GE Aerospace Tailwinds Shift Higher in 2026-Don't Miss the Setup

GE Aerospace’s (NYSE: GE) January price pullback is a buying opportunity on the way to higher price points because it was a sell-the-news event. The event was solid Q4 results, wider margins, and favorable guidance, with no catalysts for market reversal, affirming an outlook for another solid year in 2026. The takeaway is that GE’s share price may come under pressure in the coming weeks, but is unlikely to remain down in the long term. Details in the report suggest the double-digit earnings forecast is cautious, and that outperformance is likely in 2026.

GE Aerospace’s growth drives robust cash flow, enabling dividends and aggressive share repurchases, which underpin the stock price outlook. The company accelerated repurchase activity in 2025 due to strengthening fundamentals and is expected to continue buying back shares over the long term. As it stands, the company reduced the count by a modest single-digit figure and plans for 2026 are to extend the trend. 

GE Aerospace: Momentum to Carry Into 2026

GE Aerospace had a good quarter despite a sequential slowdown in growth. The $119 billion in adjusted revenue is up more than 20% compared to the prior year and outperformed MarketBeat’s consensus estimate by more than 600 basis points. The strength was driven by both operating segments, with the commercially-focused CES group growing by 24% and the Defense & Propulsion Technologies group by 13%. 

Margin news is another area of strength. The company experienced turbulence, with operating margins contracting by 90 basis points, but the impact was less than feared. Solid execution helped offset the pressures, and share count reduction compounded the bottom-line impact. The net result is $1.57 in adjusted EPS, up 19%, and nearly 1000 bps better than analysts had hoped. 

Looking forward, the strengths are expected to continue and are reflected in the guidance. The company forecasts revenue growth in the low double digits, compared with the 11% consensus, with the midpoint of adjusted EPS more than a dime above consensus. The guidance may be cautious amid tailwinds seen in other defense and aerospace names, driven by increased defense spending. Guidance may also be cautious due to the surge in new orders. GE Aerospace reported a 74% systemwide surge in new orders, with better-than-50% growth in both segments. 

Analysts Trends Align With GE Aerospace’s Price Uptrend

MarketBeat did not track any analyst revisions within the first 24 hours of the guidance update, but numerous comments were issued. The response is favorable, citing earnings and new orders strength, and confidence in the long-term outlook, aligning with the trend in place. That includes a firm Moderate Buy rating and uptrend in the price target. The consensus, as of late January, aligns with the early January highs, but the trends point to a $350 to $380 price range, a 20% gain at the low end. 

While post-release price action is unfavorable, indicating a top near $300, the trend remains bullish. The critical support levels have yet to be tested, and the worst-case scenario is that this market becomes range-bound. The critical support target is near $280, a move below that may lead to a deeper decline. However, a move below $280 is not expected. The more likely scenario is that this stock will move sideways at current levels, within a range near $280 to $300, until a more potent catalyst emerges. 

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The article "GE Aerospace Tailwinds Shift Higher in 2026—Don’t Miss the Setup" first appeared on MarketBeat.