New York, Jan 28, 2026, 12:24 PM ET — Regular session
- GE shares dipped midday following Boeing’s warning about a possible durability problem with 777X engines.
- GE this week announced it reached a key milestone in ground-testing a NASA-backed hybrid-electric turbofan.
- All eyes are on the Federal Reserve’s policy decision set for later Wednesday.
GE Aerospace (GE.N) shares dropped 1.7%, hitting $292.35 in midmorning New York trading Wednesday. The move came after Boeing flagged a possible durability problem with the GE engines on its 777X widebody. Boeing CEO Kelly Ortberg, however, said the glitch isn’t expected to push back first deliveries, still planned for 2027. (Reuters)
For GE, the 777X isn’t a volume play like single-aisle jets. Still, it’s a flagship program with a spotlighted engine, and any glitches quickly grab attention in markets already sensitive to reliability news.
Timing is crucial. Investors want to figure out how much of GE’s earnings come from steady service work versus gains tied to more efficient production at planemakers.
On Monday, GE Aerospace announced it had successfully demonstrated power transfer, extraction, and injection in a high-bypass turbofan during a ground test of a modified Passport engine as part of a NASA project. “Our latest milestone successfully demonstrated a narrowbody hybrid electric engine architecture that doesn’t require energy storage to operate,” said Arjan Hegeman, the company’s vice president of future of flight. (GE Aerospace)
Hybrid-electric propulsion mixes traditional jet thrust with electric motor-generators that either boost power or draw it from the engine. It’s still several years from hitting commercial skies and faces significant cost and certification challenges.
The hybrid-electric project is part of CFM International’s RISE technology program, targeting the next wave of single-aisle engines. Rivals Pratt & Whitney, under RTX, and Honeywell have also secured NASA HyTEC development contracts, FlightGlobal reported. (Flight Global)
Analysts remain mostly bullish despite the stock pulling back from recent peaks. JPMorgan bumped its December 2026 price target to $335 from $325, maintaining an “overweight” rating. The firm anticipates steady growth and strong cash flow over the coming years, pricing the stock at 40 times its 2027 earnings forecast. Currently, GE trades near 37 times earnings, the note added, highlighting the price-to-earnings ratio as a key valuation metric. (Investing)
The S&P 500 nudged past 7,000 for a moment on Wednesday but pulled back quickly, as traders weighed Fed moves and a slew of major tech earnings. Broader markets showed little strength. (Reuters)
GE’s latest quarterly report set a tough standard. On Jan. 22, the company projected adjusted EPS for 2026 between $7.10 and $7.40, slightly above the $7.11 predicted by analysts. It also forecasted low double-digit revenue growth, driven by airlines relying more on maintenance as aircraft deliveries remain limited. Over 70% of its commercial engine revenue stems from the “aftermarket” — parts and services that cover repairs and upkeep of engines already in operation. (Reuters)
But the downside risks linger. Airlines continue to gripe about soaring maintenance costs and lengthy repair delays amid shortages of engines and spare parts. GE’s CEO fired back, arguing that current pricing mirrors the hefty investments and risks the company is shouldering. (Reuters)
Investors are eyeing the Fed’s decision and Chair Jerome Powell’s remarks later Wednesday for clues on industrials’ valuations. For GE Aerospace, fresh details on the 777X inspection — or any indication the problem is more widespread than initially thought — could trigger the next big move in the stock. (Reuters)
