Finance

GE Aerospace Soars: Will This Aerospace Stock Continue to Outperform in 2025?

GE Aerospace stock surged after exceeding Q3 expectations and raising its financial outlook through 2028.

byAndres Castro

October 27, 2025, 3:20 PM

The GE Aerospace manufacturing location in Beavercreek, Ohio. By Jonathan Weiss / Shutterstock.com.

Executive Summary

GE Aerospace reported strong third-quarter earnings with a 44% increase in earnings and a 26% jump in revenue, driven by commercial engines and defense sales.

The company significantly raised its financial guidance for 2025 and long-term projections through 2028, expecting higher revenue growth, operating profit, and earnings per share.

GE Aerospace’s stock is a top performer, up over 80% year-to-date, leading analysts to raise price targets and maintain “buy” ratings due to robust demand and a positive outlook.

The Story So Far

GE Aerospace’s recent robust third-quarter earnings report significantly exceeded expectations, leading the company to raise its financial outlook for both 2025 and the long term. This strong performance and optimistic future projections have, in turn, prompted multiple analysts to increase their price targets for the stock, signaling high market confidence.

Why This Matters

GE Aerospace’s strong third-quarter financial performance and significantly raised long-term outlook signal robust growth and profitability, driving its stock up over 80% year-to-date and boosting investor confidence. This performance firmly establishes the company as a leading player in the aerospace sector, with analysts increasing price targets and noting its “best-in-class” status amid strong demand.

Who Thinks What?

GE Aerospace believes its financial performance is robust, having exceeded expectations in the third quarter and prompting it to raise its financial outlook for 2025 and long-term projections through 2028.

The stock market and investors view GE Aerospace as a top-performing stock, with its shares climbing over 80% year-to-date and its relative strength line near record highs.

Financial analysts, including those from Bank of America and JPMorgan, are highly confident in GE Aerospace, increasing their price targets and maintaining “buy” ratings due to strong demand and the company’s position as a “best-in-class operator and innovator.”

GE Aerospace (GE) was highlighted as a top-performing stock on Monday, following a robust third-quarter earnings report last week that saw the company exceed expectations and raise its financial outlook for both 2025 and the long term. The aerospace manufacturer’s stock advanced, pushing its year-to-date gains to over 80% and leading multiple analysts to increase their price targets.

Financial Performance Highlights

Last week, GE Aerospace reported a 44% increase in earnings and a 26% jump in revenue for the third quarter, marking its second consecutive quarter of accelerated sales growth. Total orders for the quarter rose 2% to $12.8 billion.

Commercial engines and services revenue surged 27% to $8.9 billion, surpassing analyst projections of $8.34 billion. Defense and propulsion technologies sales also grew by 26% to $2.8 billion.

Revised Outlook

The company elevated its 2025 guidance, now expecting adjusted revenue growth in the high teens, up from previous mid-teens forecasts. Operating profit is projected to reach between $8.65 billion and $8.85 billion, an increase from its prior views of $8.2 billion to $8.5 billion.

Adjusted earnings per share are anticipated to be between $6.00 and $6.20, up from previous expectations of $5.60 to $5.80. Free cash flow for the year is expected to range from $7.1 billion to $7.3 billion.

Long-Term Projections

Furthermore, GE Aerospace revised its long-term outlook through 2028. It now projects a double-digit compound annual growth rate for revenue from 2024 through 2028, an increase from its previous high-single-digit forecast for 2025-2028. The manufacturer raised its 2028 operating profit target to approximately $11.5 billion, up from $10 billion, with 2028 earnings expected to hit about $8.40 per share adjusted.

Stock Market Activity

On Monday, GE Aerospace shares climbed 1.6% to $308.61, extending its streak to a seventh consecutive monthly advance. The stock, which hit a record high of $316.53 on October 21, experienced volatile trading last week but has since rebounded. It is currently trading slightly above a 307.25 buy point from a short consolidation pattern.

The stock’s relative strength line is also near record highs, a positive indicator in the current market. For 2025, GE Aerospace stock is up more than 80%, positioning it among the top 12 best-performing S&P 500 stocks. Since bottoming at $159.36 in April, GE shares have moved 94% higher.

Analyst Confidence

Following the earnings report, Bank of America raised its price target for GE Aerospace to $365 from $310, maintaining a “buy” rating. Analysts at the firm cited a “solid set up into 2026” for the “best-in-class operator and innovator.”

JPMorgan similarly increased its target to $325 from $275, noting that GE Aerospace “met the high bar in Q3 and then some” amid strong demand. The company currently holds a perfect 99 Composite Rating, an 89 Relative Strength Rating, and a robust 97 EPS Rating. GE Aerospace manufactures and collaborates on propulsion technologies, including those used in missile engines, and faces tariff risks, though its business activity remains strong.

Key Takeaways

GE Aerospace’s robust financial results, optimistic future projections, and strong market performance, coupled with increased confidence from leading financial analysts, underscore its position as a significant performer in the current market environment.