| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 19 | 38.2x | 17.8x | Bottom tier | |
Growth | 53 | 21.7% | 7.1% | Around median | |
Quality | 81 | 22.5% | 4.5% | Top tier | |
Safety | 71 | 0.9x | 2.6x | Top tier | |
Capital Return | 61 | 0.51% | 2.12% | Around median | |
Momentum | 63 | 33.2% | 2.9% | Around median | |
Sentiment | 45 | 13 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
GE Aerospace manufactures commercial and military aircraft engines and provides spare parts, maintenance, and repair services, benefiting from a decades-long service cycle for a fleet of 80,000 engines with more than 2.3 billion flight hours. Its operations are divided between Commercial Engines & Services CES and Defense & Propulsion Technologies DPT; commercial services, supported by long-term contracts and recurring shop visits, represent the largest and highest-margin part of the portfolio, while new engine sales expand the installed base that generates subsequent service revenue.
In fiscal Q2 2026, EDGAR revenue was approximately $13.3 billion, net income was $2.4 billion, and earnings per share were $2.26, equating to a calculated net income margin of approximately 18.0%. According to the non-GAAP results presented during the July 16, 2026 call, revenue increased 24%, operating profit reached $2.7 billion, up 18%, while operating margin declined 130 basis points to 21.7% and adjusted earnings per share increased 22% to $2.02.
CES led growth in fiscal Q2 2026, with revenue increasing 27% and profit rising 20% to $2.7 billion, as service revenue grew 26% and equipment revenue grew 30%, although its margin declined 160 basis points to 27.3%. DPT revenue increased 16%, profit rose 18%, and its margin improved 30 basis points to 13.8%; the company also generated $3 billion in free cash flow, up 43%, with conversion exceeding 140%.
The average analyst price target is $418.44, with a consensus Buy rating and a wide range of $375 to $455; the average is approximately 7.6% above the 52-week range high of $388.84. However, the low target is approximately 3.6% below the annual range high, so the valuation reflects a meaningful divergence over whether service growth and raised guidance can offset pressure on CES margins and the supply chain.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Commercial services were the leading driver in fiscal Q2 2026, with revenue increasing 26% and internal LEAP shop visits rising more than 50%. The commercial services backlog reached approximately $170 billion, with more than 95% of expected spare parts revenue for fiscal Q3 2026 included in the backlog. Accordingly, the company raised its fiscal 2026 commercial services growth outlook from the mid-teens to the low twenties.
LEAP deliveries increased 41% during the first half of fiscal 2026, making the platform the company's fastest-growing. Management expects LEAP shop visits to grow at a compound annual rate of approximately 25% through 2030, with the external service channel's share rising to approximately 30%. Copa Airlines also selected up to 120 LEAP-1B engines for its 737 MAX aircraft, supporting growth in the installed base and subsequent service revenue.
On July 16, 2026, the company raised its revenue growth outlook to the upper teens from the low teens. It raised its operating profit range to $10.55–$10.75 billion and its adjusted earnings per share range to $7.65–$7.85. The free cash flow outlook also became $8.9–$9.2 billion, an increase of $650 million over the upper bound of the previous guidance.
Automated analysis for informational purposes only — not investment advice.
The company's operating margin declined 130 basis points to 21.7% in fiscal Q2 2026 despite a 24% increase in revenue. In CES, the margin declined 160 basis points to 27.3% due to installed engine growth, GE9X investments, and inflation. Management explained that LEAP services are improving but remain below the overall service portfolio margin, and that losses on initial GE9X units are expected to peak in 2028.
Overdue spare parts shipments increased 20% sequentially in fiscal Q2 2026 due to material availability constraints. Engines removed and scheduled for removal in fiscal Q3 2026 also exceeded the annual shop visit guidance by more than 40%, illustrating demand pressure on available capacity. Despite FLIGHT DECK improvements, management said that growth in 2027 and beyond will depend heavily on continuing to relieve supplier bottlenecks and expand maintenance and repair capacity.
DPT revenue increased 16% in fiscal Q2 2026, profit grew 18%, and margin improved 30 basis points to 13.8%. The segment's backlog exceeded $30 billion, an increase of approximately $5 billion since the start of fiscal 2026. On August 17, 2026, the GEK800 engine, developed with Kratos, was announced as a second propulsion source for the JASSM program after receiving the military designation F143-ZZ-100.
