GE Aerospace GE is poised to gain from strength in its Defense & Propulsion Technologies segment. In third-quarter 2026, revenues from the segment increased 7% year over year to $3.47 billion and orders grew 18%. The company’s defense & systems business’ revenues grew 5% year over year and engine deliveries within the business increased 4%. In the same period, propulsion & additive technologies business’ revenues surged 10%. Revenue growth was driven by strong demand for GE’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense market.
It is worth noting that in the first nine months of 2026, the company secured a contract from Naval Air Systems Command (NAVAIR) to supply T408-GE-400 engines for the U.S. Marine Corps’ Sikorsky CH-53K King Stallion helicopters. GE secured a five-year contract to provide ongoing support for F414 engines powering the U.S. Navy's F/A-18 and EA-18G aircraft fleet.
It also secured a contract from Turkish Aerospace Industries (“TAI”) to continue integrating its F404 engine into Türkiye's Hurjet jet trainer. The company also clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet in the same period.
Rising U.S. & international defense budgets and heightened geopolitical tensions, along with growing demand for military propulsion systems and aftermarket services, are expected to bode well for the Defense & Propulsion Technologies segment in the quarters ahead. For 2026, the company expects adjusted revenues to increase in low double digits within the Defense & Propulsion Technologies segment.
GE's Peers in the Defense Market
Among its major peers, Textron Inc. TXT enjoys solid demand for its defense products as well. In the second quarter of 2026, revenues from Textron’s Bell segment increased 6% year over year, driven largely by higher H-1 and MV-75 volume and an increase in commercial helicopter deliveries. Textron Systems revenues increased 7% on armored vehicles and ATAC services.
Another peer of GE, RTX Corporation RTX, is witnessing solid bookings and backlog levels. RTX’s strong backlog supports a positive outlook for revenue growth in its defense business, which is expected to strengthen profits over the long term. RTX secured more than $81 billion in new commercial and defense awards during the third quarter of 2026. Its total backlog reached a record $340 billion, comprising $164 billion of defense orders, providing strong visibility into future production requirements.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have gained 3.1% in the past six months against the industry’s 8.9% decline.
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From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 33.22X, above the industry’s average of 27.35X. GE Aerospace carries a Value Score of D.
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The Zacks Consensus Estimate for GE’s 2026 earnings has gone up 1.9% over the past 60 days.
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The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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