GE Aerospace (GE)
Market Price (10/28/2026): $298.24 | Market Cap: $309.4 BilInvestor Relations Sector: Industrials | Industry: Aerospace & Defense
GE Aerospace (GE)
Market Price (10/28/2026): $298.24Market Cap: $309.4 BilSector: IndustrialsIndustry: Aerospace & Defense
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 20% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 18%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 15%, CFO LTM is 9.5 Bil, FCF LTM is 8.0 Bil Stock buyback supportStock Buyback 3Y Total is 20 Bil Low stock price volatilityVol 12M is 33% Megatrend and thematic driversMegatrends include Advanced Aviation & Space, Advanced Materials, Electrification of Everything, and Hydrogen Economy. Show more. | Key risksGE key risks include [1] consistent operational challenges from global supply chain disruptions that have previously impacted its production and revenue forecasts. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 20% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 18%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 15%, CFO LTM is 9.5 Bil, FCF LTM is 8.0 Bil |
| Stock buyback supportStock Buyback 3Y Total is 20 Bil |
| Low stock price volatilityVol 12M is 33% |
| Megatrend and thematic driversMegatrends include Advanced Aviation & Space, Advanced Materials, Electrification of Everything, and Hydrogen Economy. Show more. |
| Key risksGE key risks include [1] consistent operational challenges from global supply chain disruptions that have previously impacted its production and revenue forecasts. |
Qualitative Assessment
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Updated on 10/23/2026
GE Aerospace (GE) stock has lost about 20% since 6/30/2026 because of the following key factors:
1. Investor concerns over valuation and future growth prospects despite strong fiscal Q3 2026 performance.
Despite GE Aerospace reporting robust fiscal Q3 2026 results on October 20, 2026, with adjusted earnings per share (EPS) of $2.25 on revenue of $13.3 billion (beating analyst estimates of $2.00 EPS and $12.85 billion in sales, respectively) and raising its full-year 2026 guidance, the stock declined. Investors reportedly looked beyond the earnings beat, focusing instead on the stock's high valuation and the anticipated pace of future growth and program milestones, leading to a notable sell-off. The stock had already fallen approximately 20% from its intraday record high of $389 set on August 6, 2026, to its closing price on October 16, 2026, indicating a re-evaluation of growth expectations.
2. Projected 2027 profit drag from the GE9X engine transition and associated execution risks.
A significant company-specific concern weighing on the stock is the projected $300 million profit drag in fiscal year 2027 related to the GE9X engine program. Investors are factoring in future execution risks and transition costs associated with ramping up the production of the GE9X engine, creating uncertainty about its impact on profitability beyond the current fiscal year.
Show more
GE Aerospace (GE) stock has lost about 20% since 6/30/2026 because of the following key factors:
1. Investor concerns over valuation and future growth prospects despite strong fiscal Q3 2026 performance.
Despite GE Aerospace reporting robust fiscal Q3 2026 results on October 20, 2026, with adjusted earnings per share (EPS) of $2.25 on revenue of $13.3 billion (beating analyst estimates of $2.00 EPS and $12.85 billion in sales, respectively) and raising its full-year 2026 guidance, the stock declined. Investors reportedly looked beyond the earnings beat, focusing instead on the stock's high valuation and the anticipated pace of future growth and program milestones, leading to a notable sell-off. The stock had already fallen approximately 20% from its intraday record high of $389 set on August 6, 2026, to its closing price on October 16, 2026, indicating a re-evaluation of growth expectations.
2. Projected 2027 profit drag from the GE9X engine transition and associated execution risks.
A significant company-specific concern weighing on the stock is the projected $300 million profit drag in fiscal year 2027 related to the GE9X engine program. Investors are factoring in future execution risks and transition costs associated with ramping up the production of the GE9X engine, creating uncertainty about its impact on profitability beyond the current fiscal year.
Show more
Updated on 10/23/2026
GE Aerospace (GE) stock has lost about 20% since 6/30/2026 because of the following key factors:
1. Investor concerns over valuation and future growth prospects despite strong fiscal Q3 2026 performance.
Despite GE Aerospace reporting robust fiscal Q3 2026 results on October 20, 2026, with adjusted earnings per share (EPS) of $2.25 on revenue of $13.3 billion (beating analyst estimates of $2.00 EPS and $12.85 billion in sales, respectively) and raising its full-year 2026 guidance, the stock declined. Investors reportedly looked beyond the earnings beat, focusing instead on the stock's high valuation and the anticipated pace of future growth and program milestones, leading to a notable sell-off. The stock had already fallen approximately 20% from its intraday record high of $389 set on August 6, 2026, to its closing price on October 16, 2026, indicating a re-evaluation of growth expectations.
2. Projected 2027 profit drag from the GE9X engine transition and associated execution risks.
A significant company-specific concern weighing on the stock is the projected $300 million profit drag in fiscal year 2027 related to the GE9X engine program. Investors are factoring in future execution risks and transition costs associated with ramping up the production of the GE9X engine, creating uncertainty about its impact on profitability beyond the current fiscal year.
3. Macroeconomic headwinds from high jet fuel prices impacting airline profitability and future demand.
Elevated jet fuel costs, partly attributed to the war with Iran, have put pressure on airlines, leading them to cut costs and capacity. Although GE Aerospace anticipated a modest impact on its fiscal 2026 services sales and earnings, the broader market concern is that sustained high fuel prices could negatively affect airline profitability, potentially slowing future engine demand and delaying aircraft and engine purchases.
4. Widespread analyst price target reductions following the fiscal Q3 2026 earnings report.
Despite GE Aerospace's strong fiscal Q3 2026 performance and raised full-year guidance, several prominent investment analysts reduced their price targets for the stock. For instance, BNP Paribas Exane lowered its price target from $305 to $280, JPMorgan Chase & Co. decreased its target from $400 to $375, RBC Capital and Morgan Stanley both cut their targets from $400 to $375, Susquehanna reduced its target from $430 to $400, and Bernstein lowered its target from $421 to $376. These collective adjustments by analysts, even in the face of positive earnings, reflect a more cautious outlook on the stock's near-term growth potential and contribute to negative market sentiment.
Show less
GE Aerospace (GE) stock has lost about 20% since 6/30/2026 because of the following key factors:
1. Investor concerns over valuation and future growth prospects despite strong fiscal Q3 2026 performance.
Despite GE Aerospace reporting robust fiscal Q3 2026 results on October 20, 2026, with adjusted earnings per share (EPS) of $2.25 on revenue of $13.3 billion (beating analyst estimates of $2.00 EPS and $12.85 billion in sales, respectively) and raising its full-year 2026 guidance, the stock declined. Investors reportedly looked beyond the earnings beat, focusing instead on the stock's high valuation and the anticipated pace of future growth and program milestones, leading to a notable sell-off. The stock had already fallen approximately 20% from its intraday record high of $389 set on August 6, 2026, to its closing price on October 16, 2026, indicating a re-evaluation of growth expectations.
2. Projected 2027 profit drag from the GE9X engine transition and associated execution risks.
A significant company-specific concern weighing on the stock is the projected $300 million profit drag in fiscal year 2027 related to the GE9X engine program. Investors are factoring in future execution risks and transition costs associated with ramping up the production of the GE9X engine, creating uncertainty about its impact on profitability beyond the current fiscal year.
3. Macroeconomic headwinds from high jet fuel prices impacting airline profitability and future demand.
Elevated jet fuel costs, partly attributed to the war with Iran, have put pressure on airlines, leading them to cut costs and capacity. Although GE Aerospace anticipated a modest impact on its fiscal 2026 services sales and earnings, the broader market concern is that sustained high fuel prices could negatively affect airline profitability, potentially slowing future engine demand and delaying aircraft and engine purchases.
4. Widespread analyst price target reductions following the fiscal Q3 2026 earnings report.
Despite GE Aerospace's strong fiscal Q3 2026 performance and raised full-year guidance, several prominent investment analysts reduced their price targets for the stock. For instance, BNP Paribas Exane lowered its price target from $305 to $280, JPMorgan Chase & Co. decreased its target from $400 to $375, RBC Capital and Morgan Stanley both cut their targets from $400 to $375, Susquehanna reduced its target from $430 to $400, and Bernstein lowered its target from $421 to $376. These collective adjustments by analysts, even in the face of positive earnings, reflect a more cautious outlook on the stock's near-term growth potential and contribute to negative market sentiment.
Show less
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Stock Movement Drivers
Fundamental Drivers
The -20.1% change in GE stock from 6/30/2026 to 10/27/2026 was primarily driven by a -25.1% change in the company's P/E Multiple.| (LTM values as of) | 6302026 | 10272026 | Change |
|---|---|---|---|
| Stock Price ($) | 372.70 | 297.66 | -20.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 48,312 | 52,575 | 8.8% |
| Net Income Margin (%) | 17.9% | 17.3% | -3.1% |
| P/E Multiple | 45.2 | 33.8 | -25.1% |
| Shares Outstanding (Mil) | 1,046 | 1,035 | 1.1% |
| Cumulative Contribution | -20.1% |
Market Drivers
6/30/2026 to 10/27/2026| Return | Correlation | |
|---|---|---|
| GE | -20.1% | |
| Market (SPY) | 3.1% | 34.0% |
| Sector (XLI) | -9.3% | 64.1% |
Fundamental Drivers
The 5.2% change in GE stock from 3/31/2026 to 10/27/2026 was primarily driven by a 14.7% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 3312026 | 10272026 | Change |
|---|---|---|---|
| Stock Price ($) | 282.99 | 297.66 | 5.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 45,854 | 52,575 | 14.7% |
| Net Income Margin (%) | 19.0% | 17.3% | -8.8% |
| P/E Multiple | 34.2 | 33.8 | -1.1% |
| Shares Outstanding (Mil) | 1,052 | 1,035 | 1.6% |
| Cumulative Contribution | 5.2% |
Market Drivers
3/31/2026 to 10/27/2026| Return | Correlation | |
|---|---|---|
| GE | 5.2% | |
| Market (SPY) | 18.7% | 41.1% |
| Sector (XLI) | 4.1% | 69.7% |
Fundamental Drivers
The -0.5% change in GE stock from 9/30/2025 to 10/27/2026 was primarily driven by a -17.5% change in the company's P/E Multiple.| (LTM values as of) | 9302025 | 10272026 | Change |
|---|---|---|---|
| Stock Price ($) | 299.21 | 297.66 | -0.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 41,609 | 52,575 | 26.4% |
| Net Income Margin (%) | 18.6% | 17.3% | -7.1% |
| P/E Multiple | 41.0 | 33.8 | -17.5% |
| Shares Outstanding (Mil) | 1,063 | 1,035 | 2.7% |
| Cumulative Contribution | -0.5% |
Market Drivers
9/30/2025 to 10/27/2026| Return | Correlation | |
|---|---|---|
| GE | -0.5% | |
| Market (SPY) | 16.5% | 47.6% |
| Sector (XLI) | 9.8% | 70.2% |
Fundamental Drivers
The 243.2% change in GE stock from 9/30/2023 to 10/27/2026 was primarily driven by a 254.5% change in the company's P/E Multiple.| (LTM values as of) | 9302023 | 10272026 | Change |
|---|---|---|---|
| Stock Price ($) | 86.73 | 297.66 | 243.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 25,576 | 52,575 | 105.6% |
| Net Income Margin (%) | 38.7% | 17.3% | -55.2% |
| P/E Multiple | 9.5 | 33.8 | 254.5% |
| Shares Outstanding (Mil) | 1,089 | 1,035 | 5.2% |
| Cumulative Contribution | 243.2% |
Market Drivers
9/30/2023 to 10/27/2026| Return | Correlation | |
|---|---|---|
| GE | 243.2% | |
| Market (SPY) | 86.2% | 56.0% |
| Sector (XLI) | 72.2% | 68.1% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| GE Return | 10% | -11% | 94% | 65% | 86% | -6% | 446% |
| Peers Return | 10% | 21% | 1% | 6% | 21% | 8% | 86% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 11% | 103% |
Monthly Win Rates [3] | |||||||
| GE Win Rate | 42% | 50% | 83% | 75% | 83% | 40% | |
| Peers Win Rate | 53% | 58% | 42% | 50% | 52% | 48% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 40% | |
Max Drawdowns [4] | |||||||
| GE Max Drawdown | -21% | -41% | -9% | -18% | -21% | -25% | |
| Peers Max Drawdown | -18% | -25% | -24% | -21% | -19% | -26% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: RTX, HON, BA, LMT, NOC. See GE Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 10/27/2026 (YTD)
How Low Can It Go
| Event | GE | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -20.6% | -18.8% |
| % Gain to Breakeven | 26.0% | 23.1% |
| Time to Breakeven | 34 days | 79 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -36.4% | -24.5% |
| % Gain to Breakeven | 57.2% | 32.4% |
| Time to Breakeven | 181 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -51.5% | -33.7% |
| % Gain to Breakeven | 106.2% | 50.9% |
| Time to Breakeven | 337 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -46.2% | -19.2% |
| % Gain to Breakeven | 86.0% | 23.8% |
| Time to Breakeven | 387 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -11.2% | -12.2% |
| % Gain to Breakeven | 12.6% | 13.9% |
| Time to Breakeven | 41 days | 62 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -22.1% | -17.9% |
| % Gain to Breakeven | 28.4% | 21.8% |
| Time to Breakeven | 98 days | 123 days |
In The Past
GE Aerospace's stock fell -20.6% during the 2025 US Tariff Shock. Such a loss loss requires a 26.0% gain to breakeven.
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| Event | GE | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -20.6% | -18.8% |
| % Gain to Breakeven | 26.0% | 23.1% |
| Time to Breakeven | 34 days | 79 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -36.4% | -24.5% |
| % Gain to Breakeven | 57.2% | 32.4% |
| Time to Breakeven | 181 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -51.5% | -33.7% |
| % Gain to Breakeven | 106.2% | 50.9% |
| Time to Breakeven | 337 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -46.2% | -19.2% |
| % Gain to Breakeven | 86.0% | 23.8% |
| Time to Breakeven | 387 days | 105 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -22.1% | -17.9% |
| % Gain to Breakeven | 28.4% | 21.8% |
| Time to Breakeven | 98 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -27.6% | -15.4% |
| % Gain to Breakeven | 38.2% | 18.2% |
| Time to Breakeven | 203 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -80.8% | -53.4% |
| % Gain to Breakeven | 419.7% | 114.4% |
| Time to Breakeven | 2409 days | 1085 days |
In The Past
GE Aerospace's stock fell -20.6% during the 2025 US Tariff Shock. Such a loss loss requires a 26.0% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About GE Aerospace (GE)
GE Aerospace, trading under the symbol GE, is now an independent, pure-play aviation company that serves as the legal successor to the original General Electric conglomerate. Following a multi-year restructuring that spun off its healthcare and energy businesses, GE Aerospace is entirely focused on designing, manufacturing, and servicing jet engines, advanced components, and integrated systems for a global customer base.
The company's core business encompasses a wide portfolio of gas turbine engines, electric power systems, and mechanical aircraft systems. A significant revenue driver is its comprehensive aftermarket services, including maintenance, repair, and overhaul (MRO) to optimize engine lifecycle performance. Furthermore, GE Aerospace operates CFM International, a highly successful joint venture with Safran Aircraft Engines, which is a major supplier of commercial aircraft engines worldwide. Its primary customers span commercial airlines, military forces, business jet operators, and the general aviation sector, with a strong emphasis on developing next-generation propulsion and sustainable aviation technologies.
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- The Intel for airplanes.
- Boeing for jet engines.
- The Rolls-Royce of jet engines.
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- Jet Engines (Commercial & Military): Designs, manufactures, and services a wide portfolio of gas turbine jet engines for commercial, military, business, and general aviation aircraft.
- Engine Components & Integrated Systems: Produces advanced engine components and integrated systems that enhance propulsion, power, and functionality for various aircraft platforms.
- Aircraft Electric Power & Mechanical Systems: Develops and supplies electric power systems and mechanical aircraft systems for aircraft.
- Aftermarket Services: Provides comprehensive maintenance, repair, and overhaul (MRO) services to optimize engine performance, reliability, and lifecycle across the aviation sector.
- CFM International Commercial Engines: Through its highly successful joint venture with Safran Aircraft Engines, supplies a major share of the world's commercial aircraft engines.
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GE Aerospace primarily sells its products and services to other companies within the aviation and defense sectors. Its major customers include:
-
Aircraft Manufacturers:
- Boeing (symbol: BA): A leading global aerospace company, a major customer for GE Aerospace's commercial and military aircraft engines.
- Airbus: The other dominant commercial aircraft manufacturer globally, a significant customer for engines, particularly through the CFM International joint venture.
- Lockheed Martin (symbol: LMT): A premier global security and aerospace company, purchasing GE Aerospace engines for various military aircraft programs.
- Northrop Grumman (symbol: NOC): Another major American aerospace and defense technology company, a customer for advanced military jet engines.
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Commercial Airlines and Cargo Operators: These companies are major purchasers of new engines for their fleets and significant consumers of GE Aerospace's comprehensive aftermarket services (maintenance, repair, and overhaul).
- Delta Air Lines (symbol: DAL)
- United Airlines (symbol: UAL)
- American Airlines (symbol: AAL)
- FedEx (symbol: FDX)
- Government and Military Entities: Various governments and their respective military forces are direct or indirect customers for military aircraft engines and associated services.
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- Safran S.A. (SAF.PA)
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Here is the management team for GE Aerospace:
H. Lawrence Culp, Jr. Chairman and CEO
Mr. Culp joined the GE Board of Directors in April 2018, was appointed CEO of GE in October 2018, and assumed additional duties as CEO of GE Aerospace in June 2022, becoming Chairman & CEO of GE Aerospace upon its launch as a public company in April 2024. He spearheaded GE's multi-year financial and operational transformation, resulting in over $100 billion in debt reduction. Prior to GE, Mr. Culp spent 25 years at Danaher Corporation, serving as President and CEO from 2001 to 2014, during which the company's revenues and market capitalization increased fivefold. He was also a Senior Lecturer at Harvard Business School and has served as a senior advisor at Bain Capital Private Equity. He is recognized as the first outsider to lead GE in its 126-year history. Rahul Ghai Senior Vice President and Chief Financial Officer
Mr. Ghai joined GE Aerospace in August 2022 and held the role of CFO for GE from September 2023 through the spin-off of GE Vernova in April 2024. Before joining GE Aerospace, he served as CFO of Otis Elevators starting July 2019, where he was instrumental in its spin from United Technologies Corporation. Previously, Mr. Ghai was CFO of Harris Corporation for four years, where he contributed to tripling the company's stock price by focusing on divesting non-strategic assets and investing in technology. His career includes executive-level finance roles at Aetna Insurance, Carrier Corporation, and UTC Fire and Security, where he demonstrated a strong track record of driving transformation and was involved in multiple M&A transactions. He began his career in the financial services industry in India. Mohamed Ali President and CEO, Commercial Engines & Services
Mr. Ali leads GE Aerospace's approximately $33 billion Commercial Engines & Services business, overseeing the entire lifecycle of its commercial engine operations, from engineering and supply chain to manufacturing and aftermarket services. He began his career with GE in 1997 as a research scientist. Amy Gowder President and CEO, Defense and Systems
Ms. Gowder leads the operations responsible for developing and manufacturing engines and systems for various military applications, including air combat, trainer, tanker, helicopter, and marine. She brings over 20 years of leadership experience within the aerospace and technology industry. Riccardo Procacci President and CEO, Propulsion and Additive Technologies
A 30-year veteran of General Electric, Mr. Procacci is responsible for four independent companies: Avio Aero, Unison, Dowty, and Colibrium Additive, which support both GE Aerospace and external customers globally. He was appointed CEO of Avio Aero in 2013 and later expanded his leadership to include GE Additive, Dowty Propellers, and Unison Industries.
Mr. Culp joined the GE Board of Directors in April 2018, was appointed CEO of GE in October 2018, and assumed additional duties as CEO of GE Aerospace in June 2022, becoming Chairman & CEO of GE Aerospace upon its launch as a public company in April 2024. He spearheaded GE's multi-year financial and operational transformation, resulting in over $100 billion in debt reduction. Prior to GE, Mr. Culp spent 25 years at Danaher Corporation, serving as President and CEO from 2001 to 2014, during which the company's revenues and market capitalization increased fivefold. He was also a Senior Lecturer at Harvard Business School and has served as a senior advisor at Bain Capital Private Equity. He is recognized as the first outsider to lead GE in its 126-year history. Rahul Ghai Senior Vice President and Chief Financial Officer
Mr. Ghai joined GE Aerospace in August 2022 and held the role of CFO for GE from September 2023 through the spin-off of GE Vernova in April 2024. Before joining GE Aerospace, he served as CFO of Otis Elevators starting July 2019, where he was instrumental in its spin from United Technologies Corporation. Previously, Mr. Ghai was CFO of Harris Corporation for four years, where he contributed to tripling the company's stock price by focusing on divesting non-strategic assets and investing in technology. His career includes executive-level finance roles at Aetna Insurance, Carrier Corporation, and UTC Fire and Security, where he demonstrated a strong track record of driving transformation and was involved in multiple M&A transactions. He began his career in the financial services industry in India. Mohamed Ali President and CEO, Commercial Engines & Services
Mr. Ali leads GE Aerospace's approximately $33 billion Commercial Engines & Services business, overseeing the entire lifecycle of its commercial engine operations, from engineering and supply chain to manufacturing and aftermarket services. He began his career with GE in 1997 as a research scientist. Amy Gowder President and CEO, Defense and Systems
Ms. Gowder leads the operations responsible for developing and manufacturing engines and systems for various military applications, including air combat, trainer, tanker, helicopter, and marine. She brings over 20 years of leadership experience within the aerospace and technology industry. Riccardo Procacci President and CEO, Propulsion and Additive Technologies
A 30-year veteran of General Electric, Mr. Procacci is responsible for four independent companies: Avio Aero, Unison, Dowty, and Colibrium Additive, which support both GE Aerospace and external customers globally. He was appointed CEO of Avio Aero in 2013 and later expanded his leadership to include GE Additive, Dowty Propellers, and Unison Industries.
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Here are the key risks to GE Aerospace:
-
Cyclicality and Volatility of the Aviation Industry: GE Aerospace's business is highly sensitive to the economic health of the global aviation sector. Factors such as global economic downturns, geopolitical events, fuel price volatility, and changes in air travel demand can significantly impact orders for new aircraft engines and the demand for aftermarket services like maintenance, repair, and overhaul (MRO).
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Reliance on Major Aircraft Manufacturers and Production Rates: A significant portion of GE Aerospace's engine sales are to a limited number of major aircraft manufacturers, such as Boeing and Airbus, often through joint ventures like CFM International. Production delays, quality control issues, or strategic shifts by these key customers can directly impact GE Aerospace's engine delivery schedules and revenue streams.
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High Costs and Technological Risks of Developing Next-Generation Propulsion Systems: GE Aerospace is heavily invested in developing advanced and sustainable aviation technologies, including next-generation propulsion systems. These programs require substantial research and development (R&D) investments over long cycles, carrying risks of cost overruns, technical challenges, and the potential failure to meet performance or market expectations.
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GE Aerospace operates within several substantial global addressable markets related to aviation propulsion and services.
- The global aircraft engine market, encompassing both commercial and military applications, was valued at approximately USD 161.6 billion in 2025 and is projected to grow to USD 248 billion by 2034.
- For commercial aircraft engines specifically, the market size is expected to grow from USD 95.56 billion in 2025 to USD 117.13 billion by 2031 globally.
- The global military aircraft engine market was valued at around USD 34.29 billion in 2025 and is projected to reach USD 67.19 billion by 2032.
- The global aircraft Maintenance, Repair, and Overhaul (MRO) market, a key service offering for GE Aerospace, was valued at USD 91.35 billion in 2024 and is expected to reach USD 678.58 billion by 2032.
- The global aerospace parts manufacturing market, which includes advanced engine components, was valued at USD 1019.73 billion in 2025 and is projected to grow to USD 1486.16 billion by 2034.
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GE Aerospace (NYSE: GE) is expected to drive future revenue growth over the next 2-3 years through several key areas:
- Robust Commercial Aftermarket Services Growth: A primary driver of revenue growth is the expanding commercial aftermarket services business. This is fueled by GE Aerospace's large installed base of jet engines, particularly the CFM LEAP engines which are entering a more intensive aftermarket cycle. Increased flight hours globally and a strong backlog of long-term service agreements translate into higher demand for maintenance, repair, and overhaul (MRO) services and spare parts.
- Increased Deliveries of New Commercial Engines: While aftermarket services offer higher margins, the continuous increase in deliveries of new commercial engines, especially the LEAP family, is critical for expanding the installed base. This growth in new engine sales directly feeds the long-term pipeline for future, high-margin aftermarket service revenue, driven by ongoing demand for new aircraft and fleet modernization.
- Expansion in the Defense & Propulsion Technologies (DPT) Segment: The Defense & Propulsion Technologies segment is contributing significantly to revenue growth with increasing orders and deliveries. This growth is supported by strong defense budgets, new contract wins, and strategic investments in manufacturing capacity for defense platforms.
- Global Air Travel Recovery and Higher Fleet Utilization: The ongoing rebound in global air travel, with passenger traffic surpassing pre-pandemic levels, directly translates into more flight hours for the existing fleet. This heightened utilization of aircraft increases engine wear and tear, thereby boosting the demand for GE Aerospace's engine maintenance and repair services.
- Strategic Investments in Manufacturing Capacity and International Market Expansion: GE Aerospace is investing over $1 billion annually in its U.S. manufacturing sites and MRO capabilities to accelerate engine deliveries and strengthen its industrial base. The company is also targeting profitable growth in international markets, particularly in regions like India and the Middle East, where its engines demonstrate a competitive advantage in "hot-and-high" operating environments.
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Share Repurchases
- GE Aerospace has an ongoing multi-year share repurchase program with approximately $14.5 billion repurchased so far under a March 2024 authorization for 65.6 million shares.
- The company plans to increase capital returns from 2024 to 2026 to approximately $24 billion, which includes a $19 billion share buyback authorization, subject to Board approval.
- GE Aerospace accelerated repurchase activity in 2025 and expects to continue this trend in 2026.
Share Issuance
- In July 2021, GE executed a 1-for-8 reverse stock split, reducing the number of outstanding shares from approximately 8.8 billion to 1.1 billion.
Outbound Investments
- GE Aerospace has completed three acquisitions between 2022 and 2025.
- The most recent acquisition was Northstar Aerospace in June 2025, a manufacturer of components and assemblies for the aerospace industry.
Capital Expenditures
- GE Aerospace plans to invest $1 billion in its U.S. manufacturing sites and supplier base in 2026, marking its second consecutive year of such an investment. This investment aims to accelerate engine deliveries, ramp up durable parts production, and strengthen defense-related output.
- Since 2024, the company has committed over $2.5 billion to U.S. manufacturing and suppliers, with approximately $600 million directed towards sites producing defense engines over the last three years.
- Capital expenditures for fiscal years ending December 2021 to 2025 averaged $988.4 million, peaking at $1.273 billion in 2025. The company also plans to invest more than €110 million in its European manufacturing sites in 2026 to expand production capacity and advanced manufacturing.
Peer Outperformance in Aerospace & Defense
GE has outperformed 88% of its 51 Aerospace & Defense peers over 5Y. Among the peers that beat it is FTAI. Aerospace & Defense ranks 4th of 23 industries in Industrials by median 5Y return.
Share of Aerospace & Defense constituents that GE has outperformed, by holding period. Peers without a full price history over a given window are excluded from that window.
1Y
65%
of 68 industry peers · -4.3% return
3Y
83%
of 58 industry peers · 256.7% return
5Y
88%
of 51 industry peers · 367.3% return
Aerospace & Defense peers with revenue growth within 4pp of GE's that beat it on at least 2 of 3 windows, and by at least 20pp over 5Y. Growth is matched by construction, so the gap is largely a re-rating gap. The multiple column is the context for it.
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| GE | GE Aerospace | 40.1% | 33.8x | -4.3% | 256.7% | 367.3% | — |
| FTAI | FTAI Aviation | 43.1% | 32.8x | -13.6% | 355.0% | 714.1% | +347pp |
Price returns, excluding dividends. P/E shown for context only and not used for matching.
Median price return by industry across the Industrials sector, ranked by 5Y. Aerospace & Defense is GE's own industry. Use this to see which corners of the sector have carried the returns.
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Construction & Engineering | 30 | -4.8% | 121.3% | 153.5% | STRL 1507% · FIX 1488% · AGX 783% |
| Marine Transportation | 5 | 54.5% | 55.5% | 146.4% | MATX 198% · KEX 146% |
| Construction Machinery & Heavy Transportation Equipment | 13 | -2.1% | 62.7% | 95.9% | CAT 294% · ALSN 256% · WAB 223% |
| Aerospace & Defense ← | 52 | -13.6% | 61.4% | 64.5% | ATI 1012% · FTAI 714% · HWM 563% |
| Trading Companies & Distributors | 19 | 13.4% | 41.4% | 62.4% | DXPE 425% · URI 247% · AIT 222% |
| Industrial Machinery & Supplies & Components | 72 | 1.6% | 58.8% | 38.5% | CRS 899% · MLI 351% · SYM 292% |
| Diversified Support Services | 34 | 15.0% | 43.7% | 34.6% | CXW 268% · OPLN 157% · CACI 145% |
| Rail Transportation | 7 | 35.6% | 66.8% | 31.4% | CSX 56% · UNP 40% · NSC 31% |
| Building Products | 32 | -9.0% | 21.3% | 26.9% | GFF 373% · TT 176% · JCI 140% |
| Cargo Ground Transportation | 16 | 36.9% | 11.6% | 20.2% | XPO 264% · R 263% · ARCB 54% |
| Electrical Components & Equipment | 37 | -8.9% | 78.2% | 10.9% | POWL 1955% · VRT 749% · BE 691% |
| Industrial Conglomerates | 17 | 9.0% | 6.5% | -4.7% | CSW 127% · DD 83% · CSL 65% |
| Agricultural & Farm Machinery | 16 | 0.2% | -7.4% | -11.8% | DE 102% · TTC 20% · AGCO -5% |
| Data Processing & Outsourced Services | 6 | -24.0% | 0.8% | -16.4% | EXLS 66% · BR 7% · G -14% |
| Security & Alarm Services | 9 | -55.6% | 27.9% | -18.1% | BCO 72% |
| Office Services & Supplies | 9 | 19.9% | 17.8% | -20.4% | PBI 214% · TILE 152% · HNI 54% |
| Environmental & Facilities Services | 29 | -31.4% | 37.5% | -23.0% | GEO 269% · CLH 180% · RSG 94% |
| Research & Consulting Services | 13 | -0.8% | -18.0% | -27.0% | HURN 297% · BAH 16% · FCN 11% |
| Passenger Airlines | 11 | -0.8% | 30.5% | -31.9% | LTM 3073% · UAL 129% · DAL 117% |
| Passenger Ground Transportation | 3 | -31.8% | 59.5% | -35.2% | UBER 47% · CAR -35% · LYFT -64% |
| Air Freight & Logistics | 12 | -23.5% | -6.6% | -39.1% | FDX 80% · EXPD 77% · CHRW 66% |
| Human Resource & Employment Services | 22 | 15.0% | -6.5% | -42.4% | ADP 48% · FA 12% · PAYX 4% |
| Airport Services | 4 | -53.6% | -56.0% | -85.2% | JOBY -43% |
Median of constituents with a full price history over each window. Top names are limited to companies above $2B market cap.
Latest Trefis Analyses
Research & Analysis
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 258.58 |
| Mkt Cap | 138.4 |
| Rev LTM | 65,846 |
| Op Inc LTM | 9,258 |
| FCF LTM | 5,924 |
| FCF 3Y Avg | 5,468 |
| CFO LTM | 7,358 |
| CFO 3Y Avg | 6,627 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 15.6% |
| Rev Chg 3Y Avg | 10.9% |
| Rev Chg Q | 9.5% |
| QoQ Delta Rev Chg LTM | 2.3% |
| Op Inc Chg LTM | 36.9% |
| Op Inc Chg 3Y Avg | 13.9% |
| Op Mgn LTM | 11.8% |
| Op Mgn 3Y Avg | 10.3% |
| QoQ Delta Op Mgn LTM | 0.2% |
| CFO/Rev LTM | 12.4% |
| CFO/Rev 3Y Avg | 11.4% |
| FCF/Rev LTM | 9.1% |
| FCF/Rev 3Y Avg | 8.4% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Commercial Engines & Services | 33,314 | 26,881 | 23,855 | 18,813 | |
| Defense & Propulsion Technologies | 10,554 | 9,478 | 8,961 | 7,989 | |
| Corporate & Other | 1,987 | 2,343 | 2,532 | 2,337 | |
| Aerospace | 21,310 | ||||
| Corporate | 2,559 | ||||
| Power | 16,903 | ||||
| Renewable Energy | 15,697 | ||||
| Total | 45,855 | 38,702 | 35,348 | 29,139 | 56,469 |
| $ Mil | 1999 | 1998 | 1997 | 1996 | 1995 |
|---|---|---|---|---|---|
| Aircraft Engines | 2,105 | 1,769 | 1,051 | 1,225 | 1,176 |
| Industrial Products & Systems | 2,095 | 1,880 | 1,490 | 1,617 | 1,519 |
| Power Systems | 1,693 | 1,306 | |||
| Plastics | 1,651 | 1,584 | |||
| NBC | 1,576 | ||||
| Technical Products & Services | 1,359 | 1,109 | 828 | 849 | 801 |
| Appliances | 655 | 755 | 458 | 750 | 697 |
| All Other | 271 | 2,951 | 2,437 | ||
| Broadcasting | 1,349 | 1,002 | 953 | 738 | |
| Financing | 3,796 | 3,736 | 3,465 | 3,045 | |
| Materials | 1,476 | 1,466 | 1,465 | ||
| Power Generation | 758 | 1,068 | 769 | ||
| Specialty Insurance | 1,293 | 1,234 | 1,020 | ||
| Total | 11,134 | 13,819 | 15,043 | 15,064 | 11,230 |
| $ Mil | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Corporate | 82,175 | 81,692 | 97,301 | 114,220 | 29,269 |
| Aerospace | 39,985 | 39,243 | 38,298 | 38,634 | 41,083 |
| Power | 23,255 | 22,173 | 23,569 | 24,453 | 26,731 |
| Renewable Energy | 15,936 | 15,719 | 14,804 | 15,927 | 15,935 |
| Assets of discontinued operations | 1,695 | 2,892 | 40,749 | 4,109 | |
| Healthcare | 26,070 | 22,229 | 30,503 | ||
| Capital | 117,546 | ||||
| Total | 163,046 | 187,789 | 173,972 | 256,212 | 265,176 |
Price Behavior
Price Behavior
| Market Price | $297.66 | |
| Market Cap ($ Bil) | 308.1 | |
| First Trading Date | 01/02/1962 | |
| Distance from 52W High | -21.8% | |
| 50 Days | 200 Days | |
| DMA Price | $320.18 | $322.22 |
| DMA Trend | down | indeterminate |
| Distance from DMA | -7.0% | -7.6% |
| 3M | 1YR | |
| Volatility | 27.4% | 33.2% |
| Downside Capture | 134.58 | 121.64 |
| Upside Capture | -3.03 | 97.96 |
| Correlation (S&P 500) | 30.0% | 46.7% |
GE Betas & Captures as of 9/30/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.20 | 0.98 | 1.01 | 1.21 | 1.25 | 1.16 |
| Up Beta | 0.58 | 1.66 | 0.82 | 1.99 | 1.64 | 1.14 |
| Down Beta | 1.71 | 1.75 | 0.85 | 0.56 | 0.97 | 1.17 |
| Up Capture | 81% | 17% | 63% | 100% | 123% | 224% |
| Bmk +ve Days | 6 | 16 | 27 | 66 | 132 | 424 |
| Stock +ve Days | 9 | 19 | 34 | 71 | 136 | 426 |
| Down Capture | 207% | 161% | 172% | 118% | 118% | 101% |
| Bmk -ve Days | 16 | 26 | 37 | 60 | 120 | 328 |
| Stock -ve Days | 13 | 23 | 30 | 55 | 116 | 322 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GE | |
|---|---|---|---|---|
| GE | -1.5% | 33.2% | -0.01 | - |
| Sector ETF (XLI) | 9.4% | 17.2% | 0.35 | 69.9% |
| Equity (SPY) | 14.6% | 12.7% | 0.79 | 47.1% |
| Gold (GLD) | -1.4% | 28.5% | -0.06 | 19.9% |
| Commodities (DBC) | 47.3% | 20.6% | 1.76 | -35.7% |
| Real Estate (VNQ) | 3.8% | 13.9% | 0.02 | 28.2% |
| Bitcoin (BTCUSD) | -27.9% | 43.4% | -0.63 | 18.6% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GE | |
|---|---|---|---|---|
| GE | 35.9% | 31.0% | 1.02 | - |
| Sector ETF (XLI) | 11.8% | 17.6% | 0.50 | 68.7% |
| Equity (SPY) | 12.8% | 17.1% | 0.56 | 59.0% |
| Gold (GLD) | 17.6% | 18.9% | 0.75 | 9.9% |
| Commodities (DBC) | 9.2% | 19.5% | 0.35 | 3.6% |
| Real Estate (VNQ) | 1.0% | 18.9% | -0.06 | 39.4% |
| Bitcoin (BTCUSD) | 4.5% | 51.6% | 0.27 | 24.8% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GE | |
|---|---|---|---|---|
| GE | 9.0% | 36.6% | 0.34 | - |
| Sector ETF (XLI) | 13.3% | 20.1% | 0.58 | 66.9% |
| Equity (SPY) | 15.5% | 17.9% | 0.73 | 55.4% |
| Gold (GLD) | 12.0% | 16.4% | 0.60 | 2.1% |
| Commodities (DBC) | 8.2% | 18.1% | 0.37 | 18.3% |
| Real Estate (VNQ) | 5.2% | 20.7% | 0.21 | 44.1% |
| Bitcoin (BTCUSD) | 62.2% | 66.2% | 1.02 | 13.8% |
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Returns Analyses
Earnings Returns History
Updated 10/28/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/20/2026 | -3.7% | -7.3% | |
| 7/16/2026 | -4.1% | -5.3% | 0.1% |
| 4/21/2026 | -5.6% | -6.3% | -6.0% |
| 1/22/2026 | -7.4% | -8.2% | 7.8% |
| 10/21/2025 | 1.3% | 3.4% | -2.2% |
| 7/17/2025 | -2.2% | -1.1% | 1.3% |
| 4/22/2025 | 6.1% | 12.6% | 31.9% |
| 1/23/2025 | 6.6% | 5.7% | 6.1% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 13 | 16 |
| # Negative | 12 | 12 | 8 |
| Median Positive | 4.6% | 4.4% | 7.5% |
| Median Negative | -3.9% | -4.0% | -3.9% |
| Max Positive | 8.3% | 12.6% | 47.9% |
| Max Negative | -10.3% | -15.9% | -17.1% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/20/2026 | -3.7% | -7.3% | |
| 7/16/2026 | -4.1% | -5.3% | 0.1% |
| 4/21/2026 | -5.6% | -6.3% | -6.0% |
| 1/22/2026 | -7.4% | -8.2% | 7.8% |
| 10/21/2025 | 1.3% | 3.4% | -2.2% |
| 7/17/2025 | -2.2% | -1.1% | 1.3% |
| 4/22/2025 | 6.1% | 12.6% | 31.9% |
| 1/23/2025 | 6.6% | 5.7% | 6.1% |
| 10/22/2024 | -9.0% | -9.7% | -8.6% |
| 7/23/2024 | 5.7% | 4.4% | 4.4% |
| 4/23/2024 | 8.3% | 9.5% | 7.2% |
| 1/23/2024 | -1.0% | -0.1% | 13.6% |
| 10/24/2023 | 6.5% | 2.9% | 12.4% |
| 7/25/2023 | 6.3% | 3.6% | 1.3% |
| 4/25/2023 | -1.7% | 1.0% | 1.5% |
| 1/24/2023 | 1.2% | 1.3% | 4.3% |
| 10/25/2022 | -0.5% | 6.1% | 19.0% |
| 7/26/2022 | 4.6% | 10.9% | 11.3% |
| 4/26/2022 | -10.3% | -15.9% | -17.1% |
| 1/25/2022 | -6.0% | -2.5% | -4.4% |
| 10/26/2021 | 2.0% | 0.9% | -3.1% |
| 7/27/2021 | 1.2% | -2.7% | -0.1% |
| 4/27/2021 | -0.6% | -0.9% | -3.3% |
| 1/26/2021 | 2.7% | -2.3% | 19.4% |
| 10/28/2020 | 4.5% | 10.6% | 47.9% |
| SUMMARY STATS | |||
| # Positive | 13 | 13 | 16 |
| # Negative | 12 | 12 | 8 |
| Median Positive | 4.6% | 4.4% | 7.5% |
| Median Negative | -3.9% | -4.0% | -3.9% |
| Max Positive | 8.3% | 12.6% | 47.9% |
| Max Negative | -10.3% | -15.9% | -17.1% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 10/20/2026 | 10-Q |
| 06/30/2026 | 07/16/2026 | 10-Q |
| 03/31/2026 | 04/21/2026 | 10-Q |
| 12/31/2025 | 01/29/2026 | 10-K |
| 09/30/2025 | 10/21/2025 | 10-Q |
| 06/30/2025 | 07/21/2025 | 10-Q |
| 03/31/2025 | 04/22/2025 | 10-Q |
| 12/31/2024 | 02/03/2025 | 10-K |
| 09/30/2024 | 10/22/2024 | 10-Q |
| 06/30/2024 | 07/23/2024 | 10-Q |
| 03/31/2024 | 04/23/2024 | 10-Q |
| 12/31/2023 | 02/02/2024 | 10-K |
| 09/30/2023 | 10/24/2023 | 10-Q |
| 06/30/2023 | 07/25/2023 | 10-Q |
| 03/31/2023 | 04/25/2023 | 10-Q |
| 12/31/2022 | 02/10/2023 | 10-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 10/20/2026 | 10-Q |
| 06/30/2026 | 07/16/2026 | 10-Q |
| 03/31/2026 | 04/21/2026 | 10-Q |
| 12/31/2025 | 01/29/2026 | 10-K |
| 09/30/2025 | 10/21/2025 | 10-Q |
| 06/30/2025 | 07/21/2025 | 10-Q |
| 03/31/2025 | 04/22/2025 | 10-Q |
| 12/31/2024 | 02/03/2025 | 10-K |
| 09/30/2024 | 10/22/2024 | 10-Q |
| 06/30/2024 | 07/23/2024 | 10-Q |
| 03/31/2024 | 04/23/2024 | 10-Q |
| 12/31/2023 | 02/02/2024 | 10-K |
| 09/30/2023 | 10/24/2023 | 10-Q |
| 06/30/2023 | 07/25/2023 | 10-Q |
| 03/31/2023 | 04/25/2023 | 10-Q |
| 12/31/2022 | 02/10/2023 | 10-K |
| 09/30/2022 | 10/25/2022 | 10-Q |
| 06/30/2022 | 07/26/2022 | 10-Q |
| 03/31/2022 | 04/26/2022 | 10-Q |
| 12/31/2021 | 02/11/2022 | 10-K |
| 09/30/2021 | 10/26/2021 | 10-Q |
| 06/30/2021 | 07/27/2021 | 10-Q |
| 03/31/2021 | 04/27/2021 | 10-Q |
| 12/31/2020 | 02/12/2021 | 10-K |
| 09/30/2020 | 10/28/2020 | 10-Q |
| 06/30/2020 | 07/29/2020 | 10-Q |
| 03/31/2020 | 04/29/2020 | 10-Q |
| 12/31/2019 | 02/24/2020 | 10-K |
Recent Forward Guidance
Updated 10/21/2026Latest: Q3 2026 Earnings Reported 10/20/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Operating Profit | Reported | 10.90 Bil | 10.95 Bil | 11.00 Bil | 2.8% | Raised | Guidance: 10.65 Bil for 2026 | |
| 2026 FCF conversion | Reported | 1 | 1 | |||||
| 2026 Commercial Engines & Services Operating Profit | Reported | 10.50 Bil | 10.55 Bil | 10.60 Bil | 2.4% | Raised | Guidance: 10.30 Bil for 2026 | |
| 2026 Defense & Propulsion Technologies Operating Profit | Reported | 1.60 Bil | 1.65 Bil | 1.70 Bil | 0.0% | Affirmed | Guidance: 1.65 Bil for 2026 | |
| 2026 Adjusted Revenue Growth | Reported | 19.0% | 19.5% | 20.0% | 2.0% | Raised | Guidance: 17.5% for 2026 | |
| 2026 Commercial Engines & Services Revenue Growth | Reported | Raised | Guidance: 20.0% for 2026 | |||||
| 2026 CES Services Revenue Growth | Reported | |||||||
| 2026 CES Equipment Revenue Growth | Reported | |||||||
| 2026 Defense & Propulsion Technologies Revenue Growth | Reported | |||||||
| 2026 Adjusted EPS | Reported | 8 | 8.05 | 8.1 | 3.9% | Raised | Guidance: 7.75 for 2026 | |
| 2026 Free Cash Flow | Reported | 9.10 Bil | 9.25 Bil | 9.40 Bil | 2.2% | Raised | Guidance: 9.05 Bil for 2026 | |
| 2027 Commercial Services Revenue Growth | Reported | |||||||
Prior: Q2 2026 Earnings Reported 7/16/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Operating Profit | Reported | 10.55 Bil | 10.65 Bil | 10.75 Bil | 6.0% | Raised | Guidance: 10.05 Bil for 2026 | |
| 2026 CES Operating Profit | Reported | 10.25 Bil | 10.30 Bil | 10.35 Bil | 5.6% | Raised | Guidance: 9.75 Bil for 2026 | |
| 2026 DPT Operating Profit | Reported | 1.60 Bil | 1.65 Bil | 1.70 Bil | 3.1% | Raised | Guidance: 1.60 Bil for 2026 | |
| 2026 Adjusted Revenue Growth | Reported | 17.0% | 17.5% | |||||
| 2026 CES Revenue Growth | Reported | 20.0% | 5.0% | Raised | Guidance: 15.0% for 2026 | |||
| 2026 Adjusted EPS | Reported | 7.65 | 7.75 | 7.85 | 6.9% | Raised | Guidance: 7.25 for 2026 | |
| 2026 Free Cash Flow | Reported | 8.90 Bil | 9.05 Bil | 9.20 Bil | 10.4% | Raised | Guidance: 8.20 Bil for 2026 | |
Q1 2026 Earnings Reported 4/21/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Operating Profit | Reported | 9.85 Bil | 10.05 Bil | 10.25 Bil | 0 | Affirmed | Guidance: 10.05 Bil for 2026 | |
| 2026 CES Operating Profit | Reported | 9.60 Bil | 9.75 Bil | 9.90 Bil | 0 | Affirmed | Guidance: 9.75 Bil for 2026 | |
| 2026 DPT Operating Profit | Reported | 1.55 Bil | 1.60 Bil | 1.65 Bil | 0 | Affirmed | Guidance: 1.60 Bil for 2026 | |
| 2026 CES Revenue Growth | Reported | 15.0% | Affirmed | |||||
| 2026 DPT Revenue Growth | Reported | 5.0% | 7.0% | 9.0% | Affirmed | |||
| 2026 Adjusted EPS | Reported | 7.1 | 7.25 | 7.4 | 0 | Affirmed | Guidance: 7.25 for 2026 | |
| 2026 Free Cash Flow | Reported | 8.00 Bil | 8.20 Bil | 8.40 Bil | 0 | Affirmed | Guidance: 8.20 Bil for 2026 | |
Q4 2025 Earnings Reported 1/22/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Operating Profit | Reported | 9.85 Bil | 10.05 Bil | 10.25 Bil | 14.9% | Higher New | Actual: 8.75 Bil for 2025 | |
| 2026 Commercial Engines & Services (CES) Operating Profit | Reported | 9.60 Bil | 9.75 Bil | 9.90 Bil | 14.0% | Higher New | Actual: 8.55 Bil for 2025 | |
| 2026 Defense & Propulsion Technologies (DPT) Operating Profit | Reported | 1.55 Bil | 1.60 Bil | 1.65 Bil | 28.0% | Higher New | Actual: 1.25 Bil for 2025 | |
| 2026 Corporate Cost & Eliminations Operating Profit | Reported | -1.30 Bil | -1.25 Bil | -1.20 Bil | ||||
| 2026 Adjusted Revenue Growth | Reported | Lower New | Actual: 17.5% for 2025 | |||||
| 2026 CES Services Revenue | Reported | |||||||
| 2026 CES Equipment Revenue | Reported | |||||||
| 2026 Commercial Engines & Services (CES) Revenue | Reported | |||||||
| 2026 Defense & Propulsion Technologies (DPT) Revenue | Reported | |||||||
| 2026 Adjusted EPS | Reported | 7.1 | 7.25 | 7.4 | 18.9% | Higher New | Actual: 6.1 for 2025 | |
| 2026 Free Cash Flow | Reported | 8.00 Bil | 8.20 Bil | 8.40 Bil | 13.9% | Higher New | Actual: 7.20 Bil for 2025 | |
Insider Activity
Updated 8/12/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Giglietti, Robert M | Vice President | Direct | Sell | 8122026 | 369.92 | 10,242 | 3,788,752 | 7,472,815 | Form |
| 2 | Procacci, Riccardo | Senior Vice President | Direct | Sell | 7272026 | 347.92 | 1,517 | 527,795 | 11,144,235 | Form |
| 3 | Procacci, Riccardo | Senior Vice President | Direct | Sell | 2042026 | 310.11 | 800 | 248,088 | 4,942,843 | Form |
| 4 | Gowder, Amy L | Senior Vice President | Direct | Sell | 2032026 | 305.73 | 4,000 | 1,222,920 | 5,055,246 | Form |
| 5 | Stokes, Russell | Senior Vice President | Direct | Sell | 2032026 | 306.47 | 30,363 | 9,305,490 | 46,104,207 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Giglietti, Robert M | Vice President | Direct | Sell | 8122026 | 369.92 | 10,242 | 3,788,752 | 7,472,815 | Form |
| 2 | Procacci, Riccardo | Senior Vice President | Direct | Sell | 7272026 | 347.92 | 1,517 | 527,795 | 11,144,235 | Form |
| 3 | Procacci, Riccardo | Senior Vice President | Direct | Sell | 2042026 | 310.11 | 800 | 248,088 | 4,942,843 | Form |
| 4 | Gowder, Amy L | Senior Vice President | Direct | Sell | 2032026 | 305.73 | 4,000 | 1,222,920 | 5,055,246 | Form |
| 5 | Stokes, Russell | Senior Vice President | Direct | Sell | 2032026 | 306.47 | 30,363 | 9,305,490 | 46,104,207 | Form |
| 6 | Giglietti, Robert M | Vice President | Direct | Sell | 2032026 | 305.51 | 3,035 | 927,235 | 3,233,255 | Form |
| 7 | Stokes, Russell | Senior Vice President | Direct | Sell | 11202025 | 297.71 | 8,000 | 2,381,680 | 44,785,706 | Form |
| 8 | Ali, Mohamed | Senior Vice President | Direct | Sell | 8062025 | 268.79 | 1,517 | 407,755 | 2,253,536 | Form |
Investor Activity (13F)
Updated Oct 28, 202613F holdings as of Mar 31, 2026 (Q1 2026)
Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| TCI Fund Management LTD | $13.5 Bil | 29.8% | 10 | Hold | 13F |
| Trian Fund Management, L.P. | $1.1 Bil | 29.6% | 9 | Hold | 13F |
| Evergreen Quality Fund GP, Ltd. | $598.1 Mil | 13.7% | 40 | Hold | 13F |
| Oribel Capital Management, LP | $81.5 Mil | 12.4% | 41 | ADD +767.4% | 13F |
| Milestones Administradora de Recursos Ltda. | $46.6 Mil | 12.2% | 17 | ADD +37.4% | 13F |
| Skye Global Management LP | $341.1 Mil | 7.3% | 44 | Hold | 13F |
| Spectrum Financial Alliance Ltd LLC | $37.6 Mil | 7.2% | 32 | ADD +6.2% | 13F |
| KADENSA CAPITAL Ltd | $43.3 Mil | 6.0% | 39 | Hold | 13F |
| Codex Capital Asset Management L.L.C. | $15.4 Mil | 6.0% | 31 | Hold | 13F |
| XN LP | $161.5 Mil | 5.9% | 23 | Hold | 13F |
| Newbrook Capital Advisors LP | $30.0 Mil | 5.6% | 15 | TRIM -5.8% | 13F |
| 11 Capital Partners LP | $16.4 Mil | 5.3% | 19 | TRIM -27.5% | 13F |
| SRB Corp | $85.4 Mil | 5.2% | 44 | TRIM -18.6% | 13F |
| Night Owl Capital Management, LLC | $44.1 Mil | 5.1% | 30 | Hold | 13F |
| Cartenna Capital, LP | $103.6 Mil | 4.5% | 41 | New | 13F |
| One Madison Group LLC | $37.9 Mil | 4.4% | 28 | TRIM -5.3% | 13F |
| Bristol Gate Capital Partners Inc. | $66.8 Mil | 4.3% | 31 | TRIM -6.2% | 13F |
| Mar Vista Investment Partners LLC | $36.4 Mil | 3.6% | 35 | ADD +72.1% | 13F |
| Thames Capital Management LLC | $17.6 Mil | 3.2% | 43 | Hold | 13F |
| Windmill Hill Asset Management Ltd | $9.0 Mil | 2.8% | 23 | Hold | 13F |
| Cambridge Financial Group, Inc. | $6.8 Mil | 2.6% | 33 | Hold | 13F |
| Makena Capital Management LLC | $18.9 Mil | 2.2% | 27 | TRIM -8.4% | 13F |
| DSM Capital Partners LLC | $106.7 Mil | 1.9% | 44 | TRIM -32.0% | 13F |
| Mark Asset Management LP | $10.6 Mil | 1.4% | 31 | TRIM -7.6% | 13F |
| Troluce Capital Advisors LLC | $6.8 Mil | 0.7% | 46 | New | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Cartenna Capital, LP | $103.6 Mil | 4.5% | 41 | New | 13F |
| Troluce Capital Advisors LLC | $6.8 Mil | 0.7% | 46 | New | 13F |
| Oribel Capital Management, LP | $81.5 Mil | 12.4% | 41 | ADD +767.4% | 13F |
| Mar Vista Investment Partners LLC | $36.4 Mil | 3.6% | 35 | ADD +72.1% | 13F |
| Milestones Administradora de Recursos Ltda. | $46.6 Mil | 12.2% | 17 | ADD +37.4% | 13F |
| Spectrum Financial Alliance Ltd LLC | $37.6 Mil | 7.2% | 32 | ADD +6.2% | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | As Of | Filing |
|---|---|---|---|---|---|---|
| Bornite Capital Management LP | $63.6 Mil | 6.2% | 28 | Exited | Dec 31, 2025 | 13F |
| DSM Capital Partners LLC | $106.7 Mil | 1.9% | 44 | TRIM -32.0% | Mar 31, 2026 | 13F |
| 11 Capital Partners LP | $16.4 Mil | 5.3% | 19 | TRIM -27.5% | Mar 31, 2026 | 13F |
| SRB Corp | $85.4 Mil | 5.2% | 44 | TRIM -18.6% | Mar 31, 2026 | 13F |
| Makena Capital Management LLC | $18.9 Mil | 2.2% | 27 | TRIM -8.4% | Mar 31, 2026 | 13F |
| Mark Asset Management LP | $10.6 Mil | 1.4% | 31 | TRIM -7.6% | Mar 31, 2026 | 13F |
| Bristol Gate Capital Partners Inc. | $66.8 Mil | 4.3% | 31 | TRIM -6.2% | Mar 31, 2026 | 13F |
| Newbrook Capital Advisors LP | $30.0 Mil | 5.6% | 15 | TRIM -5.8% | Mar 31, 2026 | 13F |
| One Madison Group LLC | $37.9 Mil | 4.4% | 28 | TRIM -5.3% | Mar 31, 2026 | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| TCI Fund Management LTD | $13.5 Bil | 29.8% | 10 | Hold | 13F |
| Trian Fund Management, L.P. | $1.1 Bil | 29.6% | 9 | Hold | 13F |
| Evergreen Quality Fund GP, Ltd. | $598.1 Mil | 13.7% | 40 | Hold | 13F |
| Skye Global Management LP | $341.1 Mil | 7.3% | 44 | Hold | 13F |
| XN LP | $161.5 Mil | 5.9% | 23 | Hold | 13F |
| DSM Capital Partners LLC | $106.7 Mil | 1.9% | 44 | TRIM -32.0% | 13F |
| Cartenna Capital, LP | $103.6 Mil | 4.5% | 41 | New | 13F |
| SRB Corp | $85.4 Mil | 5.2% | 44 | TRIM -18.6% | 13F |
| Oribel Capital Management, LP | $81.5 Mil | 12.4% | 41 | ADD +767.4% | 13F |
| Bristol Gate Capital Partners Inc. | $66.8 Mil | 4.3% | 31 | TRIM -6.2% | 13F |
| Milestones Administradora de Recursos Ltda. | $46.6 Mil | 12.2% | 17 | ADD +37.4% | 13F |
| Night Owl Capital Management, LLC | $44.1 Mil | 5.1% | 30 | Hold | 13F |
| KADENSA CAPITAL Ltd | $43.3 Mil | 6.0% | 39 | Hold | 13F |
| One Madison Group LLC | $37.9 Mil | 4.4% | 28 | TRIM -5.3% | 13F |
| Spectrum Financial Alliance Ltd LLC | $37.6 Mil | 7.2% | 32 | ADD +6.2% | 13F |
| Mar Vista Investment Partners LLC | $36.4 Mil | 3.6% | 35 | ADD +72.1% | 13F |
| Newbrook Capital Advisors LP | $30.0 Mil | 5.6% | 15 | TRIM -5.8% | 13F |
| Makena Capital Management LLC | $18.9 Mil | 2.2% | 27 | TRIM -8.4% | 13F |
| Thames Capital Management LLC | $17.6 Mil | 3.2% | 43 | Hold | 13F |
| 11 Capital Partners LP | $16.4 Mil | 5.3% | 19 | TRIM -27.5% | 13F |
| Codex Capital Asset Management L.L.C. | $15.4 Mil | 6.0% | 31 | Hold | 13F |
| Mark Asset Management LP | $10.6 Mil | 1.4% | 31 | TRIM -7.6% | 13F |
| Windmill Hill Asset Management Ltd | $9.0 Mil | 2.8% | 23 | Hold | 13F |
| Cambridge Financial Group, Inc. | $6.8 Mil | 2.6% | 33 | Hold | 13F |
| Troluce Capital Advisors LLC | $6.8 Mil | 0.7% | 46 | New | 13F |
GE Trade Sentinel
Stock Conviction
Constructive
CONVICTION RATIONALE
Conviction is constructive, based on a massive $212,084 backlog and a growing installed base that provides exceptional multi-year visibility into high-margin service revenues. While growth rates are normalizing, leading indicators like 49% order growth remain strong. The primary watch item is an aggressive capital allocation strategy that is increasing balance sheet leverage.
STOCK ARCHETYPE
Installed Base / Aftermarket (Razor/Razorblade)(Size of Installed Engine Base) x (Utilization per Engine) x (Service Revenue per Event/Hour) High-margin aftermarket services, including spare parts sales and long-term service agreements, which constitute approximately 70% of total revenue.
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INVESTMENT THESIS
Evidence suggests the market is overly focused on slowing growth rates, underappreciating the durability of a massive, high-margin services annuity.
Mechanism:
The 80,000-engine installed base generates recurring services revenue, representing 70% of the business. With a $212,084 million backlog and 2027 services growth guided to low double-digit, this annuity should drive durable cash flow.
Supporting Evidence:
- Remaining Performance Obligation (RPO) was $212,084 million as of September 30, 2026.
- Total company orders grew 49% in the third quarter of 2026.
- Commercial services orders were up 23% in the third quarter.
- Management raised full-year 2026 free cash flow guidance to $9.1 billion-$9.4 billion.
- The LEAP engine installed base is expected to more than double between 2025 and 2030.
PRIMARY RISK
The market may be correct that decelerating growth warrants a lower valuation, a risk compounded by rising debt from an aggressive acquisition and buyback strategy.
Mechanism:
A sharper-than-expected slowdown in air travel would pressure services revenue, while rising interest rates could make the increased debt burden more costly.
Supporting Evidence:
- Management guides for 'low double-digit' commercial services growth in 2027.
- Net debt increased to $10.6 billion from $7.3 billion a year earlier.
- A pending $11.75 billion acquisition will be partially funded with new debt.
- Shareholder payouts of $10.2 billion exceeded free cash flow of $8 billion.
Key KPI Watchlist
| KPI | Status | Rationale |
|---|---|---|
| Commercial Engines & Services (CES) Revenue Growth | 21% year-over-year growth in Q3 2026 - Decelerating | The growth rate for the core Commercial Engines & Services segment has decelerated for three consecutive quarters. While management notes this is the sixth straight quarter of over 20% growth, the trend indicates a normalization from peak post-pandemic recovery rates against tougher year-over-year comparisons. |
| Commercial Engine Deliveries Growth | 8% year-over-year growth in Q3 2026 - Decelerating | The growth in commercial engine deliveries, a leading indicator for future services revenue, has slowed significantly throughout the year. Management commentary focuses on improving the supply chain and achieving sequential growth in material inputs, suggesting a focus on absolute output rather than the decelerating YoY growth rate. |
| Commercial Services Orders Growth | up 23% (Q3 2026) | Indicates near-term demand for high-margin aftermarket parts and services, which is a primary driver of profitability. |
| LEAP Engine Deliveries | up 26% year-to-date (Q3 2026) | Measures the growth of the company's newest major engine platform, which seeds the future installed base for long-term, high-margin service revenue. |
| Internal Shop Visit Revenue Growth | 12% (Q3 2026) | Reflects the volume and value of engine overhauls performed in-house, a core component of the high-margin services business. |
Core Investment Debate
Durable Backlog vs. Decelerating Growth
BULL VIEW
Bulls focus on the backlog and 49% Q3 order growth, arguing these leading indicators ensure durable cash flow generation despite normalizing year-over-year revenue comparisons.
CORE TENSION
PREVAILING SENTIMENT
CAUTIOUSLY BULLISH
The latest evidence favors the bulls. The 49% surge in Q3 orders is a powerful leading indicator of future demand that outweighs concerns about comparisons to prior peak recovery quarters.
BEAR VIEW
Bears focus on the three-quarter trend of decelerating revenue growth and the 2027 outlook, arguing the peak growth cycle is over and the stock should be re-rated lower.
Next 6 months: Risks and Catalysts
| Timeline | Event & Metric To Watch |
|---|---|
by the end of 2026 | GE9X Certification Delay Watch: Company or regulatory announcements regarding the status of the GE9X mid-seal FAA certification. |
by the end of 2026 | GE9X Mid-Seal Certification Watch: Company is working to achieve FAA certification for the GE9X engine's upgraded mid-seal. |
1/20/2027 | Negative 2027 Outlook Watch: Any downward revision to 2027 services growth guidance or negative commentary on airline demand and fuel prices. |
1/20/2027 | Next Earnings Report Watch: Company is scheduled to report its next quarterly earnings. |
1/25/2027 | Peer Demand Weakness Watch: |
1/27/2027 | Peer Lockheed Martin Earnings Watch: Peer Lockheed Martin (LMT) is scheduled to report earnings. |
1/27/2027 | Peer Honeywell Earnings Watch: Peer Honeywell International (HON) is scheduled to report earnings. |
No set date | Working Capital Strain Watch: Continued divergence between receivables and revenue growth in the next earnings report, impacting free cash flow conversion. |
Key Events in Last 6 Months
| Date | Event | Stock Impact |
|---|---|---|
2026-10-20 | Q3 Earnings and Second Guidance Raise Details: On 2026-10-20, the company raised its 2026 guidance for Operating Profit, Adjusted EPS, Adjusted Revenue Growth, and Free Cash Flow, citing strong performance and demand. | -4.9% $311.28 -> $295.88 |
2026-09-08 | Major Acquisition Announced Details: On 2026-09-08, the company announced an agreement to acquire Consolidated Precision Products (CPP), a manufacturer of engineered castings, for $11.75 billion to expand capacity. | -3.5% $336.61 -> $324.93 |
2026-07-17 | Q2 Earnings and Guidance Raise Details: On 2026-07-17, a press report noted robust Q2 results with revenue up 24% and free cash flow up 43%, prompting a guidance raise across all key metrics. | -1.3% $345.21 -> $340.78 |
2026-06-25 | Quarterly Dividend Authorized Details: On 2026-06-25, the Board of Directors declared a $0.47 per share quarterly dividend on common stock. | +0.9% $364.87 -> $367.98 |
2026-05-19 | Defense Contract Awarded Details: On 2026-05-19, the company was awarded a U.S. Air Force contract to complete the preliminary design review for its new GE426 engine for the Autonomous Collaborative Platform effort. | +5.0% $285.20 -> $299.34 |
2026-04-22 | Q1 Earnings and Stock Plunge Details: On 2026-04-22, a press report noted that despite strong Q1 results with revenue up 24.7%, shares fell on cautious forward guidance. The stock had a -9.0% two-day reaction. | -1.5% $285.94 -> $281.56 |
Risk Management
Position Sizing
4% - 6%
NORMAL POSITION
Sizing is volatility-based: GE trades at roughly 27% annualized realized (three-month) volatility versus about 11% for the S&P 500 (2.5x the market). A 4% - 6% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
RTX - RTX
Diversified Aerospace PeerRTX offers greater scale with revenue 1.8 times that of GE and a different engine platform (the GTF) with its own large backlog of over 8,000 engines.
Core Thesis: An investment in a scaled aerospace and defense leader with a strong backlog in both its commercial and defense businesses.
HON - Honeywell International
Higher Margin IndustrialHoneywell provides exposure to aerospace alongside other industrial end-markets and has demonstrated superior profitability, with a trailing-twelve-month operating margin of 19.7% versus GE's 18.2%.
Core Thesis: An investment in a high-quality, multi-industrial company with strong margins and significant aerospace exposure.
How Is The Market Pricing GE?
A razor/razorblade model for the skies, where a massive and growing installed base of engines generates decades of predictable, high-margin service revenue.
GE Aerospace's core value lies in its 80,000-strong installed engine base, which acts as an annuity, generating recurring, high-margin aftermarket revenue that represents ~70% of the business. The company is in a strong demand environment for both new engines and services, driven by global air travel and defense modernization. Its primary challenge and opportunity is executing on its massive backlog by navigating a supply-constrained environment.
What will confirm the thesis
Sustained growth in air travel departures, continued strong services order growth, and evidence of easing supply chain constraints allowing for higher engine delivery rates.
What will damage the thesis
A sharp, prolonged downturn in global air travel leading to widespread aircraft retirements, or the emergence of a new engine technology that drastically reduces service requirements.
Noise: Real but irrelevant to thesis
Short-term fluctuations in quarterly engine delivery numbers, which can be lumpy, or minor shifts in jet fuel prices.
Repricing Catalyst
The company's ability to execute on its record backlog and convert it into revenue and cash flow, demonstrated by its recent decision to raise full-year 2026 guidance for revenue, profit, and free cash flow.
What GE Makes & Who Pays
TTM figures based on fiscal year 2025 filings (the latest reported segment data)
Commercial Engines & Services (CES)
$33.3B TTM (73% of Total)What It Is
This segment sells jet engines for commercial airframes, business aviation, and aeroderivative applications. It also provides aftermarket services, including maintenance, repair, and overhaul (MRO) and spare parts sales, to airframers, airlines, and third-party MRO shops.
Who Pays & How
Airlines and airframers like Boeing and Airbus pay for engines to power new aircraft and for long-term service agreements to maintain their fleets. They choose GE for its product performance, reliability, and extensive service network for major engine platforms like the LEAP, GEnx, and CFM56.
Engines are sold as equipment. Services, which make up 75% of this segment's revenue, are offered under long-term service agreements, spare parts agreements, or time and material contracts.
Competition
Other global engine manufacturers and third-party MRO shops are the primary competitors.
Competitors may offer substantial discounts, financial incentives, and performance guarantees to secure an installed base for future aftermarket sales.
The segment's moat is its massive installed base, particularly the CFM56 and the growing LEAP fleet, which creates a long-tail, high-margin services business. On some aircraft, its engines are the sole source.
Defense & Propulsion Technologies (DPT)
$10.6B TTM (23% of Total)What It Is
This segment provides defense engines, avionics, power systems, and aircraft components for governments, militaries, and commercial airframers. Products include engines for fighters, bombers, helicopters, and marine applications, as well as components like transmissions, turbines, and propeller systems.
Who Pays & How
Governments and their prime contractors, such as the U.S. Department of War, pay for propulsion systems and services to modernize and maintain their military forces. They choose GE for its long-standing relationships, product performance, and innovation in advanced military technologies.
Revenue is derived from government contracts for equipment and services (MRO and spare parts).
Competition
A range of U.S. and non-U.S. companies or groups compete for government contract and subcontract awards.
The company's moat is its long-standing relationships with government customers, its established position on key military platforms (F-16, F-15, Black Hawk), and its investment in advanced and classified products like adaptive cycle combat engines.
GE Evolution: Price Return by Era
Through 2021 · Diversified Industrial Conglomerate
+13%
General Electric operated as a large conglomerate with major segments in Aerospace, Power, and Renewable Energy. In 2024, Aerospace constituted less than 70% of total revenue from these segments.
2023-2024 · Transformation and Spin-offs
+215%
The company executed a strategic transformation by spinning off its GE HealthCare business in 2023 and its GE Vernova (Power and Renewable Energy) business in 2024, as noted in company filings.
2025-Present · Pure-Play Aerospace Leader
+73%
Following the spin-offs, the company emerged as GE Aerospace, a focused global leader in aircraft propulsion and services. The business is now structured into two segments: Commercial Engines & Services and Defense & Propulsion Technologies, with a clear strategy centered on its large installed base and aftermarket services.
Market Appears To Be Acting Against Core Thesis
Price structure is in a downtrend. Multiple SMA levels broken and declining. Thesis requires reclaiming 200D before any bull case is credible. Relative to SPY: Lagging the market on the 63D window, but 'relative strength' is beginning to stabilize; watch for inflection. Volume and momentum show mild distribution. The selling pressure is present but not overwhelming. Earnings history is a strong counter-signal. The market has consistently rejected the narrative. This is not noise, but institutional disagreement.
① Structure
-4
Structural pillar score (-4 to +4). Driven by trend regime, SMA cross events, proximity to 52W high, and relative strength vs SPY.
② Volume / Momentum
-1
Volume/Momentum pillar score (-4 to +4). Driven by institutional footprint score, OBV divergence, and momentum character.
③ Catalyst
-3
Catalyst pillar score (-4 to +4). Driven by earnings day reaction, 20D post-earnings drift, and post-earnings volume character.
Combined Score
-8 / 12
1
Price Structure & Trend
Downtrend · Death Cross
▾
2
Momentum
Mixed
▾
3
Relative Strength vs. SPY
Strong Underperformance
▾
4
Institutional Footprint & Volume
Mild Distribution
▾
5
Volatility
Normal
▾
6
Key Price Levels
Range · Vol Rising
▾
7
Earnings Reaction History
Consistent Pressure
▾
8
How the Verdict Is Derived
Three Pillars
▾
GE Aerospace — Investor Video Playlist
Products & Services
Witness the Future of Flight at Farnborough International Airshow 2026
Investor / Analyst
GE Aerospace to invest another $1B in U.S. manufacturing in 2026, hire 5,000
Leadership
GE Aerospace CEO Larry Culp on forecast: Revenues will be up double digits
Products & Services
Open Fan: Advancing safety, durability, and efficiency
Leadership
GE Aerospace is building a larger skilled workforce!
Products & Services
Introducing state-of-the-art maintenance in Poland
Products & Services
Introducing GenAI Assistant
Products & Services
Mohamed Ali on RISE and Inventing the Future of Flight
Industry Resources
| Industrials Resources |
| IndustryWeek |
| Manufacturing.net |
| Aviation Week |
| Aerospace & Defense Resources |
| Defense News |
| FlightGlobal |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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Core Cache Last Updated: 10/27/2026