GE Aerospace (NYSE:GE) Releases Quarterly Earnings Results, Beats Estimates By $0.24 EPS

GE Aerospace (NYSE:GE) posted its earnings results on Tuesday. The company reported $2.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.01 by $0.24, FiscalAI reports. GE Aerospace had a return on equity of 44.43% and a net margin of 17.31%. The business had revenue of $13.29 billion during the quarter, compared to analysts’ expectations of $12.88 billion. During the same period in the prior year, the business earned $1.66 EPS. GE Aerospace’s revenue for the quarter was up 24.7% compared to the same quarter last year.

Here are the key takeaways from GE Aerospace’s conference call:

• Positive Sentiment: GE Aerospace reported strong third-quarter results, with revenue up 18%, operating profit up 30%, margins expanding 220 basis points to 22.5%, EPS up 36%, and free cash flow exceeding $2 billion.
• Positive Sentiment: Robust demand and backlog visibility led management to raise 2026 guidance across revenue, operating profit, EPS, and free cash flow; the company now expects low-double-digit commercial services growth in 2027.
• Positive Sentiment: Commercial engine services remained a major growth driver, with orders up 23% in the quarter and 30% year to date. Improved material availability, rising LEAP utilization, record shop output, and shorter turnaround times are supporting revenue growth and reducing LEAP-related aircraft groundings to nearly zero.
• Neutral Sentiment: GE Aerospace is investing to address long-term capacity and technology needs, including its planned acquisition of Consolidated Precision Products for mission-critical castings and more than $3 billion of annual R&D spending.
• Negative Sentiment: Supply-chain constraints continue to limit execution, with more than 95% of spare-parts revenue already in backlog and spare-parts delinquency increasing sequentially. The GE9X program is also expected to create an additional approximately $300 million year-over-year profit headwind in 2027, despite improving production costs.

GE Aerospace Trading Down 1.4%

GE stock opened at $295.62 on Thursday. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.67 and a current ratio of 0.98. The company’s 50-day simple moving average is $325.95 and its 200 day simple moving average is $328.95. GE Aerospace has a 52 week low of $268.91 and a 52 week high of $388.84. The company has a market capitalization of $306.73 billion, a PE ratio of 34.10, a price-to-earnings-growth ratio of 2.16 and a beta of 1.38.

GE Aerospace Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 26th. Shareholders of record on Monday, October 5th will be issued a $0.47 dividend. This represents a $1.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Monday, October 5th. GE Aerospace’s dividend payout ratio is currently 22.14%.

Insider Buying and Selling at GE Aerospace

In other GE Aerospace news, SVP Mohamed Ali sold 8,096 shares of GE Aerospace stock in a transaction on Friday, July 24th. The stock was sold at an average price of $353.71, for a total value of $2,863,636.16. Following the completion of the transaction, the senior vice president directly owned 20,666 shares of the company’s stock, valued at $7,309,770.86. The trade was a 28.15% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.19% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on GE shares. Sanford C. Bernstein reiterated an “outperform” rating on shares of GE Aerospace in a research note on Friday, October 16th. UBS Group restated a “buy” rating and issued a $380.00 price objective (up from $377.00) on shares of GE Aerospace in a report on Wednesday. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $378.00 target price on shares of GE Aerospace in a research report on Wednesday. Wells Fargo & Company dropped their target price on GE Aerospace from $390.00 to $380.00 and set an “overweight” rating on the stock in a report on Wednesday, September 30th. Finally, Morgan Stanley reissued an “overweight” rating and set a $375.00 price target (down from $400.00) on shares of GE Aerospace in a research report on Wednesday. Seventeen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $375.62.

GE Aerospace News Summary

Here are the key news stories impacting GE Aerospace this week:

• Positive Sentiment: GE Aerospace reported adjusted third-quarter EPS of $2.25, above the roughly $2.01 consensus estimate, while revenue reached approximately $13.29 billion. Orders jumped 49% to $19 billion, led by commercial engines and services. GE Aerospace Q3 Earnings Beat on Commercial Services Strength
• Positive Sentiment: Management raised fiscal 2026 adjusted EPS guidance to $8.00-$8.10 from $7.65-$7.85, above the $7.92 consensus, and increased its revenue, operating-profit and free-cash-flow outlook. GE Aerospace raises 2026 guidance as orders surge
• Positive Sentiment: Strong aftermarket demand remains the primary bullish driver. GE expects low-double-digit services growth in 2027, supported by aging aircraft, high spare-parts demand and a commercial-services backlog exceeding $170 billion. GE Aerospace Q3 Earnings Call Highlights Higher Services Outlook
• Positive Sentiment: Several analysts remain constructive: UBS raised its price target to $380, while JPMorgan, RBC and Susquehanna retained bullish ratings despite lowering their targets. Heavy call-option buying also signals continued speculative interest. GE Aerospace price target raised at UBS
• Neutral Sentiment: GE is using artificial intelligence to reduce technical-record processing time by about 25%, potentially improving engine turnaround times and fleet availability. GE Aerospace Turns To AI To Ease Engine Maintenance Bottlenecks
• Negative Sentiment: Investors are concerned that higher costs, declining near-term cash flow and the GE9X ramp could pressure margins before the program becomes profitable. Fuel-price increases may also force airlines to reduce capacity, although this could support longer use of existing aircraft.
• Negative Sentiment: BNP Paribas Exane cut its target to $280 and downgraded GE to underperform. Commentary also highlights that the shares have lagged the broader market despite strong operating results, suggesting valuation and elevated expectations remain obstacles. Analysts revise GE Aerospace forecasts after Q3 results

About GE Aerospace

GE Aerospace (NYSE: GE) is a global aerospace company that designs, develops, manufactures and services aircraft engines and related systems. Its products support commercial air transport, business and general aviation, military aircraft, and other defense applications. The company also provides engine components, avionics, mechanical systems, digital solutions and maintenance, repair and overhaul services.

GE Aerospace serves airlines, aircraft operators, leasing companies, airframers and government customers worldwide.