Shares of GE Aerospace (NYSE: GE) dropped approximately 7% to $295 despite the company posting strong fourth-quarter 2025 earnings that surpassed Wall Street expectations. The decline follows recent weakness, with data indicating a 9.26% reduction in the stock price over the past week.
The aerospace manufacturer delivered adjusted earnings per share (EPS) of $1.57 for the quarter, exceeding the $1.43 projected by analysts and the estimate published by RBC Capital. Revenue came in at $11.87 billion, also beating the anticipated $11.2 billion figure. A notable driver of this financial outperformance was the Commercial Engine Services (CES) segment, which experienced an impressive 31% year-over-year growth.
This strong quarterly result contributes to an ongoing positive trend for GE Aerospace, which has achieved an 18.48% revenue increase over the last twelve months. The company's momentum was recognized by RBC Capital, which reaffirmed its Outperform rating and sustained its price target of $355 per share. The investment firm characterized the recent share price depreciation as an appealing entry point for investors.
Looking ahead, GE Aerospace issued its 2026 guidance consistent with consensus estimates, anticipating mid-to-high teens growth on a year-over-year basis within its CES division. This projection exceeds analyst expectations, which had forecasted low double-digit growth for the sector.
Nonetheless, RBC Capital suggested that the market's tepid reaction may stem from investor apprehensions regarding the pace of EBIT growth projected for the first quarter of 2026, as well as the absence of updated long-term forecasts extending to 2028.
Despite the mixed market response, GE Aerospace's fourth-quarter earnings underscore the company’s capacity to outpace earnings and revenue expectations, reflecting strong operational performance in a competitive aerospace sector.