GE Aerospace Stock Surged 60%, Here’s Why
GE Aerospace (GE)’s stock soared 61%, fueled by a potent mix of booming revenue, rising profit margins, and soaring investor confidence. Behind the surge: a string of stellar earnings beats, raised guidance, and robust commercial demand that kept momentum blazing through 2025. Let’s explore what sparked this rally.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 12042024 | 12042025 | Change | |
|---|---|---|---|
| Stock Price ($) | 181.5 | 291.9 | 60.8% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 37,346.0 | 43,948.0 | 17.7% |
| Net Income Margin (%) | 16.7% | 18.3% | 9.7% |
| P/E Multiple | 31.8 | 38.3 | 20.6% |
| Shares Outstanding (Mil) | 1,093.0 | 1,058.0 | 3.2% |
| Cumulative Contribution | 60.6% |
So what is happening here? The stock surged 61%, driven by an 18% revenue boost, a 9.7% lift in net margin, and a 21% jump in the P/E multiple. Let’s dive into the events behind these shifts.
Here Is Why GE Aerospace Stock Moved
- Q4 2024 Strong Results: GE Aerospace beat Q4 2024 estimates for EPS & revenue, initiating strong 2025 guidance.
- Q1 2025 Earnings Beat: Exceeded Q1 2025 EPS & revenue estimates, driven by robust commercial services growth.
- Q2 2025 Guidance Hike: Significantly raised full-year 2025 outlook after beating Q2 EPS and revenue expectations.
- Q3 2025 Outperformance: Beat Q3 2025 forecasts for EPS & revenue, leading to another raised full-year guidance.
- Strong Commercial Demand: New engine orders & MRO investments reflected robust demand in the commercial aviation sector.
Our Current Assesment Of GE Stock
Opinion: We currently find GE stock relatively expensive. Why so? Have a look at the full story. Read Buy or Sell GE Stock to see what drives our current opinion.
Risk: To get a sense of risk with GE stock, check its dips in past market crises. It fell about 49% during the Dot-Com bubble, dropped 83% in the Global Financial Crisis, and slid 78% in the 2018 correction. Even the Covid pandemic caused a 58% pullback, while the recent inflation shock led to a 47% decline. These numbers show that no matter the positives, GE can still take heavy hits when markets turn. Quality is useful, but it doesn’t guarantee you won’t get bruised in major sell-offs.
GE stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.