GE Aerospace Set to Report Q3 Earnings: What Lies Ahead for the Stock?

Core Insights - GE Aerospace is set to release its third-quarter 2025 results on October 21, with revenue expectations of $10.34 billion, reflecting a 15.6% increase year-over-year, and earnings per share estimated at $1.46, indicating a 27% growth from the previous year [1][9] Financial Performance - The company has consistently exceeded earnings expectations in the past four quarters, with an average earnings surprise of 16.1%. In the last quarter, earnings of $1.66 per share surpassed the consensus estimate of $1.43 by 16.1% [2] Revenue Drivers - The anticipated strong performance in the third quarter is attributed to GE's robust installed base and increased utilization of engine platforms in both commercial and defense markets. The Commercial Engines & Services segment is expected to generate revenues of $8.25 billion, marking a 17.8% year-over-year growth [3] - The Defense & Propulsion Technologies segment is projected to achieve revenues of $2.52 billion, reflecting a 12.5% increase year-over-year, driven by strong demand for propulsion technologies and aftermarket services amid heightened defense budgets and geopolitical tensions [4] Operational Investments - GE Aerospace has been investing in expanding and upgrading manufacturing facilities, which is expected to enhance operational capacity and meet rising demand from commercial and defense sectors. This focus on operational execution and maintaining a robust backlog is likely to support performance [5] Challenges - The company faces high costs and operating expenses in certain projects, which may impact overall performance. Additionally, supply chain challenges, including raw material availability and labor shortages, particularly in aerospace and defense markets, could affect timely product delivery [6] Earnings Outlook - The earnings model indicates a potential earnings beat for GE, supported by a positive Earnings ESP of +2.01%, with the most accurate estimate at $1.49 per share, higher than the consensus estimate of $1.46. GE currently holds a Zacks Rank of 3 [7][8]