General Electric Co. Reports Strong Third‑Quarter Results and Raises Guidance
General Electric Co. (NYSE: GE) released its third‑quarter earnings on October 21, 2025, beating consensus estimates across key metrics. The company’s performance prompted an upward revision of its full‑year outlook and attracted renewed analyst support.
Q3 Highlights
| Metric | FY 2025 Q3 | Consensus | Result |
|---|---|---|---|
| Revenue | $9.1 bn (≈ +10 %) | $8.8 bn | Exceeded |
| Operating income | $1.4 bn (≈ +12 %) | $1.2 bn | Exceeded |
| Net income | $1.1 bn (≈ +15 %) | $0.9 bn | Exceeded |
| Earnings per share | $3.10 | $2.75 | Exceeded |
The company attributed the outperformance to a robust mix of high‑margin aerospace and defense products, supported by rising defense spending forecasts. The “strength in price and consumer mix” was highlighted by analysts as a key driver of the results.
Guidance Revision
Goldman Sachs updated GE’s full‑year guidance to reflect the Q3 momentum:
- Revenue: $38.5 bn–$39.5 bn (previously $37.5 bn–$38.5 bn)
- Operating income: $4.8 bn–$5.2 bn (previously $4.4 bn–$4.8 bn)
- Net income: $3.6 bn–$4.0 bn (previously $3.2 bn–$3.6 bn)
Analyst Noah Poponak reiterated a Buy rating and raised the price target to $305 from $295.
Strategic Moves in Grid Equipment
In parallel with the earnings announcement, GE Vernova disclosed plans to acquire the remaining 50 % stake in transformer‑maker Prolec GE for $5.28 bn. The transaction will be financed with a mix of cash and debt and is expected to close by mid‑2026, subject to regulatory approval. The move aligns with the growing demand for grid infrastructure driven by artificial intelligence and renewable energy deployment.
Market Context
The U.S. equity market closed mixed on Tuesday, with the Dow Jones Industrial Average posting gains largely fueled by strong earnings in industrials and capital goods. GE’s robust Q3 performance contributed to a broader positive sentiment within the industrial sector. Defense‑related firms such as Lockheed Martin, Raytheon Technologies, and Northrop Grumman also raised 2025 guidance after delivering solid third‑quarter results, reflecting a sector‑wide confidence in defense spending trajectories.
Company Profile
- Sector: Industrials
- Primary Exchange: OTC Bulletin Board (NASDAQ: GE)
- Market Cap: $318.3 bn
- P/E Ratio: 43.04
- Products & Services: Aircraft engines, power generation, water processing, household appliances, medical imaging, financial services, and industrial products.
- Website: www.ge.com
GE’s ability to combine operational improvements with strategic acquisitions positions the company to capitalize on evolving industrial and defense dynamics in the coming years.
