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With a market capitalization of approximately $391.5 billion, GE Aerospace (GE) is a leading aerospace company that designs, manufactures, and services jet engines, aircraft systems, and propulsion technologies for commercial, military, business, and general aviation. The Evendale, Ohio-based company also provides maintenance, repair, digital solutions, and power systems, supporting airlines, defense customers, and aircraft manufacturers worldwide.
Shares of this leading aerospace company have outperformed the broader market over the past year. GE has gained 36.6% over this period, while the broader S&P 500 Index ($SPX) has rallied nearly 22.2%. The outperformance has continued in 2026, with the stock up 22.5%, compared with the index's 13% gain over the same period.
Narrowing the comparison, GE has also outperformed the iShares U.S. Aerospace & Defense ETF (ITA), which has gained 22.7% over the past year and 16.8% on a year-to-date basis.
On July 16, GE Aerospace reported strong Q2 FY2026 results, with adjusted revenue rising 24.5% year over year to $12.63 billion, driven by robust commercial services demand. Adjusted EPS increased 21.7% to $2.02, while free cash flow jumped 42.8% to $3.03 billion. The company also raised its full-year 2026 guidance for revenue, operating profit, adjusted EPS, and free cash flow.
Despite the upbeat results and higher outlook, the stock fell more than 4% as investors focused on the modest size of the EPS guidance increase, with TD Cowen noting the raise "may not be good enough" to justify elevated expectations.
For the current fiscal year, ending in December 2026, analysts expect GE’s EPS to increase 24.2% to $7.91 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 22 analysts covering GE stock, the consensus is a "Strong Buy." That rating is based on 17 "Strong Buys," two "Moderate Buys," two "Holds," and one "Strong Sell."
This configuration is more bullish than it was three months ago, when the stock had 16 "Strong Buy" recommendations.
On July 27, Scott Deuschle of Deutsche Bank reiterated a "Buy" rating on GE Aerospace and raised his price target to $450 from $387, reflecting increased confidence in the company's outlook.
Based on analysts' estimates, the mean price target of $396.45 implies 5.1% upside from GE's current share price. The Street high target of $455 points to upside potential of 20.6%.
