TLDR
- GE Aerospace posted Q3 earnings of $1.66 per share, crushing analyst forecasts of $1.46 per share
- Quarterly revenue hit $11.3 billion, well above the $10.4 billion Wall Street consensus
- Full-year 2025 earnings guidance increased to $6.00-$6.20 per share from $5.60-$5.80 previously
- Commercial engine division revenue surged 27% while defense sales climbed 26% year-over-year
- Stock has gained 80% in 2025, beating the S&P 500 by 67 percentage points
GE Aerospace keeps winning. The company reported third quarter earnings Monday that sailed past Wall Street expectations on both the top and bottom lines.
Adjusted earnings came in at $1.66 per share. Analysts were looking for $1.46 per share.
Revenue reached $11.3 billion for the quarter. The Street had penciled in $10.4 billion.
This marks another quarter of outperformance for GE Aerospace. The jet engine maker has beaten estimates every single quarter since splitting from GE Vernova in 2024.
Last year’s Q3 results showed earnings of $1.15 per share on $8.9 billion in revenue. The numbers tell a story of accelerating growth.
Management responded by lifting full-year guidance. The company now expects 2025 earnings between $6.00 and $6.20 per share.
That’s up from the prior range of $5.60 to $5.80 per share. Wall Street’s consensus sits at $5.92, meaning GE just raised above analyst expectations.
Commercial Engines Power the Quarter
The commercial engine and services business drove results. This division posted revenue of $8.9 billion, up 27% from last year.
New orders totaled $10.3 billion. Operating margins in the segment expanded to 27.4%.
That’s a 1.7 percentage point jump versus the same quarter in 2024. Demand for commercial air travel remains strong.
The defense side delivered too. Defense revenue grew 26% compared to Q3 2024.
The defense backlog also grew during the period. This gives GE visibility on future work and revenue.
Stock Trades at Premium Valuation
Shares rose 1.3% to $36.60 in premarket action. The stock briefly hit a 52-week high earlier in Monday’s session.
GE Aerospace touched an all-time high near $300 in mid-September. It took 9,150 days to reach that milestone.
The stock is up about 80% year-to-date. That crushes the S&P 500’s return by 67 percentage points.
Strong performance has pushed the valuation higher. Shares trade at roughly 44 times estimated 2026 earnings.
Compare that to RTX at 24 times 2026 earnings. But GE Aerospace’s faster earnings growth rate justifies some of the premium.
Free Cash Flow Outlook Improves
The company raised its free cash flow target for 2025. Management now expects to generate approximately $7.1 billion.
Previous guidance called for $6.7 billion. The $400 million increase reflects better-than-expected operational results.
Options traders expected a 5% post-earnings move in either direction. Historical patterns show an average 6% move over the past four reports.
Vertical Research Partners analyst Rob Stallard rates the stock a Buy with a $340 price target. He notes investors don’t seem concerned about valuation as long as earnings and cash flow growth continue.
The company has delivered 11 positive earnings revisions in the last 90 days with zero negative revisions. InvestingPro rates GE Aerospace’s financial health as “good performance.”
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