GE Research Update — September 24, 2026 (Updated)
Updated Thesis
GE Aerospace is a pure-play aviation propulsion franchise that designs and manufactures jet and turboprop engines and integrated systems for commercial, military, business, and general aviation, organized into Commercial Engines & Services and Defense & Propulsion Technologies, with 57,000 employees and a brand portfolio including Avio Aero, Unison, GE Additive, and Dowty Propellers. Business quality is high: TTM gross margin of 35.4%, TTM operating margin of 20.8%, TTM net margin of 17.7%, ROE of 49.0%, and revenue growth of 21.1% with earnings growth of 16.9% in the most recent quarter, supported by an installed engine base that drives decades of high-margin aftermarket service. The stock is not cheap: at $318.24 it trades at 36.87x trailing earnings, 39.4x free cash flow, 27.85x EV/EBITDA, and 6.52x sales, a very_expensive regime versus its own five-year history, and the $338.41 fair value estimate implies only 6.3% upside.
The investment grade as of this refresh is C — average business quality. A-tier business, C-tier valuation with only 6.3% upside to $338.41 fair value.
Key Metrics at a Glance
- Revenue growth: +21.1% year over year
- Net margin: 17.7%
- Fair value upside: +6.3% to our estimate of $338
Current price: $318.24
These figures reflect our most recent data pull and are one input into a multi-factor valuation framework.
Our 12–18 Month Outlook
Quality companies held over a multi-year horizon benefit from compounding fundamentals and the patience to ride through short-term volatility. GE Aerospace remains in our covered universe with a average-quality assessment. We update research when material data changes — earnings revisions, management shifts, or regime changes in valuation — not on every price fluctuation.
Long-term accumulation of quality businesses at fair or better prices is the core of the Patient Accumulator approach. Research updates like this one inform whether to add, hold, or wait for a better zone — not whether to react to short-term price moves.
[View full GE research →](/stocks/GE)