Why FTAI Aviation Stock Jumped 36.7% in 2025 and Can Fly Higher in 2026

Gaining significant altitude in 2024 when it climbed 210%, shares of FTAI Aviation (NASDAQ: FTAI) maintained the same upward trajectory last year. According to data provided by S&P Global Market Intelligence, FTAI Aviation stock rose 36.7% in 2025, outperforming the S&P 500, which climbed 16.4%.

In addition to the company announcing strong quarterly financial results, investors sent the stock higher after analysts issued bullish price targets for the aircraft manufacturer's stock.

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FTAI Aviation stock started heating up in August

Failing to keep pace with the S&P 500 for the first half of 2025, shares of FTAI Aviation had plummeted 20.1% through the first six months of the year while the S&P 500 jumped 5.5%. In late July, however, FTAI Aviation reported second-quarter 2025 financial results, and the market took notice.

Exceeding the $542.6 million analysts had anticipated, FTAI Aviation posted Q2 2025 sales of $676.2 million. Similarly, the company provided a surprise at the bottom of the income statement, reporting $1.57 in earnings per share (EPS). Analysts had expected the company would post Q2 2025 EPS of $1.26. The day after the company reported Q2 2025 financial results, shares closed more than 26% higher than the previous day's close.

With analysts consistently hiking their price targets on FTAI Aviation stock after the company reported Q2 2025 financial results, investors steadily bid shares higher. In early August, for example, Citizens JMP boosted its price target on FTAI Aviation stock to $205 from $180. Days later, BTIG raised its price target to $230, up from $190.

As 2025 wound down, investors found one last reason to send FTAI stock higher. The company announced the formation of a new platform, FTAI Power. By converting its CFM56 engines, the company will provide FTAI Power as a power solution for data centers. According to the company, FTAI Power "will provide the market with a 25-megawatt unit that offers grid operators greater flexibility and finer output control than larger units."

FTAI Aviation stock can ascend even higher in 2026

Already, FTAI Aviation stock is off to a flying start in 2026. As of this writing, shares are up 39.4% year-to-date. The aerospace stock can continue this upward trajectory if the company starts to show that the FTAI Power platform is gaining traction among customers. If FTAI Aviation proves that there's strong demand among data center operators for its innovative power option, investors should reward the stock, recognizing the new revenue potential -- especially as artificial intelligence computing is expected to continue requiring data centers to shore up their power supplies.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.