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GE Gains From Strength in Defense & Propulsion: Will the Momentum Last?
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Key Takeaways
GE's Defense & Propulsion revenues rose 7% to $3.5 billion in Q3 2026, driven by strong defense market demand.
GE's Defense & Propulsion orders rose 18% in Q3, backed by a solid project pipeline and new defense deals.
GE expects low-double-digit revenue growth in Defense & Propulsion for 2026 amid rising defense budgets.
GE Aerospace (GE - Free Report) is witnessing solid momentum in its Defense & Propulsion Technologies segment. Revenues from the segment increased 7% year over year to $3.5 billion in third-quarter 2026. Within the segment, revenues from the Defense & Systems business increased 5% to $2.3 billion, while revenues from the Propulsion & Additive Technologies business surged 10% to $1.2 billion. The top-line growth was supported by healthy demand for GE’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense market.
Some of the recent contracts secured by the company include a deal from the Republic of Korea Navy to provide 12 LM2500+G4 marine gas turbine engines for its naval destroyer project, KDDX. It also clinched a deal from Defense Innovation Unit (DIU) to work on the development of a hypersonic test bed as part of the HyCAT project. Recently, GE secured orders for eight LM2500 marine gas turbines to power the U.S. Navy’s two Flight III Arleigh Burke-class guided-missile destroyers.
The strong pipeline of projects boosted the Defense & Propulsion Technologies segment’s orders, which increased 18% year over year in the third quarter. The segment’s operating profit grew 8% to $475 million.
Rising U.S. and international defense budgets amid heightened geopolitical tensions set the stage for GE Aerospace, which remains focused on winning more defense contracts. For 2026, GE expects revenues from the Defense & Propulsion Technologies segment to increase in the low-double-digit range.
GE's Peers in the Defense Market
Among its major peers, Howmet Aerospace Inc. (HWM - Free Report) has been witnessing persistent strength in its defense aerospace market. Robust orders for engine spares for the F-35 program and spares for legacy fighters like the F-15 and the F-16 are driving the segment’s results. In the third quarter, revenues from Howmet’s defense aerospace market increased 10% year over year, constituting 15% of the company’s revenues
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 won several notable defense contracts during the first nine months of 2026, which resulted in a record backlog of $340 billion that includes $164 billion of defense projects.
GE's Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research
Shares of GE Aerospace have gained 11.5% in the past six months against the industry’s 11.7% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 36.75X, above the industry’s average of 28.54X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 and 2027 earnings has increased over the past 60 days.
View the Zacks #1 Rank List
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GE Gains From Strength in Defense & Propulsion: Will the Momentum Last?
Key Takeaways
GE Aerospace (GE - Free Report) is witnessing solid momentum in its Defense & Propulsion Technologies segment. Revenues from the segment increased 7% year over year to $3.5 billion in third-quarter 2026. Within the segment, revenues from the Defense & Systems business increased 5% to $2.3 billion, while revenues from the Propulsion & Additive Technologies business surged 10% to $1.2 billion. The top-line growth was supported by healthy demand for GE’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense market.
Some of the recent contracts secured by the company include a deal from the Republic of Korea Navy to provide 12 LM2500+G4 marine gas turbine engines for its naval destroyer project, KDDX. It also clinched a deal from Defense Innovation Unit (DIU) to work on the development of a hypersonic test bed as part of the HyCAT project. Recently, GE secured orders for eight LM2500 marine gas turbines to power the U.S. Navy’s two Flight III Arleigh Burke-class guided-missile destroyers.
The strong pipeline of projects boosted the Defense & Propulsion Technologies segment’s orders, which increased 18% year over year in the third quarter. The segment’s operating profit grew 8% to $475 million.
Rising U.S. and international defense budgets amid heightened geopolitical tensions set the stage for GE Aerospace, which remains focused on winning more defense contracts. For 2026, GE expects revenues from the Defense & Propulsion Technologies segment to increase in the low-double-digit range.
GE's Peers in the Defense Market
Among its major peers, Howmet Aerospace Inc. (HWM - Free Report) has been witnessing persistent strength in its defense aerospace market. Robust orders for engine spares for the F-35 program and spares for legacy fighters like the F-15 and the F-16 are driving the segment’s results. In the third quarter, revenues from Howmet’s defense aerospace market increased 10% year over year, constituting 15% of the company’s revenues
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 won several notable defense contracts during the first nine months of 2026, which resulted in a record backlog of $340 billion that includes $164 billion of defense projects.
GE's Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research
Shares of GE Aerospace have gained 11.5% in the past six months against the industry’s 11.7% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 36.75X, above the industry’s average of 28.54X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 and 2027 earnings has increased over the past 60 days.
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.