Key Stats for GE Aerospace Stock
- Price change for GE Aerospace stock in last 6 months: 5%
- $GE Stock Price as of Oct. 20: $300
- 52-Week High: $389
- $GE Stock Price Target: $391
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What Happened?
GE Aerospace (GE) shares fell about 4% on Tuesday, even after a strong Q3.
- Adjusted earnings came in at $2.25 per share, well above the $2.02 Wall Street expected.
- The business is growing fast, and total revenue rose 18% and came in at $13.29 billion against expectations of $12.88 billion
- Operating profit jumped 30%, and margins hit 22.5%, up 220 basis points.
- Orders surged 49%, and free cash flow topped $2 billion.
Commercial engines and services led the way as revenue in the unit rose 21% to $10.34 billion, while spare parts revenue grew more than 20%.
The company also raised its 2026 earnings forecast for the second time this year. It now expects $8.00 to $8.10 per share, up from $7.65 to $7.85, above the $7.92 analysts expected.
So why did GE Aerospace stock drop? The new forecast points to a softer Q4.
It implies earnings of about $1.87 to $1.97 per share, below the $2.04 analysts expected. TD Cowen said that works out to about 6% below Wall Street estimates for earnings per share.
Costs are also on investors’ minds. GE expects an extra $300 million profit headwind in 2027, which comes from ramping up GE9X engines for Boeing’s delayed 777X.
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What the Market Is Telling Us About GE Aerospace Stock
Investors are looking past the big Q3 beat and focusing on what comes next. The weaker Q4 outlook and higher 2027 costs are weighing on GE Aerospace stock today.
Higher fuel prices are another worry. Airlines are cutting costs and capacity after the Iran war disrupted oil shipping routes, while fewer flights could eventually mean less demand for repairs and spare parts.
But the demand picture still looks solid for now. Airlines are holding on to their aircraft and engines waiting for repairs are up 20% since the start of the year.
GE also has a backlog of more than $170 billion and expects commercial services revenue to grow at a low-double-digit pace in 2027.
In short, the market sees the quarter as strong but the near-term path as bumpier.
Investors will watch whether fuel costs start to cut into flying and repair demand. For now, GE Aerospace stock is reacting to the outlook rather than the results.
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So what is GE Aerospace stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
