GE Aerospace (NYSE:GE) shares have given up their prior gain and are trading lower on Thursday. The company reported better-than-expected fourth-quarter financial results and issued a better-than-expected FY26 EPS outlook.
For 2026, GE Aerospace guided to adjusted EPS of $7.10 to $7.40 versus the $7.12 estimate, and free cash flow of $8.0 billion to $8.4 billion, with adjusted ETR below 17% and no planned debt repayment, as it intends to refinance 2026+ maturities.
Analyst View
Bank of America (BofA) Securities analyst Ronald J. Epstein maintained a Buy rating on the stock with a price forecast of $365.
The analyst writes that GE Aerospace reported strong fourth-quarter results, with adjusted EPS of $1.57, surpassing both BofA’s $1.39 and Bloomberg’s $1.44 estimates.
Epstein says that the upside was driven by higher-than-expected revenue and margins.
The analyst adds that revenues reached $11.865 billion, which compared favorably to BofA’s $11.25 billion and Bloomberg’s $11.236 billion estimates.
Commercial Engines & Services segment generated $9.468 billion, beating BofA’s $9.031 billion estimate, fueled by a 31% Y/Y increase in Services revenue from higher shop visit volumes and spares output, adds the analyst.
Also, the analyst notes that the Defense & Propulsion Technologies segment posted $2.839 billion in revenue, above BofA’s $2.628 billion forecast, with Defense up 2% (price/mix offsetting a 7% volume decline) and Propulsion rising 33% on increased Avio volumes.
Moreover, Epstein writes that GE Aerospace’s 2026 outlook for revenue and adjusted EPS compares favorably with BofA estimates.
GE Price Action: GE Aerospace shares were down 5.52% at $305.81 at the time of publication on Thursday, according to Benzinga Pro data.
Photo by Jonathan Weiss via Shutterstock
Recent Comments