Shares of GE Aerospace climbed to record highs on Tuesday after the jet-engine manufacturer reported third-quarter earnings and revenue that far exceeded Wall Street expectations.
The company also raised its full-year guidance for the second consecutive quarter, driven by surging demand for commercial engines and defense products.
The stock rose as much as 2.4% in premarket trading, putting it on track to open above its previous record close of $305.63 set on September 23.
The gains extend what has already been a remarkable year for the company, whose shares have surged nearly 80% in 2025.
GE Aerospace, which became an independent company following its spin-off from GE Vernova in 2024, has beaten analysts’ expectations every quarter since its separation.
Profit and revenue surpass expectations
The company reported adjusted earnings per share of $1.66 for the third quarter on revenue of $11.3 billion, beating Wall Street estimates of $1.46 per share and $10.4 billion in revenue, according to FactSet.
That represents a strong year-over-year performance compared with the same period in 2024, when GE earned $1.15 per share on revenue of $8.9 billion.
Revenue from GE Aerospace’s commercial engines and services division surged 27% to $8.9 billion, supported by sustained global demand for air travel and new aircraft deliveries.
New engine orders exceeded $10.3 billion, while operating profit margins improved to 27.4%, up 1.7 percentage points from a year earlier.
Defense-related sales also rose sharply, up 26% year over year, as the company continued to expand its backlog and secure new contracts with governments and military suppliers.
Full-year forecast lifted amid sustained growth
Encouraged by robust third-quarter performance, GE Aerospace raised its full-year 2025 earnings guidance to a range of $6 to $6.20 per share, up from its previous estimate of $5.60 to $5.80.
The company also raised its free cash flow projection to $7.1 billion from $6.7 billion, signaling strong operational efficiency and continued growth momentum.
The improved forecast marks the company’s best annual earnings outlook in eight years.
Analysts said the upbeat results underscored GE Aerospace’s success in capitalizing on a global rebound in aviation and its growing role in defense technology.
Valuation debate emerges amid rapid gains
While investors welcomed the strong results, some analysts pointed to the stock’s steep valuation.
GE Aerospace now trades at about 44 times estimated 2026 earnings, significantly higher than peers such as RTX, which trades at roughly 24 times.
In a recent report, Vertical Research Partners analyst Rob Stallard wrote that improved performance has created “the valuation conundrum. “
“There are cheaper aero alternatives, particularly in Europe, but our sense is that US investors are not overly concerned with GE’s valuation as long as it continues to generate strong earnings and cash flow growth,” added the analyst.
Stallard rates the shares “Buy” with a price target of $340.
Options markets imply that shares could move by about 5% in either direction following earnings — in line with recent quarterly volatility.
Over the past four quarters, the stock has risen twice and fallen twice after results, with an average move of around 6%.
Despite valuation concerns, GE Aerospace’s continued momentum and raised forecasts suggest the company’s transformation into a high-performing aerospace pure play is resonating with investors.
As commercial travel rebounds and defense demand strengthens, GE’s leadership appears confident that its growth trajectory remains firmly on course.
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