GE Aerospace (GE)
The desk's stance
On our research list, not on the slate.
What the company does
In short: Jet engines and aerospace systems. Category: Commercial & Defense Aerospace Leader. Sector: Industrials, Aerospace & Defense.
G-Street Value and Score
G-Street Value: $314.86, computed Oct 18, 2026 (confidence: medium).
How we got there: 50% analyst leg $359.9 (street consensus, after 8% optimism discount) + 50% GainStreet factor value $269.81 (29.61× fwd EPS anchored to aerospace-defense multiples). 5 analyst targets have no linked source and are shown but not counted; this value will not open a position until they are sourced.
G-Street Score: 59 out of 100 (Weak).
- Top-line growth & guidance: 22 of 32
- Margin power: 4 of 15
- Revenue visibility & quality: 8 of 11
- Profitability & balance sheet: 16 of 24
- Capital allocation & governance: 3 of 6
- Valuation, sentiment & momentum: 6 of 12
Our current thesis
Updated Oct 13, 2026
The thesis
- Installed base across LEAP and widebody platforms secures decades of high-margin aftermarket services.
- Record backlog exceeding $210B provides unmatched multi-year revenue visibility and operational lean execution.
- Strong free cash flow generation of $8.4B TTM supports sustained share repurchases and balance-sheet deleveraging.
Risks
- Premium valuation at 33.9x forward earnings leaves little cushion for supply-chain turnaround delays.
- Persistent component shortages risk slowing shop turnaround times and new engine delivery milestones.
- Carrying $20.2B in total debt requires prudent capital management amid elevated interest rates.
What we're watching
- Q3 2026 financial results and commercial engine delivery numbers on October 20, 2026.
- Services shop visit turnaround cadence and narrowbody spare parts pricing momentum.
- Technical price support defense around the critical $300 psychological benchmark level.
Latest
GE Aerospace trades at $308.64, down 21% from its $388.84 peak as shares consolidate ahead of Q3 earnings on October 20, 2026. Fundamentals remain strong following Q2 revenue growth of 21.1% YoY to $13.35B, $2.86B in quarterly free cash flow, and a fourth straight EPS beat ($2.02 vs. $1.86 estimate). Valuation is rich at 33.9x forward earnings, keeping near-term gains constrained by aerospace supply chain friction.
Key numbers
As of Oct 16, 2026: market cap $325.6B · revenue growth +21.1% year over year · gross margin 31.1% · net margin 17.7% · forward P/E 34.4 · next earnings Oct 20, 2026.