- Blowout Q3 results: GE Aerospace NYSE:GE reported blowout Q3 2025 earnings on Oct. 21, with GAAP revenue of $12.2 billion (+24% YoY) and GAAP EPS of $2.04 (+31% YoY) marketscreener.com. Adjusted revenue was $11.3 billion (+26%) and adjusted EPS $1.66 (+44%) marketscreener.com reuters.com. Free cash flow topped $2.4 billion (+30%) marketscreener.com. These results far exceeded Wall Street’s expectations (analysts had forecast ~$1.45 EPS on ~$10.3B revenue ).
- Outlook raised again: CEO Larry Culp hailed an “exceptional quarter” and said GE is “raising our full-year guidance across the board” marketscreener.com. The company now expects 2025 adjusted EPS of $6.00–$6.20 (up from $5.60–$5.80 previously) reuters.com – roughly +30% growth – citing booming aviation demand. Robust engine orders and better production (especially on GE’s LEAP and GE9X jet engines) drove the upgrade reuters.com ts2.tech.
- Stock jumps to near records: GE’s pure-play aerospace stock has been on a tear – up about 78% YTD to ~$300 by mid-Oct ainvest.com – and popped about +2.7% in pre-market trading on Oct. 21 seekingalpha.com. The run reflects optimism: Boeing and Airbus are raising production (Boeing won approval to boost 737 MAX output to 42/mo ts2.tech), fueling a massive $175+ billion engine backlog .
- Analysts mostly bullish: Seventeen analysts rate GE Aerospace a Buy/Outperform (15 Buys, 1 Hold, 1 Sell), with price targets largely in the $300–$321 range (average ~$264) ts2.tech. In its pre-earnings note, TS2.tech noted Goldman Sachs lifted its target to ~$305 and UBS to $321 after Q2’s results ts2.tech. Some aggressive bull-case models even foresee GE reaching as high as $666 by 2030 ts2.tech under ideal conditions. However, concerns remain: the stock trades at a lofty ~36–40× forward EPS ts2.tech, so any delivery hiccup, tariff cost (GE warns of ~$500M headwind in 2025) or macro shock could trigger profit-taking.
- Aviation & defense tailwinds: Experts point out the broader aerospace recovery underpins GE’s strength. Global air travel is surging (+12% passenger kilometers in 2024 vs 2023 ainvest.com), and airlines are keeping older jets flying longer, boosting lucrative engine maintenance contracts. Defense budgets are also at record highs (~$2.4 trillion in 2024 ainvest.com), benefiting GE’s military engines business. CEO Culp emphasizes that “demand isn’t our challenge” – orders far outstrip capacity ts2.tech. GE is ramping engine output and investing in durability (e.g. dust-ingestion testing on the new GE9X and its next-gen adaptive-cycle XA100 engine) to capitalize on this surge marketscreener.com marketscreener.com.
- Risks and valuation: Despite the upbeat view, some analysts urge caution. GE’s high valuation and rich backlog mean the bar is steep: any slowdown in airline capex, renewed supply-chain snags or tariff battles could temper growth. TS2.tech notes that even “bear” forecasts leave GE in the mid-$200s in the near term ts2.tech. Investors will watch upcoming guidance closely – a conservative tone could stall the rally – but for now, the stock rides a strong uptrend on robust jet-engine demand ts2.tech ts2.tech.
Sources: GE Aerospace press release marketscreener.com marketscreener.com; Reuters, Bloomberg and TS2 analysis reuters.com reuters.com ts2.tech; market data and analyst reports ainvest.com seekingalpha.com ts2.tech ts2.tech (see cited links). The information is current as of Oct. 21, 2025.
