GE Aerospace falls 2.7% after recent strong third-quarter results and raised guidance

What happened

GE Aerospace (GE) fell 2.7% on October 23, 2026, in a large, mostly company-specific move after the company reported strong third-quarter results and raised full-year guidance. The stock opened 2.9% below the previous close and closed at $285.64 as trading volume ran 1.4 times its 20-day average. The decline contrasted with a market that fell 0.5% and an Industrials sector median that fell 0.4% on the day.

How big was the move

The drop represented 1.6 times a typical daily move for this stock and was 2.3 percentage points worse than the sector median, indicating an outsized, company-driven reaction. The stock’s market sensitivity is a beta of 1.36, so it tends to move more than the market. In the past five years the stock had 84 sessions with a decline of at least 2.7%; twenty trading days later the median result was a gain of 2.2%, and 54 of 84 were higher.

The technical picture

The stock traded 6.9% below its 20-day moving average and 11.7% below its 50-day moving average while it was 11.6% below its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend despite recent weakness. The Relative Strength Index (14 days) stood at 26, below 30, a level often called oversold, and the share price was 26.5% below the 52-week high.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $52.58 billion, a rise of 19.5% from a year earlier, and diluted earnings per share were $8.66, which rose 15.3% year over year. Gross margin narrowed to 35.2% from 37.8% a year earlier, and operating margin fell to 19.2% from 21.6%. Free-cash-flow margin stood at 15.3% and return on invested capital was 10.4%. The balance sheet showed net debt of 0.8 times EBITDA, and share count over one year decreased by 2.4%.

Valuation metrics were elevated compared with the company’s recent history. The stock traded at 33.0 times trailing earnings, lower than 65% of its own readings over the past five years, with a five-year median of 35.3 times earnings. Price to forward earnings was 36.0 times expected earnings and free-cash-flow yield was 2.5%. PromtFinance scores rank Growth at 69 and Quality at 66, while Value is 35 and Revisions is 91.

Earnings and analyst expectations

GE Aerospace last reported on October 20, 2026, with non-GAAP earnings per share of $2.25 against $2.01 expected, 11.9% above estimates. The company has beaten estimates for 15 consecutive quarters, and its average surprise over the last four reports was 11.6% above estimates. Typical two-day reactions after recent reports resulted in the stock falling 1.1%. Management raised full-year 2026 guidance in the recent report, including targets of $10.9–$11B operating profit, $8.00–$8.10 EPS, and $9.1–$9.4B free cash flow, according to the company report summarized in Seeking Alpha.

Segment commentary showed Defense & Propulsion Technologies recorded 7% revenue growth and 18% order growth, driven by military engine demand and defense contracts, according to Zacks Investment Research. Analysts covering the stock number 35 and the consensus rating is Buy, with 69% of ratings at Buy or Strong Buy. The consensus price target is $409.60, which is 43.4% above the closing price on October 23, 2026.

What to watch

• October 20, 2026: the last earnings report, non-GAAP EPS of $2.25 versus $2.01 expected, 11.9% above estimates
• January 21, 2027: next scheduled earnings report
• Full-year 2026 guidance ranges: $10.9–$11B operating profit, $8.00–$8.10 EPS, $9.1–$9.4B free cash flow
• Short-term technical levels: 20-day average is 6.9% above the stock, RSI at 26 (below 30)