TLDR
- GE Aerospace and Palantir Technologies have revealed a multi-year extension of their ongoing military aviation collaboration
- This agreement focuses on enhancing U.S. Air Force military aircraft readiness through AI-driven tools
- The collaboration first launched in early 2024, initially concentrating on the J85 engine of the Air Force’s T-38 trainer jet
- Palantir’s AI Platform is now implemented throughout GE Aerospace’s broader production ecosystem, encompassing supply chain, maintenance, repair and operations (MRO), and new engine manufacturing
- Analysts from Bernstein and Morgan Stanley maintain optimistic price targets for GE, set at $405 and $425 respectively
GE Aerospace (GE) and Palantir Technologies (PLTR) have extended their multi-year partnership to integrate AI more deeply into U.S. military aviation. This agreement seeks to keep a greater number of aircraft operational and cut down on the manual tasks that hinder military operations.
GE Aerospace, GE
The pair first collaborated in early 2024, launching an initial pilot program for a sustainment process centered on the J85 engine found in the Air Force’s T-38 trainer jets. This pilot provided both GE Aerospace and the Air Force with improved insight into parts demand and supply gaps.
Since that time, the scope has expanded. Palantir’s Artificial Intelligence Platform now operates across specific supply chain functions at GE Aerospace, including fulfillment, sourcing, allocation, maintenance, repair, and customer support.
The objective is clear: forecast failures prior to their occurrence, unblock congested supply chains, and establish a direct feedback loop from the flight line to the supplier.
“By integrating data across the enterprise and applying AI to predict demand and identify constraints earlier, our collaboration with Palantir is helping our customers keep more aircraft available so airmen get the training required to execute on their mission,” said Amy Gowder, president and CEO of Defense and Systems at GE Aerospace.
Mike Gallagher, Palantir’s Head of Defense, echoed this sentiment, noting that the focus is on consolidating data to ensure aircraft availability and support pilot training.
The extended partnership now includes GE Aerospace’s wider production system, with sustainment, MRO operations, and new engine manufacturing all within its purview.
GE Aerospace oversees a global fleet of approximately 50,000 commercial and 30,000 military aircraft engines, employing around 57,000 people across the globe. This vast network of operations stands to gain from enhanced data management.
AI Takes On Repetitive Tasks
A key goal of the Palantir platform is to free up GE’s employees to concentrate on real problem-solving. AI agents take care of manual, repetitive tasks—the type of work that clogs up operations and delays response times.
This represents a practical change in the daily operations of defense manufacturing, rather than just a glamorous technology announcement.
Analyst Outlook Stays Optimistic
Beyond this agreement, GE Aerospace has been garnering attention from Wall Street. Bernstein SocGen Group increased its price target for GE to $405, assigning an Outperform rating and citing anticipated growth in widebody services and engine maintenance visits.
Morgan Stanley started covering GE with an Overweight rating and a $425 price target, highlighting the company’s strong position in the aerospace and defense sectors.
Additionally, the company announced a quarterly dividend of $0.47 per share, to be paid in April 2026.
In a separate development, GE Aerospace won a $12.4 million contract with Kratos Defense & Security Solutions to design an engine for the U.S. Air Force.
The company also intends to invest up to $300 million in Singapore over the next five years, with a focus on enhancing engine repair capabilities through advanced automation and AI, supported by the Singapore Economic Development Board.
