GE AI Stock Analysis – Buy, Hold, or Avoid?
GE Aerospace (GE)
GE Aerospace offers robust long-term growth prospects and strong fundamentals, but its current valuation is elevated and technical signals are neutral to bearish in the short term. While sentiment and analyst targets are positive, near-term risks and a topping technical pattern suggest patience is warranted. The stock is best held for now, with better entry points likely on pullbacks or after technical confirmation.
Fundamentals
GE Aerospace demonstrates consistently strong fundamentals with robust revenue growth, expanding earnings, and sustained profitability. The company has outperformed analyst expectations, reflecting operational execution and supportive industry dynamics, but its current valuation leaves less room for upside unless growth accelerates further.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
24.74% YoY
Q1 2026
Net Income
-2.12% YoY
Q1 2026
Net Margin
Q1 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q1 2026
Net Income Growth YoY
Latest Quarter: Q1 2026
Revenue Per Share Growth YoY
Latest Quarter: Q1 2026
EPS Growth YoY
Latest Quarter: Q1 2026
Book Value Per Share Growth YoY
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 12.4B | 12.7B | 12.2B | 11.0B | 9.9B | 10.8B | 9.8B | 9.1B |
| Revenue Growth YoY | +24.74% | +17.63% | +24.17% | +21.21% | +10.93% | -44.34% | +5.81% | +3.87% |
| Net Income | 1.9B | 2.5B | 2.2B | 2.0B | 2.0B | 1.9B | 1.9B | 1.3B |
| Net Income Growth YoY | -2.12% | +33.75% | +16.47% | +60.19% | +28.53% | +19.28% | +426.14% | +3736.36% |
| EPS | $1.82 | $2.38 | $2.04 | $1.91 | $1.85 | $1.76 | $1.71 | $1.16 |
| EPS Growth YoY | -1.62% | +35.23% | +19.30% | +64.66% | +31.21% | +20.55% | +612.50% | +4460.90% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 31.04% | 34.24% | 36.49% | 37.89% | 39.65% | 37.45% | 36.74% | 38.69% |
| Operating Margin | 13.70% | 18.55% | 22.88% | 19.04% | 20.16% | 24.10% | 12.61% | 17.89% |
| Net Margin | 15.62% | 19.97% | 17.65% | 18.40% | 19.91% | 17.57% | 18.82% | 13.92% |
| Return on Equity (ROE) | 10.72% | 13.60% | 11.47% | 10.60% | 10.27% | 9.82% | 9.81% | 6.81% |
| Return on Assets (ROA) | 1.68% | 2.17% | 1.88% | 1.81% | 1.78% | 1.68% | 1.63% | 1.15% |
Technical Analysis
GE is currently in a topping phase with price showing bearish tendencies below key moving averages despite a golden cross indicating a longer-term positive bias. Momentum is neutral with RSI near 51 and ADX signaling a moderate but not strong trend, suggesting cautious trading conditions ahead. Increased volatility and signals of distribution warrant close watch for potential breakdowns below major supports.
No extreme reading
Price in downtrend
Trend developing
50 below 200 - bearish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
GE Aerospace demonstrates consistently strong fundamentals with robust revenue growth, expanding earnings, and sustained profitability. The company has outperformed analyst expectations, reflecting operational execution and supportive industry dynamics, but its current valuation leaves less room for upside unless growth accelerates further.
Latest Earnings
Q1 2026 Earnings (Mar 31, 2026)
Earnings Per Share (EPS)
Actual
$1.86
Estimated
$1.60
Surprise
+$0.26
Surprise %
+16.25%
Revenue
Actual
$11.61B
Estimated
$10.71B
Surprise
+$899.32M
Surprise %
+8.39%
Historical Earnings
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $1.86 | $1.57 | $1.66 | $1.66 | $1.49 | $1.32 | $1.15 | $1.20 |
| EPS (Estimated) | $1.60 | $1.43 | $1.46 | $1.43 | $1.27 | $1.05 | $1.13 | $0.99 |
| EPS Surprise | +$0.26 | +$0.14 | +$0.20 | +$0.23 | +$0.22 | +$0.27 | +$0.02 | +$0.21 |
| % Diff | +16.3% | +9.8% | +13.7% | +16.1% | +17.3% | +25.7% | +1.8% | +21.2% |
| Revenue | ||||||||
| Revenue (Actual) | $11.61B | $11.87B | $12.22B | $11.02B | $9.93B | $10.81B | $9.84B | $9.09B |
| Revenue (Estimated) | $10.71B | $11.25B | $10.39B | $9.55B | $9.05B | $9.49B | $9.02B | $8.46B |
| Revenue Surprise | +$899.32M | +$616.89M | +$1.84B | +$1.47B | +$883.49M | +$1.32B | +$819.79M | +$632.12M |
| % Diff | +8.4% | +5.5% | +17.7% | +15.4% | +9.8% | +14.0% | +9.1% | +7.5% |
Valuation
GE Aerospace currently trades at premium valuation multiples relative to its sector and historical averages, supported by strong revenue growth and robust profitability metrics. While certain valuation ratios are elevated, analysts generally maintain a positive outlook with upward price targets, reflecting confidence in GE's operational momentum and market positioning. The stock appears fairly valued to modestly overvalued given its strong fundamentals but elevated multiples.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 38.03 | 32.35 | 37.20 | 33.86 | 27.07 | 23.69 | 27.82 | 34.19 |
| Price to Sales | 23.77 | 25.84 | 26.26 | 24.92 | 21.56 | 16.65 | 20.94 | 19.04 |
| Price to Book | 16.31 | 17.60 | 17.06 | 14.35 | 11.12 | 9.30 | 10.92 | 9.31 |
| Enterprise Value to EBITDA | 178.92 | 98.82 | 108.84 | 99.29 | 80.78 | 66.33 | 86.87 | 91.93 |
| Enterprise Value to Revenue | 24.52 | 26.48 | 27.10 | 25.75 | 22.39 | 17.27 | 21.69 | 20.00 |
Sentiment & Analyst Ratings
The overall market sentiment for GE is positive, supported by strong financial results, revenue growth, and optimistic analyst price targets indicating significant upside potential. News coverage highlights GE Aerospace's robust earnings beat, raised guidance, and strategic contracts, reinforcing confidence in sustained growth. Retail investor discussion mirrors a bullish stance, viewing recent price dips as buying opportunities amid aerospace and defense sector tailwinds.
Analyst Recommendations
Risk Assessment
GE Aerospace currently demonstrates moderate financial stability with near-par liquidity metrics and manageable leverage, supported by a strong backlog and robust aftermarket revenue. However, the company faces significant risks including supply chain challenges, inflationary pressures, and geopolitical uncertainties impacting fuel costs and airline growth. Analyst sentiment remains positive with a buy consensus, though valuation concerns and macroeconomic risks temper the near-term outlook.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q1 2026
Quick Ratio
Latest Quarter: Q1 2026
Debt-to-Equity
Latest Quarter: Q1 2026
Debt-to-Assets
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 1.01 | 1.04 | 1.05 | 1.04 | 1.08 | 1.09 | 1.13 | 1.14 |
| Quick Ratio | 0.70 | 0.74 | 0.73 | 0.73 | 0.77 | 0.81 | 0.85 | 0.85 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 1.12 | 1.10 | 1.21 | 1.05 | 1.08 | 1.05 | 1.12 | 1.12 |
| Debt-to-Assets | 0.16 | 0.16 | 0.18 | 0.16 | 0.17 | 0.16 | 0.17 | 0.17 |
Liquidity Assessment
Current Ratio: 1.01(Adequate)
Quick Ratio: 0.70(Weak)
The company has relatively weak liquidity and may face challenges meeting short-term obligations.
Solvency Assessment
Debt-to-Equity: 1.12(High)
Debt-to-Assets: 0.16(Low)
The company has relatively high debt levels, which may increase financial risk in economic downturns.
Frequently Asked Questions about GE
AI Answers: Common Questions About GE
Get AI-powered answers to the questions investors ask most about GE Aerospace
GE is not an ideal buy at current levels for short-term traders due to a P/E of 36.87, price below key moving averages ($297.15 vs. $299-$305), and technical signals indicating a topping phase. However, for long-term investors, the strong earnings growth and analyst price targets ($352.50-$369) suggest buying on pullbacks or consolidation could be attractive.
There is no strong reason to sell if you already own GE, as fundamentals remain robust and sentiment is positive. However, with technicals showing weakness and valuation stretched, trimming or holding is prudent unless the stock breaks below key support ($296.86), which could signal further downside.
The biggest risks are supply chain disruptions, inflation-driven margin compression (liquidity ratios near 1.0, quick ratio <0.7), and macro/geopolitical shocks that could depress airline demand. Valuation risk is also present, as high multiples could compress if growth slows.
Analyst price targets range from $352.50 to $369, implying 15-21% upside. Technical resistance is at $305-$306, with support at $296.86; a breakdown below this could target $290-$285. Upside is contingent on continued earnings momentum.
GE is fairly valued to modestly overvalued, with a P/E of 36.87 and EV/EBITDA well above sector median. The premium is justified by strong growth and profitability, but leaves less room for error or upside unless growth accelerates further.
Fundamentals are very strong: revenue up 18.5% YoY, EPS up 36.2%, operating margin >19%, and eight straight quarters of earnings beats. Recurring aftermarket revenue and a robust order backlog support sustainability.
Technical analysis is neutral to bearish: price is below 50/150/200 SMAs, RSI is neutral at 51, and ADX is moderate at 23.4. The stock is in a topping/distribution phase, so traders should wait for stabilization or a confirmed reversal before entering.
Key catalysts include upcoming earnings reports (given the recent 16% EPS beat), new contract announcements, and any major product or technology launches. Macro events such as changes in airline demand or geopolitical developments could also move the stock.
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