GE

GE Aerospace's Defense & Propulsion Technologies segment reported 7% revenue growth to $3.47 billion in Q3 2026, with orders surging 18%. The company secured multiple defense contracts including a $1.4 billion deal for T408 engines for U.S. Marine Corps helicopters and expects low-double-digit adjusted revenue growth for 2026, supported by rising defense budgets and geopolitical tensions.

Zacks analysts reviewed three major stocks on October 23, 2026. Amazon outperformed its industry but faces margin pressures from AI infrastructure spending and rising debt.

GE Aerospace declined less than its industry peers but confronts production cost challenges and supply chain constraints. TotalEnergies underperformed its industry peer group despite a balanced portfolio, with geopolitical risks and commodity volatility as key concerns.

GE Vernova, a manufacturer of wind turbines, natural gas turbines, and grid management solutions, has surged nearly 600% since its 2024 spinoff from GE Aerospace. Despite a recent lull since April, the article argues this presents a buying opportunity.

The company's $176 billion backlog, driven by AI data center demand and broader electricity needs, supports durable long-term growth. With 80% of orders from traditional customers and only 20% from data centers, the growth outlook extends beyond AI trends. Analysts rate GEV a strong buy with a consensus price target of $1,199.47.

GE Aerospace reported record Q3 earnings of $2.25 per share, up 36% YoY, with revenue climbing 18% to $13.29 billion. The company raised full-year 2026 guidance for revenue growth to 19%-20% and adjusted EPS to $8.00-$8.10, driven by strong commercial engine demand and robust aftermarket services. However, GE shares declined post-earnings as investors weighed the company's premium 35X forward earnings valuation and sustainability concerns, though the pullback may present a buying opportunity for long-term investors.

GE Aerospace delivered robust third-quarter 2026 results with adjusted EPS of $2.25, up 36% year-over-year and beating estimates by 11.4%. Total orders surged 49% to $18.99 billion, driven by strong commercial engine demand, including over 1,800 engine commitments at Farnborough. The company raised its 2026 adjusted EPS guidance to $8.00-$8.10 and free cash flow projection to $9.1-$9.4 billion.

Stock futures opened lower as investors await economic data and earnings reports. The housing market continues to struggle with September Housing Starts and Building Permits missing expectations, driven by elevated mortgage rates.

GE and GM both beat Q3 earnings estimates, though GM's downward guidance weighed on shares. Netflix, United Airlines, and Intuitive Surgical are set to report earnings today.

Stock futures opened lower on October 20, 2026, driven by rising oil prices amid geopolitical tensions in the Strait of Hormuz. September housing data disappointed with starts and permits both declining, reflecting weakness in the real estate market due to elevated mortgage rates.

GE and GM beat Q3 earnings expectations, though GM's downward guidance pressured shares. Netflix, United Airlines, and Intuitive Surgical are set to report earnings after market close.

GE Aerospace reported Q3 2026 earnings of $2.25 per share, beating consensus estimates of $2.02 and representing an 11.39% surprise. Revenue reached $13.29 billion, surpassing estimates by 4.99%.

The company has beaten consensus estimates four consecutive quarters. Despite strong earnings, GE shares have underperformed the S&P 500 year-to-date, gaining 1.1% versus the market's 12.4% gain. The stock holds a Zacks Rank #2 (Buy) rating with favorable estimate revision trends.

GE Aerospace is reporting third-quarter earnings on Tuesday with analysts expecting $2.02 EPS (21.7% growth YoY) and $12.65B in revenue (12% growth). The company has beaten earnings estimates for four consecutive quarters and benefits from strong demand for commercial engines and defense spending. However, GE shares have gained only 3% in 2026 despite broader market strength.

GE Aerospace is outperforming its Aerospace peers with a year-to-date gain of 1.9% compared to the sector's average loss of 12.2%. The stock holds a Zacks Rank #2 (Buy) with improving earnings outlook, as consensus estimates have moved 1.4% higher in the past quarter. Howmet also stands out as a top performer in the sector with a 7.8% year-to-date return and a Zacks Rank #1 (Strong Buy).

GE Aerospace is set to report Q3 2026 earnings on October 20 with expected EPS of $2.02 and revenues of $12.7 billion, representing 21.7% and 11.9% year-over-year growth respectively. Strong engine demand, aftermarket services, and defense orders are expected to drive results, supported by a $210+ billion backlog. However, elevated costs and supply chain constraints pose risks, and the stock trades at a premium valuation of 35.43X forward P/E compared to the industry average of 27.37X.

GE Aerospace and Lockheed Martin represent two distinct aerospace investment strategies. GE Aerospace benefits from a commercial aviation boom with strong revenue growth (18.5% YoY), high margins (19%), and a $210B+ backlog.

Lockheed Martin offers stability through defense contracts with 72% U.S. Government revenue, though slower growth (5.7% YoY) and higher leverage (3.2x debt-to-equity). The article recommends GE Aerospace for growth-focused investors seeking rapid cash generation, while Lockheed Martin suits those preferring steady, predictable dividend returns.

GE Aerospace (GE) closed at $311.81, up 1.56%, outperforming the S&P 500's 0.33% gain. The company holds a Zacks Rank #2 (Buy) rating with expected Q3 2026 EPS of $2.01 (+21.08% YoY) and full-year earnings of $7.91 per share (+24.18% YoY). However, the stock trades at a premium Forward P/E of 38.81 versus the industry average of 21.07, and a PEG ratio of 2.24 above the sector average of 1.58.

GE Aerospace has been trending on Zacks.com with a Zacks Rank #2 (Buy) rating. The company shows strong earnings growth expectations of +24.2% for the current fiscal year and +14.4% for next year, with consistent revenue growth forecasts of +19.5% and +10.5% respectively. However, the stock trades at a premium valuation (Value Grade D) compared to peers and has underperformed the S&P 500 by 4% over the past month.

Boeing's board of directors has significantly strengthened with the addition of experienced aviation and aerospace executives under new CEO Kelly Ortberg. The board now includes leaders like David Joyce (former GE Aviation CEO), Akhil Johri (former United Technologies CFO), and David Gitlin (former Collins Aerospace president). This expertise is positioned as crucial for Boeing's long-term turnaround, including developing next-generation aircraft while managing a $715 billion backlog and restoring its balance sheet.

GE Vernova stock has surged sevenfold since its April 2024 spinoff from General Electric, trading above $1,000 per share. With a $176 billion order backlog, strong free cash flow generation ($5.1B in Q2), and expanding margins, the company's strong fundamentals have led analysts to speculate whether a stock split may be forthcoming. While stock splits don't change company value, they can signal management confidence and improve accessibility to retail investors.

GE Aerospace emerges as the better investment choice in 2026 compared to Boeing. While Boeing boasts a massive order backlog and leading position in commercial aviation, it struggles with negative free cash flow, a 10x debt-to-equity ratio, and declining profitability forecasts. GE Aerospace, conversely, demonstrates strong fundamentals with a 19% net margin, $7.3 billion in free cash flow, and a more reasonable valuation multiple, supported by recent major contracts from airlines and the U.S. military.

GE Aerospace shares have declined 15% in three months, but strong commercial engine demand, robust Q2 2026 revenue growth of 27%, and raised free cash flow guidance to $8.9-$9.2 billion support a positive outlook. However, elevated valuation at 34.79X forward P/E (above industry average of 27.16X), rising debt levels of $19.2 billion, and surging costs present risks. The stock maintains a Zacks Rank #2 (Buy) rating despite trading below its 50-day and 200-day moving averages.

A comparison of General Dynamics (GD) and GE Aerospace (GE) in the Aerospace-Defense sector reveals that General Dynamics is the superior value option. While both companies hold a Zacks Rank #2 (Buy) with improving earnings outlooks, GD has significantly better valuation metrics, including a forward P/E of 19.27 versus GE's 38.38, a PEG ratio of 1.89 versus 2.22, and a P/B ratio of 3.29 versus 17.63. GD received a Value grade of B compared to GE's D grade.

GE Aerospace (GE) closed at $306.34, down 1.04%, underperforming the S&P 500's 0.66% gain. The stock has declined 8.18% over the past month.

The company is expected to report Q3 earnings on October 20, 2026, with EPS projected at $2.01 (up 21.08% YoY) and revenue of $12.66 billion (up 11.96% YoY). GE Aerospace holds a Zacks Rank #3 (Hold) with a Forward P/E of 39.13, trading at a premium to its industry average of 23.53.