 billion, operating margins expanded 220 basis points to 22.5%, EPS increased 36% to $2.25, and free cash flow was $2 billion.
Negative Updates
Dynamic Operating Environment and Fuel Pressures
Management described the operating environment as dynamic, with airlines navigating fuel pressures. Schedules may be trimmed, although third-quarter departures were up 1% and the company anticipates departures growth in 2027.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Financial Performance
Total company revenue increased 18%, operating profit grew 30% to $3 billion, operating margins expanded 220 basis points to 22.5%, EPS increased 36% to $2.25, and free cash flow was $2 billion.
Read all positive updates
Company Guidance
For 2026, GE Aerospace raised guidance to revenue growth of 19%-20%, CES growth of low 20s, commercial equipment growth of low 20s, and DPT growth of low double digits; commercial services is expected to deliver approximately $5.5 billion of year-over-year revenue growth, up approximately $400 million at the midpoint from the prior expectation. Operating profit is expected to be $10.9 billion-$11 billion, CES operating profit $10.5 billion-$10.6 billion, DPT profit $1.6 billion-$1.7 billion, corporate costs and eliminations toward the lower end of the $1.2 billion-$1.3 billion range, EPS $8-$8.10, with a tax rate of around 16%, and free cash flow $9.1 billion-$9.4 billion with above 100% conversion; GE expects around $1.9 billion of profit growth and $1.6 billion of free cash flow growth. For 2027, GE expects low double-digit commercial services growth, with the commercial install base growing low to mid-single digits annually, DPT revenue growth of high single digits, services revenue growth of about $3.5 billion-$4 billion, services margins flat, and a 9X headwind of about another $300 million year-over-year, while 2027 margins should stay in line with 2026.GE Aerospace Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 52.58B | 45.85B | 38.70B | 35.35B | 29.14B | 56.47B |
| Gross Profit | 18.52B | 16.89B | 14.39B | 12.41B | 10.15B | 13.09B |
| EBITDA | 12.85B | 12.06B | 9.79B | 12.65B | 4.04B | -1.54B |
| Net Income | 9.10B | 8.70B | 6.56B | 9.48B | 336.00M | -6.34B |
Balance Sheet | ||||||
| Total Assets | 127.19B | 130.17B | 125.76B | 176.11B | 188.85B | 198.87B |
| Cash, Cash Equivalents and Short-Term Investments | 8.76B | 12.39B | 14.60B | 20.91B | 23.42B | 28.07B |
| Total Debt | 19.33B | 20.49B | 20.38B | 21.76B | 26.15B | 38.03B |
| Total Liabilities | 109.44B | 111.27B | 106.20B | 147.50B | 153.94B | 157.11B |
| Stockholders Equity | 17.52B | 18.68B | 19.34B | 27.40B | 33.70B | 40.31B |
Cash Flow | ||||||
| Free Cash Flow | 8.02B | 7.26B | 3.68B | 3.58B | 4.74B | 2.37B |
| Operating Cash Flow | 9.45B | 8.54B | 4.71B | 5.18B | 5.92B | 3.48B |
| Investing Cash Flow | -2.79B | -1.15B | -1.67B | 3.98B | 2.27B | 21.38B |
| Financing Cash Flow | -11.32B | -8.68B | -6.73B | -8.61B | -5.58B | -45.40B |
GE Aerospace Technical Analysis
Negative
349.54
Price Trends
324.68
Negative
339.22
Negative
322.64
Negative
Market Momentum
-6.53
Positive
30.33
Neutral
17.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GE, the sentiment is Negative. The current price of 349.54 is above the 20-day moving average (MA) of 308.87, above the 50-day MA of 324.68, and above the 200-day MA of 322.64, indicating a bearish trend. The MACD of -6.53 indicates Positive momentum. The RSI at 30.33 is Neutral, neither overbought nor oversold. The STOCH value of 17.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $311.13B | 34.05 | 50.64% | 0.60% | 21.69% | 18.42% | |
71 Outperform | $46.32B | 24.85 | 9.41% | 2.00% | 7.29% | 10.75% | |
70 Outperform | $260.58B | 30.75 | 12.77% | 1.47% | 11.63% | 26.50% | |
67 Neutral | $84.40B | 44.56 | 34.41% | 0.24% | 18.08% | 35.49% | |
64 Neutral | $50.68B | 68.55 | -16.21% | ― | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
49 Neutral | $151.97B | 72.01 | 104.83% | 2.40% | 24.78% | ― |
* Industrials Sector Average
GE
GE Aerospace
293.54
-11.21
-3.68%
BA
Boeing
187.55
-30.22
-13.88%
LHX
L3Harris Technologies
254.23
-34.26
-11.88%
RTX
RTX
194.71
17.90
10.12%
HWM
Howmet Aerospace
193.29
-6.39
-3.20%
HONA
Honeywell Aerospace
163.02
-36.98
-18.49%
GE Aerospace Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
GE Aerospace strengthens board leadership and governance oversight
Positive
Sep 22, 2026
On September 21, 2026, GE Aerospace’s Board appointed Wes Bush as independent Lead Director, replacing Tom Horton in that role while retaining him as a director, reinforcing continuity and oversight on the board. Bush, an independent directo...
Business Operations and StrategyM&A Transactions
GE Aerospace to Acquire Castings Specialist CPP
Positive
Sep 8, 2026
On September 8, 2026, GE Aerospace announced an agreement to acquire Consolidated Precision Products, a leading producer of highly engineered airfoils and structural castings for commercial, defense and power applications, in an $11.75 billion cas...
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.