GENERAL ELECTRIC CO (GE)

Price—Loading quote

AI: Overvalued

Price checkThe strong business still offers too little valuation cushion at today’s price.

At $368.68, GE’s market value was about $382.2 billion. The price equals roughly 48 times management’s $7.75 midpoint for 2026 adjusted earnings per share. Guided free cash flow—cash left after running and investing in the business—of $8.9 billion to $9.2 billion provides only a 2.4% cash yield at the midpoint. Those measures exclude some accounting items, but both indicate that substantial future growth is already priced in, supporting an overvalued verdict despite excellent recent results.

Big pictureEngine services are producing durable growth, but aviation remains a cyclical business.

Revenue increased from $38.7 billion in 2024 to $45.9 billion in 2025, while operating cash flow rose from $4.7 billion to $8.5 billion. After $1.3 billion of equipment spending, 2025 produced about $7.3 billion of simple free cash flow. First-half 2026 adjusted revenue then grew 27% and company-defined free cash flow grew 31%. Service demand from installed engines is recurring, but airline traffic, aircraft production, and supply availability remain cyclical; faster low-profit new-engine deliveries also reduced commercial margins by 1.6 percentage points in the latest quarter.

Business strengthManageable debt and fewer shares strengthen the company, though buybacks look expensive.

At June 2026, GE held $9.3 billion of cash against $17.2 billion of debt, leaving $7.8 billion of net debt—less than one year of guided free cash flow. However, current liabilities exceeded current assets by $0.7 billion, and large legacy insurance obligations remain within total liabilities. GE spent $7.6 billion on buybacks in 2025 and another $4.5 billion during 2026’s first half. Shares outstanding fell 2.2% year over year, more than offsetting dilution, but repurchases near 48 times guided earnings offer questionable value.

What could change the storyFaster cash growth could justify the price, while weaker service margins would expose it.

The bull case rests on more than $210 billion of backlog, including over $170 billion of commercial services work, converting into sustained cash growth. A simple expectation test suggests today’s value requires roughly 12% annual free-cash-flow growth for a decade, assuming an 8% required return and 3% perpetual growth; that is an inference, not company guidance. Results above the $9.2 billion 2026 cash target with recovering service margins would strengthen the case. Supply delays, slower flight activity, or continued margin contraction as new-engine deliveries rise would weaken it materially.

$368.68 price considered

AI: News

Guidance raised after strong quarterFaster service growth lifted results and guidance, though the shares fell as expectations stayed demanding.

On July 16, 2026, GE reported second-quarter revenue of $13.3 billion, up 21%, and company-defined free cash flow of $3.0 billion, up 43%. It raised full-year adjusted earnings guidance to $7.65-$7.85 per share and free-cash-flow guidance to $8.9-$9.2 billion. Commercial-service revenue grew 26%, but that segment’s margin fell 1.6 percentage points. Shares closed 4.1% lower that day. The timing suggests concern about high expectations and slower order growth, but does not prove a single cause.

Farnborough commitments expand baseLarge engine commitments should expand the future fleet that generates long-term service revenue.

GE’s July 29 Farnborough recap reported approximately 1,800 engine commitments, including more than 1,000 LEAP engines for IndiGo, up to 300 for BOC Aviation, and 100 for Abra Group. These commitments matter beyond initial engine sales because engines create decades of parts and maintenance demand. GE also reported a durability upgrade expected to roughly double LEAP-1B time between removals. That can improve customer economics and competitiveness, although it may delay some near-term shop visits. No reliable one-day stock reaction can be isolated.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2013	2012	2011	2010	2009	2008	2007
Revenue	$45.85B	$38.70B	$35.35B	$29.14B	$56.47B	$75.83B	$90.22B	$113.54B	$110.97B	$110.17B	$117.39B	$113.25B	$112.59B	$110.06B	$149.57B	$154.40B	$179.77B	$169.96B
Research & development	$1.58B	$1.29B	$1.01B	$808.0M	$1.68B	$2.56B	$3.12B	$3.42B	$5.50B	$5.44B	$5.28B	$5.46B	$4.52B	$4.60B	$3.94B	$3.29B	$3.11B	—
Operating income	—	—	—	—	—	—	—	—	—	—	—	—	$22.89B	$20.65B	$17.25B	$15.61B	$21.85B	$25.61B
EBITDAderived	—	—	—	—	—	—	—	—	—	—	—	—	$33.69B	$31.38B	$27.04B	$26.22B	$33.33B	$35.89B
Net income	$8.70B	$6.56B	$9.48B	$336.0M	−$6.34B	$5.70B	−$4.98B	−$22.36B	−$8.48B	$7.50B	−$6.13B	$13.06B	$13.64B	$14.15B	$11.64B	$11.03B	$17.41B	$22.21B
Basic EPSper diluted share	$8.20	$6.04	$8.44	$0.05	-$6.00	$4.63	-$4.99	-$2.62	-$1.03	$0.76	-$0.62	$1.28	$1.29	$1.24	$1.06	$1.01	$1.72	$2.18
Diluted EPSper diluted share	$8.14	$5.99	$8.36	$0.05	-$6.00	$4.63	-$4.99	-$2.62	-$1.03	$0.75	-$0.61	$1.27	$1.29	$1.23	$1.06	$1.01	$1.72	$2.17

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)34$30.33M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Feb 3, 2026Form 4	Procacci RiccardoSenior Vice President	SellCommon Stock	800	$310.11	$248.1K	15.9K
Feb 2, 2026Form 4	Gowder Amy LSenior Vice President	SellCommon Stock	4.0K	$305.73	$1.22M	16.5K
Jan 30, 2026Form 4	Giglietti Robert M.Vice President	SellCommon Stock	1.0K	$305.16	$318.9K	10.6K
Jan 30, 2026Form 4	Giglietti Robert M.Vice President	SellCommon Stock	2.0K	$305.70	$608.3K	11.6K
Jan 30, 2026Form 4	Stokes RussellSenior Vice President	SellCommon Stock	8.9K	$306.51	$2.73M	150.4K

Review ownership filings at SEC.gov ↗

GENERAL ELECTRIC CO (GE)

Financial charts

Financial statements

Insider buys & sells