TLDR
- GE Aerospace exceeded Q4 earnings projections with $1.57 EPS compared to analyst estimates of $1.43, while revenue jumped 17.6% annually to $11.90B
- Bernstein upgraded its price objective to $405, highlighting robust widebody services revenue and enhanced LEAP engine supply chain dynamics
- Shares traded around $346, approaching the 52-week peak of $348.48, after climbing 72% in the previous 12 months
- The company increased its quarterly dividend payment from $0.36 to $0.47 per share, equating to a $1.88 annual yield
- Corporate insiders disposed of more than 37,000 shares valued at $11.4M over the past three months, with institutional investors controlling 74.77%
Shares of GE Aerospace advanced approximately 1.1% during Monday’s session, hitting $346.17 in afternoon activity. This price level positions the stock near its yearly peak of $348.48.
The upward momentum follows an impressive performance period for the aerospace manufacturer. Throughout the trailing 12-month period, GE has delivered approximately 72% returns.
Bernstein SocGen Group elevated its price objective for GE from $374 to $405 on March 3, maintaining its Outperform stance. The research firm highlighted enhanced content and improved pricing for GEnx and GE90 widebody engines as primary catalysts.
Bernstein anticipates CFM56 shop visits will maintain levels above 2,300 units through 2030 at minimum, supported by persistent capacity limitations and robust market demand. This provides a dependable foundation for ongoing services income.
Regarding LEAP engines, Bernstein forecasts that services revenue will match CFM56 performance levels by decade’s end. The firm expects margin improvement through updated contractual frameworks, including renegotiated long-term service agreements.
Supply chain dynamics for LEAP engine deliveries show signs of enhancement. Airbus verified during its Q4 earnings discussion that CFM remains on schedule to fulfill engine delivery obligations.
Bernstein’s 2026 EPS projection stands at $7.47, modestly exceeding the $7.40 Street consensus. Looking toward 2028, the firm anticipates EPS of $10.39 compared to the consensus forecast of $9.47.
Earnings Beat and Dividend Hike
GE Aerospace delivered Q4 earnings of $1.57 per share, surpassing the $1.43 Wall Street consensus by $0.14. Quarterly revenue reached $11.90 billion, exceeding projections of $11.27 billion and representing a 17.6% year-over-year increase.
Management established FY 2026 guidance in the range of $7.10–$7.40 EPS. Wall Street analysts presently forecast full-year EPS of $5.40.
The company elevated its quarterly dividend distribution from $0.36 to $0.47 per share. The payment will be distributed April 27 to shareholders of record as of March 9. This brings the annualized dividend to $1.88, yielding approximately 0.5%.
Analyst Ratings and Insider Activity
The overall analyst sentiment remains predominantly bullish. GE currently carries one Strong Buy recommendation, 16 Buy ratings, one Hold designation, and one Sell rating. The consensus price target stands at $329.29, although Morgan Stanley launched coverage with an Overweight recommendation and a $425 objective in February.
Conversely, BNP Paribas Exane reduced its target from $305 to $290 while maintaining an Underperform rating.
Insider transactions have predominantly involved share sales. SVP Amy Gowder disposed of 4,000 shares at $305.73 on February 2, decreasing her stake by 19.48%. VP Robert Giglietti sold 3,035 shares at $305.51 on January 30, representing a 22.29% reduction. Collectively, company insiders sold 37,398 shares valued at approximately $11.45 million during the past 90 days.
Institutional stakeholders control 74.77% of outstanding shares. Vanguard maintains the largest stake with more than 92.7 million shares.
On the operational front, GE and Kratos Defense obtained a combined $12.4 million contract to develop the GEK1500 engine for the U.S. Air Force, targeting unmanned aerial systems and collaborative combat aircraft applications.
GE additionally disclosed a possible durability concern involving a seal component on the engine powering Boeing’s 777X aircraft, which could necessitate redesign work and retrofitting during scheduled maintenance intervals.
