Analyst Ratings January 23, 2026

GE Aerospace Shares Decline Despite Robust Q4 Earnings and Positive Analyst Outlook

Strong fourth-quarter 2025 results overshadowed by stock price drop amid investor reservations

By Leila Farooq GE
GE Aerospace Shares Decline Despite Robust Q4 Earnings and Positive Analyst Outlook
GE

GE Aerospace reported adjusted EPS of $1.57 and revenue of $11.87 billion for Q4 2025, outperforming analyst forecasts and demonstrating significant year-over-year growth in its Commercial Engine Services unit. However, the stock fell about 7% following the announcement, with analyst RBC Capital maintaining an Outperform rating and $355 price target, interpreting the dip as a buying opportunity. Investor uncertainty appears influenced by concerns over near-term EBIT growth and lack of updated long-term guidance.

Key Points

  • GE Aerospace reported adjusted EPS of $1.57, exceeding the consensus estimate of $1.43 for Q4 2025.
  • The Commercial Engine Services segment grew 31% year-over-year, driving overall revenue growth of 18.48% over the past twelve months.
  • RBC Capital maintained an Outperform rating with a $355 price target, viewing the stock's price decline as a buying opportunity.

Shares of GE Aerospace (NYSE: GE) dropped approximately 7% to $295 despite the company posting strong fourth-quarter 2025 earnings that surpassed Wall Street expectations. The decline follows recent weakness, with data indicating a 9.26% reduction in the stock price over the past week.

The aerospace manufacturer delivered adjusted earnings per share (EPS) of $1.57 for the quarter, exceeding the $1.43 projected by analysts and the estimate published by RBC Capital. Revenue came in at $11.87 billion, also beating the anticipated $11.2 billion figure. A notable driver of this financial outperformance was the Commercial Engine Services (CES) segment, which experienced an impressive 31% year-over-year growth.

This strong quarterly result contributes to an ongoing positive trend for GE Aerospace, which has achieved an 18.48% revenue increase over the last twelve months. The company's momentum was recognized by RBC Capital, which reaffirmed its Outperform rating and sustained its price target of $355 per share. The investment firm characterized the recent share price depreciation as an appealing entry point for investors.

Looking ahead, GE Aerospace issued its 2026 guidance consistent with consensus estimates, anticipating mid-to-high teens growth on a year-over-year basis within its CES division. This projection exceeds analyst expectations, which had forecasted low double-digit growth for the sector.

Nonetheless, RBC Capital suggested that the market's tepid reaction may stem from investor apprehensions regarding the pace of EBIT growth projected for the first quarter of 2026, as well as the absence of updated long-term forecasts extending to 2028.

Despite the mixed market response, GE Aerospace's fourth-quarter earnings underscore the company’s capacity to outpace earnings and revenue expectations, reflecting strong operational performance in a competitive aerospace sector.

Risks

  • Investor concerns about EBIT growth in the first quarter of 2026 might pressure the stock price further.
  • Absence of updated long-term guidance for 2028 creates uncertainty for investors regarding future growth trajectory.
  • Stock price volatility despite strong earnings could indicate sensitivity to broader market conditions impacting the aerospace sector.

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