Will GE's (GE) Upbeat Earnings and Raised Outlook Redefine Its Aerospace and Energy Growth Story?

• General Electric reported third-quarter 2025 earnings that surpassed expectations, including revenue of US$12.18 billion and net income of US$2.16 billion, while also raising full-year guidance for profit, revenue, and cash flow across its aerospace and energy divisions.
• A unique driver was the significant boost in aftermarket and defense engine demand, supported by continued share repurchases and a substantial new power generation contract in the Middle East.
• We'll examine how GE's raised full-year outlook on higher aerospace and energy profits impacts its investment narrative and growth assumptions.

Find companies with promising cash flow potential yet trading below their fair value.

General Electric Investment Narrative Recap

To be a GE shareholder right now means believing in the company's ability to drive profitable growth through its focus on commercial aviation and defense, while managing the volatility that comes from a more concentrated, less diversified business model. The latest earnings beat and raised full-year guidance provide strong evidence for the near-term catalyst of higher aerospace profits, yet the heavy dependence on commercial demand and narrow-body engine programs remains the most important risk for the business, a risk that this news, while positive, does not materially lessen.

Among the recent developments, the 3 GW Al-Faw power plant contract in Iraq stands out. This major deal extends GE's participation in the global energy transition and could provide incremental support to energy services revenue, complementing the aerospace tailwinds, and in turn reinforcing GE’s raised outlook, even as broader questions about the company’s ability to offset cyclical aviation downturns linger.

In contrast, what many investors might overlook is GE’s relative vulnerability to any prolonged air travel slowdown and the outsized impact that could have...

Read the full narrative on General Electric (it's free!)

General Electric's narrative projects $50.8 billion in revenue and $9.5 billion in earnings by 2028. This requires 6.9% yearly revenue growth and an increase of $1.9 billion in earnings from the current $7.6 billion.

Uncover how General Electric's forecasts yield a $327.29 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate GE's fair value to range from US$190 to US$340.29, across 13 opinions. While optimism about next-generation engine programs runs high, this spread shows just how much future industry growth assumptions shape expectations for GE’s long-term performance.

Explore 13 other fair value estimates on General Electric - why the stock might be worth 38% less than the current price!

Build Your Own General Electric Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your General Electric research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free General Electric research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate General Electric's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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