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GE's Defense & Propulsion Strength Seems Firm: More Upside Ahead?
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Key Takeaways
GE's Defense & Propulsion Technologies revenues rose 7% to $3.47 billion in third-quarter 2026.
Defense & systems revenues grew 5%, while propulsion & additive technologies revenues surged 10%.
GE expects low-double-digit adjusted revenue growth in the segment for 2026, supported by defense demand.
GE Aerospace (GE - Free Report) 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 - Free Report) 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 - Free Report) , 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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 earnings has gone up 1.9% over the past 60 days.
View the Zacks #1 Rank List
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GE's Defense & Propulsion Strength Seems Firm: More Upside Ahead?
Key Takeaways
GE Aerospace (GE - Free Report) 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 - Free Report) 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 - Free Report) , 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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 earnings has gone up 1.9% over the past 60 days.
Image Source: Zacks Investment Research
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.