TLDR
- GE Aerospace beat Q4 earnings expectations, reporting $1.57 EPS vs. the $1.43 consensus, with revenue up 17.6% year-over-year to $11.90B
- Bernstein raised its price target to $405, citing stronger widebody services revenue and improving LEAP engine supply chain conditions
- The stock was trading around $346, near its 52-week high of $348.48, following a 72% gain over the past year
- GE raised its quarterly dividend from $0.36 to $0.47 per share, representing a $1.88 annualized yield
- Company insiders sold over 37,000 shares worth $11.4M in the last 90 days, while institutional ownership sits at 74.77%
GE Aerospace stock was trading up around 1.1% on Monday, reaching $346.17 during mid-day trading. That puts it close to its 52-week high of $348.48.
The move comes after a strong stretch for the stock. Over the past year, GE has gained roughly 72%.
Bernstein SocGen Group raised its price target on GE from $374 to $405 on March 3, while keeping an Outperform rating. The firm pointed to higher content and pricing on GEnx and GE90 widebody engines as key drivers.
Bernstein also expects CFM56 shop visits to stay above 2,300 through at least 2030, driven by ongoing capacity constraints and strong demand. That’s a solid baseline for recurring services revenue.
On LEAP engines, Bernstein projects that services revenue will reach CFM56 levels by 2030. Margin expansion is expected through new contract structures, including reset long-term service agreements.
Supply chain conditions for LEAP deliveries are reportedly improving. Airbus confirmed on its Q4 earnings call that CFM is on track to meet engine delivery commitments.
Bernstein’s 2026 EPS estimate comes in at $7.47, slightly above the $7.40 consensus. For 2028, the firm projects EPS of $10.39 versus a consensus of $9.47.
Earnings Beat and Dividend Hike
GE Aerospace reported Q4 earnings of $1.57 EPS, topping the $1.43 analyst consensus by $0.14. Revenue came in at $11.90 billion, beating estimates of $11.27 billion and up 17.6% from a year ago.
The company set FY 2026 guidance at $7.10–$7.40 EPS. Research analysts currently expect full-year EPS of $5.40.
GE also raised its quarterly dividend from $0.36 to $0.47 per share. The dividend will be paid April 27, with a record date of March 9. That puts the annualized dividend at $1.88, a yield of around 0.5%.
Analyst Ratings and Insider Activity
The broader analyst picture is mostly positive. GE currently holds one Strong Buy, 16 Buys, one Hold, and one Sell rating. The average price target sits at $329.29, though Morgan Stanley initiated coverage with an Overweight rating and a $425 target in February.
On the other end, BNP Paribas Exane cut its target from $305 to $290 and kept an Underperform rating.
Insider activity has leaned toward selling. SVP Amy Gowder sold 4,000 shares at $305.73 on February 2, reducing her ownership by 19.48%. VP Robert Giglietti sold 3,035 shares at $305.51 on January 30, a 22.29% reduction. In total, insiders sold 37,398 shares worth roughly $11.45 million in the last 90 days.
Institutional investors own 74.77% of the stock. Vanguard holds the largest position at over 92.7 million shares.
On the business side, GE and Kratos Defense secured a joint $12.4 million contract to design the GEK1500 engine for the U.S. Air Force, intended for unmanned aerial systems and collaborative combat aircraft.
GE also flagged a potential durability issue with a seal on the engine used in Boeing’s 777X aircraft, which may require a redesign and retrofitting during maintenance.
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