GE raised 2026 guidance after 18% revenue growth and 49% order growth. At 37 times earnings, I see 6% upside to $318.50 and rate it hold.
Key points
- $19.0 billion in Q3 orders, up 49% points to backlog cover into 2027.
- $10.9 billion of 2026 operating profit guided lifts the midpoint by $0.3 billion.
- Low double-digit 2027 services growth guided supports revenue despite new engine losses.
The call
Growth is already expected at this price. At $300.75 the stock trades at 37 times 2026 earnings. That level needs 10% revenue growth next year with margins near 20%.
Quarterly revenue with year-end push ($ billions)Source: SEC XBRL company facts through Q3 FY26; Q4 FY26E and Q1 FY27E are my estimates, Oct 20 2026.
Patience still beats chasing at this level. I model $60.3 billion of 2027 revenue on shop visits (engine overhauls) and spare parts strength. That supports $9.10 of earnings ahead for a $318.50 target.
Target moves with the multiple on $9.10 EPSSource: my estimates; 2027 EPS $9.10. Oct 20 2026.
Valuation
| Item | Estimate |
|---|
| Revenue in 2026 | $54.8 billion |
| Revenue in 2027 | $60.3 billion |
| Earnings in 2027 | $9.10 per share |
| Multiple in 2027 | 35 times |
| Target in twelve months | $318.50 per share |
| A 35 times multiple (price paid per dollar of earnings) fits durable services pricing. It sits below the 37 times paid today as new engine mix weighs. The 5.9% gain to target supports a hold. | |
Risks
- Air travel softens and shop demand slips, seen in flat departures and slower spare orders through winter.
- Parts shortages lift repair times and costs, seen in rising delinquency (late shipments) and longer turnaround each quarter.
- Castings deal and engine certification slip, seen in debt terms and approval timetables slipping past mid 2027.
What would change my mind
Faster LEAP output with falling turnaround times and delinquency this winter would support higher services growth and a higher multiple.