TLDR
- GE Aerospace delivered Q4 results above forecasts with $1.57 EPS compared to analyst expectations of $1.43, while revenue climbed 17.6% year-over-year to $11.90B
- Bernstein upgraded its price target to $405, pointing to enhanced widebody services revenue and better LEAP engine supply chain dynamics
- Shares reached approximately $346, approaching the 52-week high of $348.48, after a 72% climb over the trailing twelve months
- The company increased its quarterly dividend payment from $0.36 to $0.47 per share, equating to a $1.88 annual yield
- Executives divested more than 37,000 shares valued at $11.4M during the previous 90 days, with institutional holders controlling 74.77% of shares
GE Aerospace shares advanced approximately 1.1% during Monday’s session, touching $346.17 at mid-day. This positions the stock within striking distance of its 52-week peak at $348.48.
The rally extends an impressive run for shareholders. Throughout the past twelve months, GE has delivered gains approaching 72%.
Bernstein SocGen Group boosted its price objective on GE from $374 to $405 on March 3, maintaining an Outperform rating. The research firm highlighted enhanced content and pricing for GEnx and GE90 widebody engines as primary catalysts.
Bernstein anticipates CFM56 shop visits will maintain levels exceeding 2,300 until at least 2030, supported by persistent capacity limitations and robust demand. This provides a dependable foundation for recurring services income.
Regarding LEAP engines, Bernstein forecasts that services revenue will match CFM56 levels by 2030. The firm expects margin improvement through updated contract frameworks, including revised long-term service agreements.
Supply chain dynamics for LEAP deliveries show signs of strengthening. Airbus verified during its Q4 earnings discussion that CFM remains positioned to fulfill engine delivery obligations.
Bernstein’s 2026 EPS projection stands at $7.47, modestly ahead of the $7.40 consensus figure. Looking toward 2028, the firm anticipates EPS of $10.39 compared to consensus estimates of $9.47.
Earnings Beat and Dividend Hike
GE Aerospace delivered Q4 earnings of $1.57 EPS, exceeding the $1.43 analyst consensus by $0.14. Revenue reached $11.90 billion, surpassing estimates of $11.27 billion while representing a 17.6% increase from the prior year period.
The company established FY 2026 guidance at $7.10–$7.40 EPS. Wall Street analysts currently forecast full-year EPS of $5.40.
GE elevated its quarterly dividend from $0.36 to $0.47 per share. The payment will be distributed April 27, with March 9 as the record date. This establishes the annualized dividend at $1.88, representing a yield of approximately 0.5%.
Analyst Ratings and Insider Activity
The overall analyst sentiment remains favorable. GE currently carries one Strong Buy rating, 16 Buy ratings, one Hold rating, and one Sell rating. The consensus price target stands at $329.29, while Morgan Stanley launched coverage with an Overweight rating and a $425 objective in February.
Conversely, BNP Paribas Exane reduced its target from $305 to $290 while maintaining an Underperform rating.
Executive transactions have trended toward divestment. SVP Amy Gowder divested 4,000 shares at $305.73 on February 2, trimming her holdings by 19.48%. VP Robert Giglietti sold 3,035 shares at $305.51 on January 30, representing a 22.29% reduction. Combined, company insiders divested 37,398 shares valued at approximately $11.45 million throughout the past 90 days.
Institutional investors control 74.77% of outstanding shares. Vanguard maintains the largest stake at more than 92.7 million shares.
On the operational front, GE and Kratos Defense obtained a collaborative $12.4 million contract to engineer the GEK1500 engine for the U.S. Air Force, designated for unmanned aerial systems and collaborative combat aircraft.
GE also identified a possible durability concern with a seal on the engine powering Boeing’s 777X aircraft, which could necessitate a redesign and retrofitting during scheduled maintenance intervals.
