GE Aerospace Stock Falls 0.8% with $1.72B in Trades, Placing 58th as Market Responds Variously to Aviation Deals and AI Collaborations

Overview of Market Activity

On February 25, 2026, GE Aerospace (GE) ended the trading session down by 0.80%. Despite this decrease, the stock experienced robust trading, with a turnover of $1.72 billion, placing it 58th in daily trading volume. This outcome indicates a mixed response from investors, who are weighing recent positive news against broader market or industry headwinds.

Main Influencing Factors

A major catalyst for GE’s recent performance was its agreement with United Airlines to supply 300 GEnx engines for new Boeing 787 Dreamliners. This order, which also includes spare engines, will expand United’s fleet of GEnx-powered aircraft to over 200. Announced on February 16, the deal is set to boost GE’s order backlog, increase service-related revenue, and create new opportunities for aftermarket support. With GEnx engines already achieving a 99.98% dispatch reliability and accumulating more than 70 million flight hours, this partnership highlights GE’s engineering excellence and reliability, potentially reinforcing investor trust in its commercial aviation segment.

Another significant development is GE’s partnership with Palantir to implement artificial intelligence solutions for optimizing jet engine performance. This collaboration supports GE’s broader push into data analytics and predictive maintenance, aiming to enhance operational efficiency and service profitability. By embedding AI into engine monitoring and maintenance, GE seeks to minimize downtime and lengthen maintenance intervals, directly benefiting its aftermarket business. This initiative also positions GE at the forefront of digital innovation in aerospace, as the industry increasingly adopts advanced technologies.

In defense, GE, together with Kratos, secured a $12.4 million contract from the U.S. Air Force to develop an engine for expendable Collaborative Combat Aircraft. This project broadens GE’s presence in military propulsion, especially in high-volume, smaller-scale platforms. As part of the Air Force’s modernization efforts, the contract reflects rising demand for advanced propulsion in next-generation defense systems, helping GE diversify its revenue and buffer against fluctuations in commercial aviation.

Optimism around GE was further supported by positive analyst actions and institutional investments. Morgan Stanley began coverage with an Overweight rating and a $425 price target, while Zacks upgraded its outlook to Strong Buy. These endorsements point to growing confidence in GE’s cash flow prospects and recent contract wins. Additional support came from Tableaux LLC’s purchase of 12,044 shares and American Airlines’ long-term commitment to CFM engines, a GE joint venture. However, some analysts warned that high valuations and competition from companies like Pratt & Whitney and Raytheon Technologies could limit future stock gains.

Despite these encouraging factors, the 0.80% drop in GE’s share price signals ongoing investor caution. Contributing factors may include a 17.69% dividend payout ratio and recent insider selling, such as a senior executive reducing their stake by 19.48%. While the dividend remains modest, insider sales may reflect concerns about short-term execution or margin pressures. Additionally, shifting market interest toward AI-focused stocks may have drawn attention away from GE’s aerospace strengths.

Conclusion

GE Aerospace’s recent results illustrate a balance between strong business fundamentals—such as major commercial and defense contracts—and ongoing challenges like valuation concerns and industry competition. The company’s future performance will likely depend on its ability to leverage AI-driven efficiencies and maintain growth in its order backlog.