GE Aerospace Q4 Earnings Preview: Will Strong Demand Push GE Stock Higher?

Core Viewpoint - GE Aerospace is expected to report strong growth in its fourth quarter 2025 financials, supported by solid demand and operational efficiency, despite recent subdued share performance [1][5]. Financial Performance - For the first nine months of 2025, adjusted revenue increased by 21% year-over-year, with operating margins expanding by 140 basis points, indicating volume growth and operational efficiency [2]. - Adjusted earnings per share surged nearly 46%, showcasing strong operating leverage within the business [2]. - Free cash flow reached $5.9 billion, and the company exited the third quarter with a $175 billion backlog, providing a robust foundation for future revenue growth [2]. Market Sentiment - The ongoing momentum in GE's businesses is expected to contribute to strong growth in Q4, with the stock's 14-day Relative Strength Index (RSI) at 59.55, indicating potential for upward movement if results exceed expectations [3]. - Derivatives markets anticipate a moderate reaction to the earnings release, with options pricing suggesting a post-earnings move of approximately 4.6% in either direction [4]. Business Drivers - GE Aerospace's business is benefiting from a large installed base of aircraft engines, strong demand for aftermarket services, and a steady recovery in engine deliveries, which are expected to support revenue growth and profitability [5]. - Strength is anticipated across major operating segments, particularly in the Commercial Engines & Services business, driven by rising services revenue and improving equipment sales [6]. - Increased demand for servicing and spare parts, as more engines cycle through Maintenance, Repair, and Overhaul facilities, is allowing the company to capitalize on higher volumes and favorable pricing conditions [6].