GE Aerospace
GE
$348.83
+0.90%
GE Aerospace is the global leader in designing, manufacturing, and servicing commercial aircraft turbine engines, operating primarily in the Aerospace & Defense industry. As the remaining core of the historic General Electric conglomerate, it holds a dominant market position with an installed base of nearly 80,000 engines and generates most of its profits from recurring service revenue. The current investor narrative centers on the company's successful transformation into a pure-play aerospace powerhouse, with strong revenue growth and margin expansion driving attention, while geopolitical risks from the Iran conflict and rising fuel costs create debate about the sustainability of its services revenue.…
GE
GE Aerospace
$348.83
Related headlines
GE 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on GE Aerospace's 12-month outlook, with a consensus price target around $384.24 and implied upside of +10.2% versus the current price.
Average Target
$384.24
0 analysts
Implied Upside
+10.2%
vs. current price
Analyst Count
—
covering this stock
Price Range
$270 - $455
Analyst target range
GE Aerospace is covered by 21 analysts, with a consensus recommendation of 'strong_buy' (mean rating of 1.5 on a 1-5 scale). The average target price is $375.90, implying approximately 4.3% upside from the current price of $360.35. The distribution shows a bullish consensus, with no sell ratings and a majority of buy or outperform ratings. The target price range spans from a low of $270.00 to a high of $455.00, indicating significant uncertainty about the stock's future. The high target of $455.00 assumes continued strong growth, margin expansion, and potential catalysts like new engine programs or further share buybacks, while the low target of $270.00 prices in risks from geopolitical tensions, rising fuel costs, or a downturn in air travel. Recent institutional ratings from RBC Capital, TD Cowen, Susquehanna, Jefferies, Citigroup, UBS, and Morgan Stanley have all been positive (Buy/Outperform/Overweight), with no downgrades in the past three months, reinforcing the bullish sentiment. The wide spread between the low and high targets (68.5% difference) suggests high uncertainty, but the consensus remains firmly bullish.
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Bulls vs Bears: GE Investment Factors
GE Aerospace presents a compelling growth story with accelerating revenue, expanding margins, and dominant market position, supported by a bullish analyst consensus. However, the elevated valuation (trailing P/E 37.75x vs. sector 20-25x) and macro risks from geopolitical tensions and fuel costs create a balanced risk/reward. The single most important tension is whether the company can sustain its 24.74% revenue growth and margin expansion in the face of potential airline stress from high fuel prices. Currently, the bull case has stronger evidence given the operational momentum and strong free cash flow, but the valuation leaves limited upside to the average analyst target of $375.90 (4.3% upside).
Bullish
- Accelerating Revenue Growth: Q1 2026 revenue grew 24.74% YoY to $12.39B, accelerating from 17.6% in Q4 2025, driven by strong service revenue ($6.35B, 51.2% of total) and the large installed base of nearly 80,000 engines.
- Expanding Operating Margins: Operating margin improved to 23.33% in Q1 2026 from 20.16% a year ago, demonstrating operational leverage as revenue scales. Net margin was 15.36%, up from 19.91% in Q1 2025, though slightly lower due to mix.
- Strong Free Cash Flow Generation: Trailing twelve-month free cash flow reached $7.46B, providing ample cash for reinvestment and shareholder returns. Q1 2026 FCF was $1.49B, supporting a healthy balance sheet with a current ratio of 1.04.
- Dominant Market Position: With an installed base of nearly 80,000 engines and a leading position in commercial aerospace, GE benefits from high barriers to entry and recurring service revenue that provides visibility and stability.
Bearish
- Elevated Valuation Multiple: Trailing P/E of 37.75x and forward P/E of 41.26x are well above the Aerospace & Defense sector average of 20-25x, suggesting the market has priced in optimistic growth expectations that leave little room for error.
- Geopolitical and Macro Risks: The Iran conflict and rising fuel costs (Brent crude spiked to $119/barrel) threaten airline profitability and could reduce flight hours, directly impacting GE's high-margin services revenue.
- High Beta and Volatility: With a beta of 1.348, GE is 35% more volatile than the market, amplifying downside during selloffs. The stock experienced a max drawdown of -20.97% over the past year.
- Moderate Debt Levels: Debt-to-equity ratio of 1.10 indicates moderate leverage. While manageable given strong cash flow, it adds financial risk in a rising interest rate environment.
GE Technical Analysis
GE Aerospace is in a sustained uptrend, with the stock up 36.15% over the past year, significantly outperforming the S&P 500's 20.92% gain. The current price of $360.35 sits at 94.1% of its 52-week range ($254.66 low to $382.97 high), indicating the stock is trading near its highs and reflecting strong momentum, though it also suggests the stock may be overextended in the near term. Short-term momentum is accelerating, with a 1-month gain of 5.29% and a 3-month gain of 20.81%, both outpacing the S&P 500's respective returns of 0.6% and 6.29%. The 1-month relative strength of 4.69% confirms the stock is gaining on the market, and the 3-month relative strength of 14.52% shows this outperformance is broadening, suggesting a strong trend rather than a temporary pullback. The 52-week high of $382.97 serves as key resistance, while the 52-week low of $254.66 provides support. A breakout above $382.97 would signal a continuation of the uptrend, while a breakdown below $254.66 would indicate a potential trend reversal. With a beta of 1.348, GE is about 35% more volatile than the market, meaning it amplifies market moves and requires careful position sizing for risk management.
Beta
—
—
Max Drawdown
-21.0%
Largest decline past year
52-Week Range
$255-$383
Price range past year
Annual Return
+34.0%
Cumulative gain past year
| Period | GE Return | S&P 500 |
|---|---|---|
| 1m | -2.3% | +0.3% |
| 3m | +14.7% | +4.7% |
| 6m | +7.3% | +7.5% |
| 1y | +34.0% | +18.4% |
| ytd | +8.8% | +9.0% |
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GE Fundamental Analysis
Revenue growth is accelerating, with Q1 2026 revenue of $12.39 billion up 24.74% year-over-year, compared to Q4 2025's $12.72 billion (up 17.6% YoY) and Q1 2025's $9.93 billion. The revenue trajectory is robust, driven by strong service revenue of $6.35 billion (51.2% of total) and product revenue of $2.65 billion, with the CFM joint venture and aftermarket services fueling growth. This accelerating growth supports the investment case as the company benefits from increasing air travel and its large installed base. Profitability is solid and improving, with Q1 2026 net income of $1.90 billion and a net margin of 15.36%, up from 19.91% in Q1 2025. Gross margin was 36.07% in Q1 2026, slightly below the 39.65% in Q1 2025 but still healthy, while operating margin expanded to 23.33% from 20.16% a year ago, indicating operational leverage. The company is consistently profitable, with EPS of $1.82 in Q1 2026 versus $1.85 in Q1 2025, and the trajectory toward higher margins is positive. The balance sheet is healthy, with a debt-to-equity ratio of 1.10 and a current ratio of 1.04, indicating adequate liquidity. Free cash flow was $1.49 billion in Q1 2026, and trailing twelve-month free cash flow reached $7.46 billion, providing ample cash for internal growth and shareholder returns. The ROE of 46.6% is exceptionally high, reflecting strong profitability and efficient use of equity, while the debt-to-equity ratio suggests moderate leverage that is manageable given the company's cash generation.
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?
Since net income is positive, the primary valuation metric is the P/E ratio. The trailing P/E is 37.75x, while the forward P/E is 41.26x, implying the market expects earnings to grow modestly in the coming year. The gap between trailing and forward P/E suggests that while earnings are expected to increase, the stock price has already priced in some of that growth, leading to a higher forward multiple. Compared to the industry, GE's trailing P/E of 37.75x is at a premium to the sector average (industry average not provided, but typically Aerospace & Defense trades around 20-25x). The PS ratio of 7.17x also indicates a premium valuation, reflecting the market's confidence in GE's growth and profitability. Historically, GE's trailing P/E has ranged from a low of around 2.8x in Q1 2023 to a high of over 120x in Q3 2022, so the current 37.75x is in the middle of its historical range. This suggests the stock is not at extreme valuation levels, but it is above the median, indicating that the market is pricing in optimistic expectations for continued growth and margin expansion.
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 & Operational Risks: GE's debt-to-equity ratio of 1.10 indicates moderate leverage, but with trailing twelve-month free cash flow of $7.46B, coverage is adequate. However, the forward P/E of 41.26x leaves the stock vulnerable to earnings disappointments; a 10% earnings miss could compress the multiple significantly. Revenue concentration in services (51.2% of total) means any disruption to flight hours—from fuel costs or geopolitical events—directly impacts profitability. The Q1 2026 net margin of 15.36% is healthy but down from 19.91% a year ago, suggesting some margin pressure from product mix.
Market & Competitive Risks: The stock's beta of 1.348 makes it highly sensitive to macro shocks, as seen during the March 2026 selloff when Brent crude spiked to $119/barrel. The Iran conflict and rising fuel costs could reduce airline profitability and flight hours, directly threatening GE's services revenue. Competitive risks include Honeywell's aerospace spinoff, which could create a more focused rival, and potential disruption from new engine technologies. The stock's 36.15% one-year gain already prices in significant optimism, leaving limited upside to the average analyst target of $375.90.
Worst-Case Scenario: A prolonged Iran conflict driving oil above $120/barrel could trigger airline bankruptcies and a sharp reduction in flight hours, slashing GE's services revenue. Combined with a broader market downturn, the stock could fall to its 52-week low of $254.66, representing a -29.3% decline from the current price of $360.35. This scenario aligns with the analyst low target of $270.00 and would imply a forward P/E of roughly 22x, more in line with historical sector averages.
