General Electric Co. (NYSE:GE) shares are down Monday as the company recently announced a joint U.S. Air Force contract with Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) valued at $12.4 million.
The contract entails desiging a next-generation engine for small Collaborative Combat Aircraft (CCA).
How GE’s New Engine Redefines Affordability
Announced on Feb. 23, 2026, this initiative focuses on creating the GEK1500 engine, designed to meet high-performance standards while maintaining cost-effectiveness.
Additionally, the GEK1500 engine is set to offer a 1,500-pound thrust capacity, potentially powering unmanned aerial systems, collaborative combat aircraft and missiles.
The design leverages lessons from the GEK800 engine, aiming to enhance thrust, power generation and cost efficiency.
What Contract Means For Future Combat Tech
The Air Force has placed a strong emphasis on engines that balance high performance with low cost, crucial for the capabilities of small CCAs.
The contract includes provisions for assessing key design risks and evaluating engine performance under realistic flight conditions, which could further refine the GEK1500s capabilities.
This collaboration between General Electric and Kratos builds on a 2024 Memorandum of Understanding aimed at developing cost-effective engines for unmanned platforms.
Technical Analysis
The broader market experienced declines on the previous trading day, with the Russell 2000 down 0.60% and the Nasdaq slipping 0.57%. General Electric’s stock movement reflects this trend, indicating that the company is caught in a broader sell-off despite the positive contract news.
The stock is currently trading 0.5% below its 20-day simple moving average (SMA) and 1.2% below its 100-day SMA, suggesting some short-term weakness. Over the past 12 months, shares have increased significantly, and they are currently positioned closer to 52-week highs than lows, indicating a strong longer-term trend.
The RSI is at 50.00, which is considered neutral territory, while the MACD is at 0.10, below its signal line at 0.15, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $344.30
- Key Support: $325.00
Earnings & Analyst Outlook
Looking further out, the next major catalyst for the stock arrives with the April 21, 2026, earnings report.
- EPS Estimate: $1.61 (Up from $1.49)
- Revenue Estimate: $10.65 billion (Up from $9.94 billion)
- Valuation: P/E of 42.6x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $296. Recent analyst moves include:
- JP Morgan: Overweight (Raises target to $335 on Jan. 26)
- UBS: Buy (Raises target to $374 on Jan. 23)
- Citigroup: Buy (Raises target to $380 on Jan. 23)
GE Price Action: General Electric shares were down 1.23% at $338.82 at publication on Monday, according to Benzinga Pro data.
Photo: Shutterstock
