GE Aerospace Sees Strong Stock Performance Amid Solid Earnings Growth

With a market cap of $228.7 billion, GE Aerospace (GE) specializes in designing and producing commercial and defense aircraft engines, along with integrated engine components and mechanical aircraft systems. The company is headquartered in Evendale, Ohio, and operates through segments including Commercial Engines and Services, as well as Defense and Propulsion Technologies.

Over the past year, GE shares have significantly outperformed the broader market. GE has seen a 27% increase during this period, while the S&P 500 Index ($SPX) has risen by only 9.2%. Year-to-date, GE shares are up 28.6%, contrasting with a 3.7% decline in the SPX.

Interestingly, GE Aerospace has also outperformed the iShares U.S. Aerospace & Defense ETF (ITA), which recorded a 21.9% increase in the same timeframe and a 12.5% return year-to-date.

On April 22, GE Aerospace’s stock rose by 6.1% following the release of its impressive Q1 2025 results. Driven by growth across all business segments, adjusted revenue surged 11.5% from the previous year to reach $9 billion. The company recorded a 12% increase in orders, totaling $12.3 billion. Adjusted EPS climbed 60.2% year-over-year to $1.49, surpassing consensus estimates by 18.3%.

The implementation of the FLIGHT DECK operating model also facilitated an 8% sequential increase in material inputs from priority suppliers. For fiscal 2025, GE projects adjusted EPS in the range of $5.10 to $5.45.

For the current fiscal year, ending in December 2025, analysts anticipate a 19.6% year-over-year increase in GE’s adjusted EPS to $5.50. The company’s earnings surprise history is strong, having exceeded consensus estimates in the last four quarters.

Among the 21 analysts covering GE, the consensus rating is a “Strong Buy,” reflecting 18 “Strong Buy” ratings, one “Moderate Buy,” and two “Holds.” This is an improvement compared to three months ago when there were 15 “Strong Buy” ratings.

On April 23, RBC Capital Markets maintained GE’s price target at $220 while keeping an “Outperform” rating. As of now, GE Aerospace is trading below the mean price target of $227.15, with the highest price target set at $261, suggesting a possible upside of 21.7% from current levels.

On the date of publication, Sohini Mondal did not hold any positions in the securities mentioned in this article. All information and data are intended solely for informational purposes. For further details, please view the Barchart Disclosure Policy here.

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