GE Aerospace (GE) Stock: Q425 Earnings Beat And Upbeat 2026 Outlook

TLDR

• GE Aerospace stock closed at $318.50 after a strong Q4 print.
• Non-GAAP EPS beat estimates as revenue surged over 20% year over year.
• Orders jumped 74% to $27 billion, signaling robust demand.
• GE guided for low double-digit revenue growth through fiscal 2026.
• Valuation sits near historical highs despite bullish analyst sentiment.

GE Aerospace (NYSE: GE) stock closed at $318.50, up 1.97%, at close on Jan 21st. The company delivered a better-than-expected fourth-quarter performance and reaffirmed confidence in continued growth through 2026.

GE Aerospace, GE

The aerospace engine maker posted strong earnings, accelerating revenue, and a major spike in order intake, reinforcing its position as a key beneficiary of the global commercial aviation recovery.

GE Aerospace reported Non-GAAP earnings per share of $1.57, beating estimates by $0.14. Revenue came in at $11.9 billion, up 20.4% year over year, and exceeded expectations by about $700 million. Total orders surged 74% to $27.0 billion, highlighting strong demand for engines and long-duration services.

Q4 Results Show Strong Revenue And EPS Momentum

GE Aerospace’s latest quarter underscored the power of its service-led business model. With an installed base of nearly 70,000 commercial and military engines worldwide, the company earns much of its profit from recurring service revenue tied to maintenance, repairs, and parts replacement.

That steady, high-margin revenue stream helped drive profitability higher. The operating margin stood at 20.52%, while net margin reached 18.34%, reflecting solid operational efficiency as volumes rise across global aviation markets.

GE Aerospace also emphasized that its long-term outlook remains supported by its CFM joint venture with Safran, a cornerstone relationship that strengthens its competitive footprint in narrowbody aircraft engines.

2026 Guidance Points To Continued Expansion

Looking ahead, GE Aerospace projected revenue growth in the low double digits through fiscal year 2026, signaling confidence in sustained demand. The company guided for adjusted EPS between $7.10 and $7.40, compared with the $7.12 consensus estimate.

This guidance suggests GE expects both top-line expansion and margin strength to continue into the next cycle, supported by commercial flight activity and aftermarket servicing. Shares gained in pre-market trading following the release as investors responded to the combination of current execution and forward visibility.

Financial Profile Remains Strong Despite A Few Flags

GE Aerospace’s balance sheet reflects stable positioning. The company reported a current ratio of 1.08 and a debt-to-equity ratio of 1.11, indicating a measured approach to leverage. Its Altman Z-Score of 3.41 also suggests financial strength.

There are still a few cautionary signals. Insider activity has leaned toward selling, with about 8,000 shares sold over the last three months. GE also reported a three-year revenue growth rate of -11.7%, reflecting that the company is still climbing out of prior period declines even as the current growth trajectory improves.

Another point investors may track is capital efficiency. GE Aerospace’s ROIC of 6.73% sits below its weighted average cost of capital, pointing to potential inefficiencies in capital allocation despite strong operational performance.

Valuation And Market Sentiment Stay Elevated

GE Aerospace stock is trading near historical highs based on common valuation measures. The company’s price-to-earnings ratio is 42.52, close to its one-year high of 43.41. The price-to-sales ratio of 7.78 is near a 10-year high, while price-to-book of 17.86 is also close to decade highs.

Analyst sentiment remains positive, with a target price of $352.43 and a recommendation score of 2, reflecting a Buy consensus. Technical indicators show a neutral setup, with an RSI of 53.27 suggesting the stock is neither overheated nor oversold.

GE Stock Performance Strongly Outpaces The Market

GE Aerospace has delivered standout returns relative to the broader market. Year to date, the stock is up 3.40%, beating the S&P 500’s 0.44% gain. Over one year, GE has returned 70.83%, far above the index’s 13.66% increase.

Over three years, GE has surged 421.66%, and five-year returns stand at 490.53%, dramatically outpacing the S&P 500 in both timeframes. For investors, the challenge now is balancing strong fundamentals and demand tailwinds against an elevated valuation level and sector risks like geopolitical uncertainty and defense spending fluctuations.

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