GE Aerospace
GE
$348.37
+1.08%
GE Aerospace is the global leader in designing, manufacturing, and servicing commercial and military aircraft turbine engines, operating in the Aerospace & Defense industry. With a massive installed base of nearly 80,000 engines, the company generates the majority of its profits from recurring service revenue, a durable and high-margin business model. As the remaining core of the former General Electric conglomerate, GE Aerospace has emerged as a pure-play aviation powerhouse, benefiting from strong air travel demand and defense spending. The current investor narrative centers on robust growth in services and aftermarket demand, but is tempered by macroeconomic risks such as rising fuel costs and geopolitical tensions, including the Iran conflict, which could impact airline profitability and engine utilization.…
GE
GE Aerospace
$348.37
Related headlines
Investment Opinion: Should I buy GE Today?
Rating: Buy. GE Aerospace is a high-quality growth company with accelerating revenue and strong margins, supported by a dominant market position. The analyst consensus is Buy with an average target of $404.90, implying 9.9% upside, and the high target of $455 suggests 23.5% potential. The thesis is anchored on durable services growth and operational excellence.
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GE 12-Month Price Forecast
The AI assessment is bullish, driven by strong fundamental performance and positive analyst sentiment. However, confidence is medium due to macro risks from fuel costs and geopolitical tensions. The stock's valuation is elevated, but growth justifies it. If growth continues and macro risks subside, the stock could outperform. Key factors to monitor are quarterly earnings and fuel price trends. An upgrade to high confidence would occur if revenue growth exceeds 25% and margins expand, while a downgrade would be triggered by a slowdown in services growth or a significant market correction.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on GE Aerospace's 12-month outlook, with a consensus price target around $404.90 and implied upside of +16.2% versus the current price.
Average Target
$404.90
0 analysts
Implied Upside
+16.2%
vs. current price
Analyst Count
—
covering this stock
Price Range
$347 - $455
Analyst target range
GE Aerospace is covered by 21 analysts, with a consensus recommendation of 'Buy' (based on the distribution of actions: 5 Buy, 1 Outperform, 1 Overweight, 1 Positive, and 1 Neutral, though the 'recommendation' field is 'none', the actions indicate a bullish tilt). The average target price is $404.90, implying an upside of approximately 9.9% from the current price of $368.38. The target range is $347.00 to $455.00, with the low target suggesting a downside of -5.8% and the high target implying an upside of 23.5%. The wide spread of $108 indicates significant uncertainty about the stock's future performance, likely due to macroeconomic risks and the cyclical nature of the aerospace industry.
Bulls vs Bears: GE Investment Factors
GE Aerospace presents a compelling growth story with accelerating revenue, robust margins, and a dominant market position. However, the elevated valuation and macro risks from fuel costs and geopolitical tensions create a balanced debate. Currently, the bull case has stronger evidence due to the company's fundamental strength and analyst support, but the key tension is whether growth can sustain the premium multiple. If services growth decelerates or fuel costs severely impact airlines, the stock could face multiple compression, making the bear case more relevant.
Bullish
- Revenue growth accelerating to 24.7% YoY: Q1 2026 revenue reached $12.39B, up 24.7% YoY, a significant acceleration from 11.0% growth in Q2 2025. This momentum is driven by strong services demand and commercial engine sales, indicating robust end-market health.
- High-margin services model with 80k installed base: With nearly 80,000 engines in service, recurring service revenue provides a durable, high-margin stream. Services revenue of $6.35B in Q1 2026 underscores the profitability of aftermarket operations, supporting long-term earnings stability.
- Strong profitability with 19.2% operating margin: Operating margin expanded to 19.1% in Q1 2026, up from 17.9% in Q2 2025, reflecting operational leverage and cost discipline. Net margin of 19.0% demonstrates efficient conversion of revenue to profit.
- Analyst consensus Buy with 9.9% upside: 21 analysts rate GE a Buy, with an average target of $404.90, implying 9.9% upside from $368.38. The high target of $455 suggests 23.5% potential, reflecting confidence in growth trajectory.
Bearish
- Elevated valuation with forward PE of 40.6x: Forward PE of 40.6x is higher than trailing PE of 37.7x, implying expected earnings decline. This premium valuation leaves little room for disappointment and could compress if growth slows.
- Macro risks from Iran conflict and fuel costs: Rising fuel costs due to the Iran conflict threaten airline profitability, potentially reducing engine utilization and aftermarket demand. News highlights this as a key risk to GE's services revenue.
- High debt-to-equity ratio of 1.10: Debt-to-equity of 1.10 indicates significant leverage, which could strain cash flows if interest rates remain high or earnings decline. Interest expense of $230M in Q1 2026 adds to fixed costs.
- Beta of 1.37 amplifies market volatility: With a beta of 1.37, GE is more volatile than the market, exposing investors to larger swings during downturns. This is particularly relevant given current geopolitical and economic uncertainties.
GE Technical Analysis
GE Aerospace is in a strong uptrend, with the stock up 36.6% over the past year, significantly outperforming the S&P 500's 20.4% gain. The current price of $368.38 sits near the upper end of its 52-week range, at approximately 94.7% of the high of $388.84, indicating strong momentum and investor confidence. This positioning near highs suggests the stock is in a bullish phase, though it also raises the risk of short-term overextension.
Beta
1.37
1.37x market volatility
Max Drawdown
-21.0%
Largest decline past year
52-Week Range
$266-$389
Price range past year
Annual Return
+29.6%
Cumulative gain past year
| Period | GE Return | S&P 500 |
|---|---|---|
| 1m | +2.1% | +2.5% |
| 3m | +15.0% | +2.7% |
| 6m | +1.5% | +11.1% |
| 1y | +29.6% | +20.5% |
| ytd | +8.6% | +12.3% |
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GE Fundamental Analysis
GE Aerospace's revenue growth is accelerating, with Q1 2026 revenue of $12.39 billion, up 24.7% year-over-year, compared to 11.0% growth in Q2 2025. The company has consistently grown revenue over the past five quarters, from $9.09 billion in Q2 2024 to $12.39 billion in Q1 2026, driven by strong services demand and commercial engine sales. This growth is broad-based, with services revenue of $6.35 billion and product revenue of $2.65 billion in the latest quarter, indicating a healthy mix of aftermarket and original equipment sales.
Quarterly Revenue
$12.4B
2026-03
Revenue YoY Growth
+24.7%
YoY Comparison
Gross Margin
36.1%
Latest Quarter
Free Cash Flow
$7.5B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is GE Overvalued?
Given GE Aerospace's positive net income, the PE ratio is the most appropriate valuation metric. The trailing PE is 37.7x, while the forward PE is 40.6x, indicating that the market expects earnings to grow slightly slower than the current level, which is unusual and may reflect near-term margin pressures or conservative estimates. The gap between trailing and forward PE suggests that the market is pricing in a modest earnings decline, which could be a red flag or an opportunity depending on the company's execution.
PE
37.7x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 3x~39x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
27.9x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include a high debt-to-equity ratio of 1.10, which increases vulnerability to interest rate hikes and economic downturns. Interest expense of $230M in Q1 2026 represents a fixed cost that could pressure earnings if revenue growth stalls. Additionally, the forward PE of 40.6x implies high expectations; any earnings miss could trigger a sharp re-rating. The company's reliance on continued growth to justify valuation is a key financial risk, as a slowdown in services demand would directly impact profitability.