GE Aerospace Stock Hits Record High on Strong Earnings, Raised Guidance

Jakub Porzycki / NurPhoto via Getty Images Shares of GE Aerospace have soared since the company began spinning off businesses in 2023.

GE Aerospace (GE) stock rose to a record high on Tuesday after the jet engine maker beat earnings estimates and raised its full-year outlook, underscoring strong demand for commercial and military aviation.

GE on Tuesday reported third-quarter adjusted earnings of $1.66 per share, a 44% increase from the same quarter last year. Revenue rose 24% to $12.2 billion. Wall Street analysts were forecasting EPS of $1.47 on total revenue of $10.9 billion, according to estimates compiled by Visible Alpha.

Shares of GE Aerospace popped nearly 5% to trade at $316.53, an all-time high, early Tuesday before paring some gains. The stock was recently trading at about $308.

Why This Is Significant

General Electric was once America's largest company and the longest-standing original member of the Dow Jones Industrial Average, but its size became a burden in the 2000s after a few unsuccessful acquisitions and forays into new businesses. The success of it's split into three businesses has inspired similar moves from fellow industrial conglomerates 3M and Honeywell.

“Flight Deck, our proprietary lean operating model, is guided by a customer-driven approach to continuous improvement, where daily progress compounds to drive meaningful results. We are seeing that materialize this quarter with strong services and engine output for our customers,” said CEO Larry Culp in a press release.

GE Aerospace also raised its full-year guidance across the board. The company now projects revenue growth in the high teens, up from its prior mid-teens forecast. Adjusted EPS is expected to come in between $6 and $6.20, up from a prior range of $5.60 to $5.80.

GE’s quarterly revenue and earnings have risen 60% and 180%, respectively, since the storied conglomerate completed its first of two spin-offs in January 2023.

The streamlined aerospace company’s improved efficiency and profitability have made it a winner on Wall Street. Shares are up about 580% over the past three years, dramatically outperforming competitors RTX (RTX) and Honeywell (HON), up 84% and 15%, respectively.

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