Key Stats for GE Aerospace Stock
- Price change for GE stock: -7.4%
- $GE Share Price as of Jan. 22: $295
- 52-Week High: $333
- $GE Stock Price Target: $355
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What Happened?
GE Aerospace (GE) shares slipped 7.4% on Thursday despite reporting fourth-quarter earnings that beat Wall Street estimates. The company posted earnings per share of $1.57, topping the expected $1.43, while revenue came in at $11.9 billion, above the $11.2 billion analysts anticipated.
So why did GE stock fall after another solid quarter? The issue comes down to expectations.
- While GE beat estimates by 9%, that’s well below the company’s recent track record.
- Over the past 12 quarters, GE stock has beaten earnings estimates by an average of 28%.
- Thursday’s smaller beat disappointed investors who have come to expect bigger surprises from the aerospace giant.
The market’s reaction also reflects concerns about margin pressure in GE’s core commercial engine business.
Operating margins in that segment dropped 4.2 percentage points to 24%, pressured by higher research and development spending and increased production of new engines, such as the GE9X that powers Boeing’s 777X.
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What the Market Is Telling Us About GE Stock
Despite the pullback, GE stock remains up 69% over the past year and has now beaten earnings estimates for 13 consecutive quarters.
The company’s 2026 guidance also came in ahead of analyst expectations, with management forecasting low-double-digit sales growth and operating profit between $9.85 billion and $10.25 billion.
However, valuation is becoming a concern.
- GE stock now trades at roughly 44 times forward earnings, up from 36 times a year ago.
- That’s a premium multiple, even for a company with GE’s consistent performance.
- Fourth-quarter orders jumped 74% year-over-year to $27 billion, signaling strong demand ahead.
- But with GE stock trading near all-time highs, investors appear to be taking profits after the modest earnings beat.
The commercial aviation backdrop remains solid, with strong aftermarket demand and aircraft deliveries expected to rise from 1,400 in 2025 to about 1,600 in 2026.
This should support GE’s business, though near-term margin pressures may limit upside for GE stock until the valuation becomes more attractive.
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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!
