GE Q1 Earnings: Strong Aerospace Momentum, Encouraging Outlook, But Market Eyes Technical Levels
2min read General Electric (GE) delivered a solid first-quarter 2025 report, with results that topped Wall Street expectations on both earnings and revenue. The company posted adjusted earnings per share of $1.49, beating the FactSet consensus of $1.27, while revenue grew nearly 11% year-over-year to $9.94 billion. Core to the beat was another strong quarter from GE Aerospace, which continues to serve as the company’s growth engine. With the stock recovering from its early-April lows and now trading just above the key 200-day moving average near $182, the report and forward guidance will be closely watched as a test of broader market sentiment and risk appetite.
Segment performance was led by GE Aerospace, which generated $9 billion in adjusted revenue. Total company orders were robust at $12.3 billion, up 12% year-over-year, supporting a positive book-to-bill ratio and future revenue visibility. The aerospace division saw strength across both commercial and military end markets, with steady demand for engines and services. The backlog remains healthy, and management noted positive long-term fundamentals driven by increased global travel and replacement demand. Aerospace profitability was also solid, helping to drive overall operating margin improvement for the quarter.
In terms of profitability, GE reported an adjusted operating margin that expanded year-over-year, contributing to the 10% rise in adjusted EPS. While margins benefited from stronger volume, they also reflected productivity gains and lower restructuring expenses. The quarter’s GAAP EPS came in at $2.04, boosted significantly by the accounting impact of Solventum ownership changes. However, the underlying operational trends showed stable and broad-based execution, particularly in cost control and capital deployment.
Management reaffirmed its full-year 2025 adjusted EPS outlook of $5.10 to $5.45, in line with the FactSet consensus of $5.42. Revenue is expected to grow at a low double-digit rate, and free cash flow guidance remains in the $6.3 to $6.8 billion range. Notably, GE included additional detail this quarter on the expected impact of newly announced U.S. and international tariffs. Management said the current EPS outlook assumes some tariff effects net of mitigation actions, but it does not account for further escalation or changes in delivery schedules. While the tone around tariffs was measured, the inclusion of these assumptions underscores GE’s vulnerability to shifts in trade policy given its global supply chain and commercial exposure.
Free cash flow generation came in at $0.5 billion for the quarter, reflecting healthy working capital management and disciplined capital spending. The company continues to prioritize shareholder returns, with plans for increased buybacks and an overall capital allocation strategy that balances reinvestment with returns.
From a stock perspective, GE shares have staged a notable comeback after falling sharply from $214 in late March to a low of $159 on April 7. The decline was largely tied to broader market volatility and concerns around the impact of tariffs and rising geopolitical tensions on multinationals. Since then, the stock has rallied, reclaiming its 200-day moving average—a level that now becomes an important technical support zone. With earnings and guidance reinforcing the company’s growth narrative, GE will serve as a useful test for the market: if shares fail to hold support despite a fundamentally strong print, it may suggest broader risk aversion or diminished investor confidence in industrials amid renewed trade uncertainty.
In summary, GE’s Q1 report offered a mix of strong execution, solid segment performance—particularly in aerospace—and a cautiously confident outlook. The inclusion of tariff sensitivity shows the company is proactively managing macro headwinds. While the business trends are encouraging, the technical reaction in GE stock will provide additional insight into how much risk markets are willing to tolerate as the earnings season unfolds.
