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GE vs. RTX: Which Aerospace & Defense Stock has Better Prospects?
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Key Takeaways
GE's commercial engine orders and defense deals continue to drive revenue and order growth.
RTX posted strong aerospace demand, $271B backlog and major defense contract wins.
RTX trades at a lower forward P/E than GE, with both stocks carrying a Zacks Rank of 3.
GE Aerospace (GE - Free Report) and RTX Corporation (RTX - Free Report) are two familiar names operating in the aerospace and defense industry. As rivals, both companies are engaged in producing highly engineered aircraft components for commercial and military aircraft in the United States and internationally.
Both companies have been enjoying significant growth opportunities in the aerospace and defense space on account of the improving air traffic trend and the expansionary U.S. budgetary policy in the past couple of years. Let’s take a closer look at their fundamentals, growth prospects and challenges.
The Case for GE Aerospace
GE Aerospace is benefiting from the higher utilization of engine platforms, driven by strong momentum and growth across commercial & defense aerospace sectors. Solid demand for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is driving the performance of the Commercial Engines & Services business.
In first-quarter 2026, the company received orders for more than 650 commercial engines, including commitments from American Airlines, United Airlines and Delta Airlines. It also entered into a long-term materials agreement to support Ryanair’s fleet of about 2,000 CFM56 and LEAP engines.
Operationally, GE pointed to progress under its FLIGHT DECK lean model, including supplier improvements that contributed to commercial services revenues rising 39% year over year. Total engine deliveries increased 43% from the prior-year quarter, indicating better throughput as the company works through customer demand. The Commercial Engines & Services business’ revenues and orders jumped 34% and 93%, respectively, on a year-over-year basis in the first quarter.
Solid demand for the company’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector is boosting the Defense & Propulsion Technologies business’ performance. In first-quarter 2026, it clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet. In the first quarter, the Defense & Propulsion Technologies business’ revenues increased 19% year over year and orders grew 67%.
It remains focused on rewarding its shareholders handsomely through dividends and share repurchases. In first-quarter 2026, GE paid dividends of $381 million, up 26.2% year over year, to its shareholders. In the same period, it bought back shares for $2.2 billion.
Despite the positives, the company has been dealing with the adverse impacts of the high operating costs and expenses. In the first quarter, its cost of sales surged 32% year over year to $7.9 billion. Also, selling, general and administrative expenses increased 23.7% to $1.08 billion. In the quarter, the company’s operating profit margin contracted 200 basis points to 21.8%. The rising debt level remains another concern. Exiting the first quarter, GE Aerospace’s long-term debt was $18.2 billion.
The Case for RTX Corp.
A steady growth in global commercial air traffic continues to drive RTX, supported by higher commercial OEM and aftermarket sales. In the first quarter of 2026, the company reported 10% organic year-over-year sales growth, fueled by strength across both segments. Collins Aerospace recorded an 5% rise in sales, aided by a 7% increase in commercial aftermarket demand, while Pratt & Whitney’s revenues grew 11%, backed by a 19% jump in aftermarket and a 7% increase in military.
RTX’s management anticipates a sustained recovery in commercial aerospace, supported by continued growth in Revenue Passenger Kilometers (RPK) and strong demand for new aircraft, which is expected to bolster the company’s operating performance in the near term. In the first quarter, the company recorded solid RPK growth despite disruptions in the Middle East.
With a wide range of combat-proven defense products, RTX continues to receive ample orders from the Pentagon and its foreign allies. The company won several notable defense awards during the first quarter of 2026, which resulted in solid bookings of $14 billion and a record backlog of $271 billion.
Among the most notable awards is a $627 million contract to supply Patriot air and missile defense systems to the Netherlands. The company also secured a $6.6 billion contract for the production of F135 engines.
Consequently, RTX witnessed a solid defense backlog of $109 billion as of exiting the first quarter. Based on such solid bookings as well as backlog count, RTX’s management continues to expect both domestic and international program growth to remain robust for its defense business in the quarters ahead.
RTX’s strong liquidity position also adds to its strength. Exiting first-quarter 2026, its cash and cash equivalents totaled $6.82 billion, higher than its current debt of $4.21 billion. This reflects a solid solvency position for the stock, at least over the short term.
However, its high debt profile poses a concern. It exited the first quarter with a long-term debt of $32.97 billion, which remained well above the cash balance.
Price Performance
In the past year, GE Aerospace shares have increased 30.3%, while RTX stock has gained 30.4%.
Image Source: Zacks Investment Research
RTX’s Valuation Attractive Than GE
RTX is trading at a forward 12-month price-to-earnings ratio of 24.46X, above its median of 19.76X over the last three years. GE’s forward earnings multiple sits at 37.92X, higher than its median of 36.48X over the same time frame.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE & RTX
The Zacks Consensus Estimate for GE’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 14.3% and 17.1%, respectively. EPS estimates for both 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 sales and EPS implies year-over-year growth of 5.7% and 9.9%, respectively. The EPS estimates for 2026 and 2027 have increased over the past 60 days.
GE Aerospace’s strong momentum in the commercial and defense aerospace markets, driven by solid build rates, wide-body aircraft demand and robust defense budget, bodes well for growth. However, GE's strength in the markets has been dented by rising operating expenses and high debt, which might affect its margins and profitability.
In contrast, RTX’s robust momentum in commercial and defense aerospace markets, solid backlog level and a healthy liquidity position bode well for strong growth in the quarters ahead. Additionally, RTX’s attractive valuation is more appealing and its upwardly revised estimates instil confidence. Given these factors, RTX seems to be a better pick for investors than GE currently.
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GE vs. RTX: Which Aerospace & Defense Stock has Better Prospects?
Key Takeaways
GE Aerospace (GE - Free Report) and RTX Corporation (RTX - Free Report) are two familiar names operating in the aerospace and defense industry. As rivals, both companies are engaged in producing highly engineered aircraft components for commercial and military aircraft in the United States and internationally.
Both companies have been enjoying significant growth opportunities in the aerospace and defense space on account of the improving air traffic trend and the expansionary U.S. budgetary policy in the past couple of years. Let’s take a closer look at their fundamentals, growth prospects and challenges.
The Case for GE Aerospace
GE Aerospace is benefiting from the higher utilization of engine platforms, driven by strong momentum and growth across commercial & defense aerospace sectors. Solid demand for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is driving the performance of the Commercial Engines & Services business.
In first-quarter 2026, the company received orders for more than 650 commercial engines, including commitments from American Airlines, United Airlines and Delta Airlines. It also entered into a long-term materials agreement to support Ryanair’s fleet of about 2,000 CFM56 and LEAP engines.
Operationally, GE pointed to progress under its FLIGHT DECK lean model, including supplier improvements that contributed to commercial services revenues rising 39% year over year. Total engine deliveries increased 43% from the prior-year quarter, indicating better throughput as the company works through customer demand. The Commercial Engines & Services business’ revenues and orders jumped 34% and 93%, respectively, on a year-over-year basis in the first quarter.
Solid demand for the company’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector is boosting the Defense & Propulsion Technologies business’ performance. In first-quarter 2026, it clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet. In the first quarter, the Defense & Propulsion Technologies business’ revenues increased 19% year over year and orders grew 67%.
It remains focused on rewarding its shareholders handsomely through dividends and share repurchases. In first-quarter 2026, GE paid dividends of $381 million, up 26.2% year over year, to its shareholders. In the same period, it bought back shares for $2.2 billion.
Despite the positives, the company has been dealing with the adverse impacts of the high operating costs and expenses. In the first quarter, its cost of sales surged 32% year over year to $7.9 billion. Also, selling, general and administrative expenses increased 23.7% to $1.08 billion.
In the quarter, the company’s operating profit margin contracted 200 basis points to 21.8%. The rising debt level remains another concern. Exiting the first quarter, GE Aerospace’s long-term debt was $18.2 billion.
The Case for RTX Corp.
A steady growth in global commercial air traffic continues to drive RTX, supported by higher commercial OEM and aftermarket sales. In the first quarter of 2026, the company reported 10% organic year-over-year sales growth, fueled by strength across both segments. Collins Aerospace recorded an 5% rise in sales, aided by a 7% increase in commercial aftermarket demand, while Pratt & Whitney’s revenues grew 11%, backed by a 19% jump in aftermarket and a 7% increase in military.
RTX’s management anticipates a sustained recovery in commercial aerospace, supported by continued growth in Revenue Passenger Kilometers (RPK) and strong demand for new aircraft, which is expected to bolster the company’s operating performance in the near term. In the first quarter, the company recorded solid RPK growth despite disruptions in the Middle East.
With a wide range of combat-proven defense products, RTX continues to receive ample orders from the Pentagon and its foreign allies. The company won several notable defense awards during the first quarter of 2026, which resulted in solid bookings of $14 billion and a record backlog of $271 billion.
Among the most notable awards is a $627 million contract to supply Patriot air and missile defense systems to the Netherlands. The company also secured a $6.6 billion contract for the production of F135 engines.
Consequently, RTX witnessed a solid defense backlog of $109 billion as of exiting the first quarter. Based on such solid bookings as well as backlog count, RTX’s management continues to expect both domestic and international program growth to remain robust for its defense business in the quarters ahead.
RTX’s strong liquidity position also adds to its strength. Exiting first-quarter 2026, its cash and cash equivalents totaled $6.82 billion, higher than its current debt of $4.21 billion. This reflects a solid solvency position for the stock, at least over the short term.
However, its high debt profile poses a concern. It exited the first quarter with a long-term debt of $32.97 billion, which remained well above the cash balance.
Price Performance
In the past year, GE Aerospace shares have increased 30.3%, while RTX stock has gained 30.4%.
Image Source: Zacks Investment Research
RTX’s Valuation Attractive Than GE
RTX is trading at a forward 12-month price-to-earnings ratio of 24.46X, above its median of 19.76X over the last three years. GE’s forward earnings multiple sits at 37.92X, higher than its median of 36.48X over the same time frame.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE & RTX
The Zacks Consensus Estimate for GE’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 14.3% and 17.1%, respectively. EPS estimates for both 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 sales and EPS implies year-over-year growth of 5.7% and 9.9%, respectively. The EPS estimates for 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Conclusion
GE Aerospace and RTX Corp. currently have a Zacks Rank #3 (Hold) each, which makes choosing one stock a difficult task. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GE Aerospace’s strong momentum in the commercial and defense aerospace markets, driven by solid build rates, wide-body aircraft demand and robust defense budget, bodes well for growth. However, GE's strength in the markets has been dented by rising operating expenses and high debt, which might affect its margins and profitability.
In contrast, RTX’s robust momentum in commercial and defense aerospace markets, solid backlog level and a healthy liquidity position bode well for strong growth in the quarters ahead. Additionally, RTX’s attractive valuation is more appealing and its upwardly revised estimates instil confidence. Given these factors, RTX seems to be a better pick for investors than GE currently.