Airbus stock soared over 7% on Wednesday after the European aerospace giant revealed a €5 billion share buyback program and a new medium-term profitability target, boosting investor confidence in its recovery.
The buyback, to be executed over three years, is seen as a strong signal of management's belief in the company's cash generation. "The positive surprise was the €5 billion three-year share buy-back," commented Deutsche Bank analyst Christophe Menard. Morgan Stanley described the update as "a more bullish update than expected" and reiterated an "overweight" rating with a €227 price target. JP Morgan said Airbus "delivered on all the things we felt were needed for the shares to rally."
Alongside the buyback, Airbus set a 2029 adjusted EBIT target of €12–€13 billion, nearly double last year's €7.13 billion. The commercial aircraft division alone is projected to generate around €10 billion of that total. The company benefits from accelerating deliveries—first-half deliveries rose 15% year-on-year to 351 aircraft—and easing supply-chain constraints. CEO Guillaume Faury noted that while challenges remain, the supply chain is "in a much better place." Airbus reiterated its plan to produce 70-75 A320-family jets per month by end-2027.
The guidance assumes a euro/dollar rate of 1.22 and no further trade disruptions or tariff changes. Airbus also said the outlook does not account for any mergers or acquisitions. Analysts at Jefferies and Citi see additional upside from wide-body demand and defense spending. Barclays maintained a Buy rating with a €220 target, while Goldman Sachs recently lifted its target to €240.
