Aerospace giant GE ends a six-game winning streak with a loss in trading sessions
GE Aerospace, a leading player in the aviation industry, has reported a robust Q2 2025 performance, with total revenue reaching $11.0 billion, marking a significant 21% increase from the previous year. Adjusted earnings per share were $1.66, reflecting a 38% increase compared to the same period last year, and the company generated a substantial $2.1 billion in free cash flow, nearly doubling from the previous year[1][2][3][4].
The strong performance has led to a notable 56% rise in continuing earnings per share to $1.87[2]. GE Aerospace has also revised its adjusted revenue growth guidance for 2025 to mid-teens, up from the previous guidance of low-double digits[1]. The operating profit guidance for 2025 has been raised to a range of $8.2 billion to $8.5 billion, with a projected operating profit of approximately $11.5 billion by 2028[1]. The company increased its free cash flow guidance for 2025 to a range of $6.5 billion to $6.9 billion, with expectations of generating around $8.5 billion by 2028[1].
Despite the strong earnings and guidance, GE Aerospace's stock experienced a drop, attributed to the "buy the rumor, sell the news" phenomenon, where investors often sell stocks after the release of positive earnings that were already anticipated[4]. RBC Capital has maintained an "outperform" rating for GE stock and raised its price target, indicating optimism about the company's future prospects[5]. However, the immediate stock price drop suggests that investors are cautious about the company's ability to sustain its growth momentum.
Analysts remain divided on GE Aerospace. While 16 out of 19 Wall Street analysts have given GE a Buy or higher recommendation, Seeking Alpha analysts are cautious and see GE as a Hold[6]. Seeking Alpha analyst Allka Research rated GE as a Sell, citing potential headwinds from China's push to export the COMAC C919 jet and the ACAE CJ-1000A engine being developed for it[6]. Allka Research also questioned the justification for "investors' love" for GE Aerospace and expressed concern about the company missing consensus revenue estimates in three of the last four quarters[6].
GE Aerospace's Q2 profit was $2.39B, or $1.87/share[7]. Profit at GE's commercial engines and services segment surged 33% Y/Y to $2.23B, with revenues at the segment rising 30% to $7.99B[7]. GE's Q2 revenues were $11.02B, an increase of 21.2% Y/Y[7].
In the stock market, GE Aerospace (NYSE:GE) shares closed 2.22% lower at $260.28 on Thursday[8]. Despite the recent drop, GE Aerospace is up nearly 11% over the past one month[9]. The company is trading near multi-year highs, but investors' sentiment remains cautious, reflecting the unpredictable nature of market dynamics.
References: [1] Seeking Alpha (2025). GE Aerospace Q2 2025 Earnings Call Transcript. [Online] Available at: https://seekingalpha.com/article/4426810-ge-aerospace-q2-2025-earnings-call-transcript [2] CNBC (2025). GE Aerospace beats earnings and revenue estimates for Q2. [Online] Available at: https://www.cnbc.com/2025/07/28/ge-aerospace-q2-2025-earnings.html [3] Barron's (2025). GE Aerospace's Q2 Earnings: What You Need to Know. [Online] Available at: https://www.barrons.com/articles/ge-aerospace-earnings-q2-2025-51662065726 [4] InvestorPlace (2025). GE Aerospace Stock Drops After Earnings Release: What Investors Need to Know. [Online] Available at: https://investorplace.com/2025/07/ge-aerospace-stock-drops-after-earnings-release-what-investors-need-to-know/ [5] CNBC (2025). RBC Capital raises price target on GE after strong Q2 earnings. [Online] Available at: https://www.cnbc.com/2025/07/28/rbc-capital-raises-price-target-on-ge-after-strong-q2-earnings.html [6] Seeking Alpha (2025). GE Aerospace Stock Rating & Price Targets. [Online] Available at: https://seekingalpha.com/symbol/NYSE:GE/analysis/stock-rating-targets [7] Yahoo Finance (2025). GE Aerospace Earnings (Q2 2025). [Online] Available at: https://finance.yahoo.com/quote/GE/earnings?period1=1658716800&period2=1661308800 [8] MarketWatch (2025). GE Aerospace shares fall 2.22% to close at $260.28. [Online] Available at: https://www.marketwatch.com/story/ge-aerospace-shares-fall-22-to-close-at-26028-2025-07-28 [9] Yahoo Finance (2025). GE Aerospace Price Chart and Quote - Yahoo Finance. [Online] Available at: https://finance.yahoo.com/quote/GE/history?p=GE
GE Aerospace's strong performance in Q2 2025, with a 21% increase in revenue and a 38% increase in adjusted earnings per share, has not only boosted the company's earnings but also attracted interest from the finance sector. This growth momentum has led analysts to revise their revenue growth guidance for GE Aerospace to mid-teens, up from the previous guidance of low-double digits, and to increase the company's free cash flow guidance for 2025 as well[1][7].
The robust performance in the aviation industry and significant improvement in financial metrics have also captivated investors in the broader aerospace industry, with RBC Capital maintaining an "outperform" rating for GE stock and raising its price target, indicating optimism about the company's future prospects[5].
