GE Aerospace Stock Surged 65%: Here’s Why

GE Aerospace (NYSE:GE) stock has seen a solid performance, rising by over 65% between 4/18/2025 and 10/15/2025. Several factors have driven the surge including a strong operational performance and upbeat outlook. A global rebound in air travel and production delays at Boeing and Airbus have lifted demand for GE’s engines and after-market services. Moreover, a $7 billion share buyback expansion and a dividend hike underscored management’s confidence in cash flows and long-term growth.

Quantitively, the move was mainly influenced by a 42.6% change in the company’s P/E Multiple. Although there is more to this narrative than just statistics, let’s first analyze the stock price fluctuations and their contributing factors.

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Returning to the “change”: The shifts in fundamental factors such as valuation, revenue, and margins come with a story regarding the underlying business and investor sentiment. Below, we have pinpointed key developments that impacted the stock price movement of GE stock. For context: GE delivers advanced industrial solutions worldwide across power, renewable energy, aviation, and healthcare, which encompasses medical imaging, digital healthcare, patient monitoring, diagnostics, and drug discovery technologies.

Here Is Why GE Aerospace Stock Moved

• GE Aerospace announced strong financial results for the second quarter of 2025, surpassing market expectations with notable increases in total revenue (up 21% year-over-year to $11.0 billion), adjusted EPS (up 38% to $1.66), and free cash flow (nearly doubling to $2.1 billion). This motivated the company to elevate its full-year 2025 guidance and its outlook for operating profit and free cash flow through 2028.
• The company locked in significant new engine commitments, including a landmark deal with Qatar Airways for over 400 GE9X and GEnx engines, and a contract with IAG for 32 Boeing 787 aircraft powered by GEnx engines for British Airways. The strong commercial orders contributed to a considerable backlog of about $175 billion by the close of Q2 2025.
• GE Aerospace progressed on strategic initiatives aimed at resolving supply chain constraints and enhancing capacity, leveraging its FLIGHT DECK operating model to enhance supplier material input and minimize LEAP engine test cycle durations. The company also announced an investment of nearly $1 billion in U.S. manufacturing and technology, along with a $30 million multi-year workforce skills training initiative to cater to the demand for advanced manufacturing labor.
• Analyst sentiment was predominantly positive, with multiple firms reiterating “buy” or “outperform” ratings and raising their price targets for GE Aerospace shares following the excellent financial results and updated guidance.
• The U.S. government permitted GE Aerospace to recommence shipments of jet engines to China’s Commercial Aircraft Corporation of China (COMAC), including LEAP-1C engines for the C919 and CF34 engines for the C909 regional jet, which opened new prospects for business growth.

Our Current Assessment Of GE Stock

Opinion: At present, we consider GE stock unattractive. Why is that? Check out the full story. Read Buy or Sell GE Stock to understand the factors driving our current viewpoint.

Risk: Nonetheless, GE is not immune to significant impacts. It plummeted nearly 83% during the Global Financial Crisis and about 78% in the 2018 correction. The Dot-Com bubble erased close to 49%, and the Covid selloff resulted in a 58% drop. Even the recent inflation shock caused a decline of around 46%. Thus, regardless of how robust the setup appears, sharp market downturns can still severely affect this stock.

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