General Electric (GE) Stock Forecast & Price Target

GE Aerospace is attractive because its nearly 80,000-engine installed base creates a long-duration, high-margin services annuity, with about 70% of revenue coming from services and CFM56 alone estimated at ~20% of revenue and ~40% of EBIT. Strong 2Q26 execution, including adj. EPS of $2.02, adj. EBIT margin of 21.7%, and total services growth of 30%, supports the view that supply-chain improvement, better spare-parts availability, and rising shop-visit demand can sustain growth, while guidance was lifted to $10.65B of adj. EBIT and $9.05B of adj. FCF at the midpoint. The company’s standalone aerospace focus, de-risked balance sheet, and improving free-cash-flow conversion underpin a premium-quality profile, and management’s 2028 outlook for double-digit revenue CAGR and ~$8.5B of FCF appears achievable or conservative.

GE Aerospace is exposed to a fragile demand and supply backdrop, where a slower economic recovery, recession, or shifts in inflation, commodity prices, credit, and currency can pressure results while emerging-market sales add volatility. Its aftermarket model depends on a huge installed base of nearly 80,000 engines, yet narrowbody TATs are still around 95 days versus a 70-day target and widebody TATs are about 130 days versus 90 days, showing supply-chain friction that can delay engine deliveries, services revenue, and margin improvement. Even with LEAP deliveries on track for about 2,100, investors face tougher 2H26 and 2027 comparisons, a possible deceleration in services growth, and a 25x-multiple downside case tied to weaker travel demand and about $8.6B of 2028E FCF.