Wall Street thought GE was dead. The stock’s 83% surge says otherwise
General Electric (GE), one of America’s oldest industrial companies and a major manufacturer of aircraft engines and aerospace systems, emerged as one of the stock market’s standout performers in 2025.
The shares advanced even as trade-war uncertainty and concerns about slowing global growth weighed on investor sentiment, setting GE apart from much of the broader industrial sector.
That outperformance reflects a shift in how investors view the company following its multi-year restructuring, which culminated in 2024 with the transition to GE Aerospace.
Long associated with a sprawling conglomerate structure, GE is now operating as a more focused aerospace and defense business — a change that has begun to show up both in its financial results and its market valuation.
In its fiscal third quarter, GE reported total orders of $12.8 billion, representing a 2% increase from the same period a year earlier.
Revenue climbed 24% year over year to $12.2 billion, while profit rose 33% to $2.5 billion, underscoring both strong demand and improved operating leverage.
Buoyed by those results, the company raised its full-year adjusted revenue growth outlook and increased its free cash flow forecast.
Management cited strength in defense deliveries and growing demand for LEAP engines, which power Boeing and Airbus aircraft, as major contributors to the improved outlook.
The smart money is rallying behind GE
General Electric has drawn growing interest from institutional investors. GE shares closed the year above $308, capping an 83% rally in 2025.
That gain far outpaced the S&P 500 Industrials sector, which returned 18.7% over the same period, and more than doubled the roughly 40% advance seen across the aerospace and defense subsectors, according to data from Fidelity Investments.
Even after the sharp run-up, some market veterans argue the stock still has room to run. Bill Gunderson, president of Gunderson Capital Management and a nationally syndicated stock-market radio host, described GE as a “blue-chip breakout” in a December commentary.
“We remain long in our Premier Growth Portfolio,” Gunderson wrote.
GE is widely viewed as well positioned for continued growth, underpinned by sustained demand across the global aerospace market.
In addition to Boeing and Airbus, its customer base includes major carriers such as United Airlines, Delta Air Lines, and Lufthansa. During the third quarter, the company also secured new business, including engine and services agreements with Korean Air.
Demand has been supported by a rebound in global air travel, airline fleet renewals aimed at improving fuel efficiency, and a growing installed base of GE-powered aircraft that generate recurring service revenue over decades.