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GE Aerospace (GE) stock analysis

GE Aerospace bounces 3.20% after a post-earnings slide, still 23.45% below its 52-week high

GE Aerospace closed at 297.66 on Oct 27, 2026, up 3.20% on the day but down 15.11% over three months despite a 11.94% EPS beat on Oct 20. Fundamentals are strong (revenue growth of 19.52%, ROIC of 28.45%), while the forward P/E of 31.98 sits well above the industry median of 23.05. A death cross formed on Oct 26, 2026.

  • Price: 297.66
  • Market Cap (USD): $308.08B
  • P/E: 33.85×
  • Fwd P/E: 31.98×
  • Div Yield: 0.59%
  • 1Y Return: -2.04%
  • Next Earnings: Jan 21, 2027
  • Mean Target: 390.00
  • Rating: Strong Buy

Bull case

  • Revenue grew 19.52% year over year and free cash flow grew 24.43%, with TTM free cash flow of $8.02B at a 15.25% margin.
  • The company has beaten EPS estimates 23 times in a row; the Oct 20, 2026 report beat by 11.94% on EPS and 9.63% on revenue.
  • Analysts' mean price target is 390.00 versus a price of 297.66, and the Oct 28, 2026 tally shows 24 Buy, 11 Hold and 1 Sell ratings.

Bear case

  • The forward P/E of 31.98 is in the 89th percentile of US Industrials, versus a sector median of 21.40, leaving little room for disappointment.
  • The stock fell after each of the last four earnings reports (-4.95% on Oct 20, 2026 and -9.00% on Apr 21, 2026), despite beats every time.
  • Price is 7.84% below the 200-day average of 322.99 and 7.13% below the 50-day average of 320.51, and the 50-day average crossed below the 200-day on Oct 26, 2026.

What to watch

  • Next earnings on Jan 21, 2027 (86 days away, confirmed); consensus EPS is 2.01.
  • A reclaim of the 20-day average at 304.44 and then the 50-day average at 320.51.
  • The 20-day low of 278.37 and the 52-week low of 268.91 as downside reference levels.
  • The 20-day high of 321.17 and 52-week high of 388.84 as upside reference levels.

General

GE Aerospace makes jet and turboprop engines and systems for commercial, military, business and general aviation. Operations are growing quickly and analysts are positive, but the shares have fallen for three months and trade at a premium to peers.

Business and trend

The company reports two segments: Commercial Engines & Services (72.65% of fiscal 2025 revenue at $33.31B) and Defense & Propulsion Technologies (23.02%). TTM revenue is $52.58B, up 19.52% year over year, and the latest quarter's revenue rose 15.52%.

Valuation in context

The forward P/E is 31.98 on next year's consensus EPS basis, against an industry median of 23.05 and a sector median of 21.40. EV to EBITDA is 24.80, and the free cash flow yield is 2.60%, in the 26th percentile of the sector.

What the market signals

Analysts' mean target is 390.00, implying 31.02% upside. Several firms trimmed targets after the Oct 20 report, for example Jefferies to 425 from 435 on Oct 25 and RBC Capital to 375 from 400 on Oct 21. The stock's 3-month return is -15.11%.

Main risks

The premium valuation, repeated negative reactions to earnings beats, a 1-year maximum drawdown of -25.07% and a weakening trend are the main concerns. Operating margin is down 2.37% from a year earlier.

Long-term investor

The business shows durable growth, high returns on capital and strong cash generation, with shares being retired. The offset is a rich valuation, with a PEG of 2.24 and a forward P/E near the top of its sector.

Growth and margins

Fiscal 2025 revenue was $45.85B versus $38.70B in 2024, and quarterly revenue has risen from $10.81B in Q4 FY2024 to $14.12B in Q3 FY2026. Operating margin is 19.24% but is down 2.37% year over year. Consensus EPS growth for next year is 14.30%.

Returns and balance sheet

ROIC is 28.45% (89th percentile, sector median 12.73%) and ROE is 50.10%. Net debt is $10.56B, or 0.82 times EBITDA, with interest coverage of 10.92. The current ratio is 0.98.

Capital returns

In fiscal 2025 the company repurchased $7.55B of stock and paid $1.45B in dividends. Shares outstanding fell 2.44% over a year. The yield is 0.59%, a 20.45% payout ratio, and the quarterly dividend was raised to 0.47 from 0.36.

Valuation and ownership

Forward P/E of 31.98 and EV to EBITDA of 24.80 are both well above sector medians. Institutions hold 80.40%, up 1.84% over three months. Insiders made two sales and no buys in 90 days, a net -3.8M.

Swing trader

The trend is down: price is below the 20-, 50- and 200-day averages, and a death cross formed on Oct 26, 2026. The Oct 27 bounce on above-average volume offers a short-term counterpoint, but momentum is still negative.

Trend and momentum

Price of 297.66 is 2.23% below the 20-day average (304.44), 7.13% below the 50-day (320.51) and 7.84% below the 200-day (322.99). RSI is 40.69, MACD is -7.78 versus a signal of -7.05, and ADX is 26.15, indicating a moderately firm trend. The 2-day RSI is 78.52 after the bounce.

Recent sessions and levels

The stock fell from 313.83 on Oct 16 to a low of 278.37 on Oct 23, then closed at 288.43 and 297.66. Oct 27 volume was 6.9M, 1.39 times normal. Nearby levels: 20-day low 278.37, 20-day high 321.17, 52-week low 268.91.

Risk and flows

ATR is 9.04, or 3.04% of price. Relative strength rating is 41, in the 33rd percentile. Short interest was 11.5M shares, 1.11% of float, on Oct 15, below the 15.8M on Sep 15. Analysts reiterated ratings after earnings with no upgrades or downgrades in 30 days.

Calendar

The next earnings date is Jan 21, 2027, 86 days away, outside most swing windows. The last ex-dividend date was Oct 5, 2026.

Options

Implied volatility is moderate and low relative to its own range, while still above recent realized volatility. Liquidity is strong and option flow leans toward calls.

Volatility level

The 30-day implied volatility is 31.77%, with a 52-week rank of 23 and percentile of 34 (range 26.24% to 50.20%). It fell 6.2 points over 20 days. Rank is in the 11th percentile of the sector.

Implied versus realized

The 30-day implied volatility is 7.6 points above 30-day historical volatility of 24.21%, a ratio of 1.31 times, so premium is rich relative to realized movement. The term structure is in contango (+1.2 points from 30 to 90 days) and 25-delta skew is +0.5 points.

Expected moves and earnings

The implied 30-day move is 9.11% (27.11) and the 7-day move is 4.40%. Earnings on Jan 21, 2027 fall outside the Nov 27 expiry. Past earnings moves averaged 5.07% over 8 quarters, with a maximum of 9.00%; the last implied move was 6.73% versus an actual -4.95%.

Premium yields and liquidity

For the Nov 27, 2026 expiry (31 days), the 30-delta put at 285.00 pays 5.42, a 22.39% annualized cash-secured yield. The 30-delta call at 315.00 pays 5.15, a 20.37% covered-call yield. The liquidity score is 89, and the put/call volume ratio is 0.43.

Analysis written October 28, 2026 from Qanvo data as of October 27, 2026. AI-generated, for information only; not investment advice.