GE Aerospace Could Raise 2026 Guidance by $500 Million, RBC Says Ahead of Earnings

GE Aerospace (NYSE: GE ) received a price target increase from RBC Capital Markets analyst Ken Herbert on Tuesday.

The firm maintained its Outperform rating on the stock and raised its price target to $400 from $355, ahead of the company’s second-quarter 2026 financial results scheduled for Thursday. • GE Aerospace stock is trading at elevated levels.

Where are GE shares going? Analysts expect the company to report earnings of $1.85 per share on $11.79 billion in quarterly revenue, according to Pro.

The stock also carries a consensus price forecast of $297.65, based on ratings from 27 analysts.

Read Also: These 10 Stocks Rallied as Producer Inflation Plunged: Here's Why Guidance Increase Anticipated on Service Growth RBC Capital Markets expects GE Aerospace to raise its full-year 2026 adjusted earnings before interest and taxes guidance by approximately $500 million, matching historical outperformance trends where the company beat its initial guidance by 16% in 2024 and 13% in 2025.

Herbert noted that capacity constraints, legacy engine usage and strong airline demand protect aftermarket engine spending.

RBC models 19% services growth for the second quarter and 18% for the full year.

Near-Term Catalyst Potential Diminished by 2027 Concerns The report indicates that the upcoming second-quarter results may not serve as a positive catalyst for the stock, as market expectations already factor in the strong performance and guidance lift.

RBC Capital Markets notes that investor attention is shifting toward 2027, where tougher year-over-year comparisons and a projected deceleration in services growth could create headwinds for investor sentiment.

Supply Chain Tightness Extends Turn-Around Times RBC Capital Markets reported that while material flow has improved, turnaround times at maintenance facilities remain well above historical averages. “LEAP deliveries remain on track for ~2,100,” Herbert stated, but emphasized that the broader aerospace supply chain remains tight, leaving a slim margin for error despite on-track deliveries for new engines.

Geopolitical Headwinds Offset by Structural Protections The firm noted the stock has risen 3% since March 1, recovering from the initial downturn tied to the Iran war.

Elevated crude oil prices, which sit at approximately $85 per barrel after peaking in May, have not reduced passenger travel enough to impact aftermarket spending.

RBC Capital Markets stated that the $400 price forecast reflects 39 times its fiscal year 2028 free cash flow estimate of $10.5 billion.

GE Stock Price Activity: GE Aerospace shares were up 0.83% at $356.68 at the time of publication on Wednesday, according to Pro data.

Read Also: Producer Inflation Drops by 0.3% in June, Backing the Case for a Fed on Hold Photo by Jonathan Weiss via Shutterstock