GE Aerospace (GE) has delivered a 29.5% return over the past year, outpacing the S&P 500’s 20.1% gain and easily beating the broader industry’s 4.8% decline.
The jet engine maker also outperformed key rivals, with RTX Corporation (RTX) returning 23.8% and L3Harris Technologies (LHX) posting a modest 3% gain over the same period.
Shares closed at $340.70, trading below the 52-week high of $382.97 but well above the 52-week low of $254.66, reflecting resilient investor confidence.
The stock is trading above both its 50-day and 200-day moving averages, signaling sustained upward momentum and broad price stability across market conditions.
The primary engine of GE’s performance has been its Commercial Engines and Services segment, powered by strong demand for LEAP and GEnx engines amid rising global air traffic and fleet expansion.
In the second quarter of 2026, GE secured a contract from Copa Airlines to deliver up to 120 LEAP-1B engines, further cementing its commercial aviation dominance.
Total engine deliveries grew 31% in the quarter, including a 41% jump in LEAP deliveries, while Commercial Engines and Services revenues and orders climbed 27% and 18% year over year, respectively.
The Defense and Propulsion Technologies segment also contributed meaningfully, with Propulsion and Additive Technologies revenues growing 23%, led by Avio Aero, and Defense and Systems revenues rising 12%.
GE also clinched a deal with Turkish Aerospace to supply F404 engines for the HÜRJET advanced jet trainer program and received a CT7 engine order from Leonardo Helicopters.
Shareholder returns remained a priority, with GE paying $873 million in dividends during the first six months of 2026, up 26.9% year over year, while also repurchasing $4.2 billion in shares.
The company raised its dividend by 30.6% to 36 cents per share in February 2026, reinforcing its commitment to returning capital to investors even as it pursues growth.
However, rising costs are creating headwinds, with cost of sales surging 29.2% to $16.6 billion in the first half of 2026 and selling, general and administrative expenses climbing 16.8% to $2.2 billion.
Research and development expenses also rose 25.3% to $900 million, contributing to a 160 basis point contraction in operating profit margin to 21.8% in the first six months of the year.
Total borrowings reached $19.2 billion exiting the second quarter, comprising $2 billion in short-term borrowings and $17.2 billion in long-term borrowings, adding to the company’s financial risk profile.
GE’s forward 12-month price-to-earnings ratio stands at 41.45X, a noticeable premium over the industry average of 35.19X and well above peers RTX and LHX, which trade at 26.65X and 21.98X, respectively.
The Zacks Consensus Estimate for GE’s 2026 earnings has increased 3.1% to $7.69 per share over the past 60 days, reflecting projected year-over-year growth of 20.7%.
The 2027 consensus estimate rose 2% to $8.81 per share, pointing to continued but moderating earnings growth of 14.6% in the following year.
Analysts carrying a Zacks Rank of 3, or Hold, on the stock suggest current shareholders maintain their positions while new investors await a more attractive entry point before committing capital.
Strong demand fundamentals in both commercial and defense aerospace remain intact, but elevated valuation, rising debt, and cost pressures mean patience may be rewarded for prospective buyers of GE stock.
