London, February 16, 2026, 12:43 GMT — Regular session
QinetiQ Group plc shares rose 1.9% to 500.0 pence by 12:24 GMT, after trading between 492.4 pence and 500.0 pence in London. The FTSE 250-listed defence technology firm last closed at 490.8 pence. (London South East)
The move came as UK defence names drew bids after a BBC report said the government is considering bringing forward the point at which it spends 3% of GDP on defence to the end of the current parliament. Prime Minister Keir Starmer, speaking at the Munich Security Conference, said Britain needed to “go faster” on defence spending, after committing to lift it to 2.5% of GDP by 2027 and keeping a longer-term 3% target. (Reuters)
That matters because order pipelines for contractors are tied to multi-year budgets and the pace of procurement decisions, not just slogans. BAE Systems shares were up 2.7% and Babcock gained 3.1% in the same session, based on delayed LSE.co.uk prices. (London South East)
QinetiQ, meanwhile, disclosed another step in its share buyback programme, where companies repurchase stock and cancel it to reduce the number of shares in circulation. It said it bought 130,000 shares on Feb. 13 at an average 485.7912 pence and plans to cancel them, leaving 528,466,067 shares in issue. (Stockopedia)
The broader tape was steadier than the defence sector, with the FTSE 100 up 0.41% and the FTSE 250 up 0.36% by mid-morning, helped by a rebound in bank stocks. Traders were also eyeing upcoming UK data releases including January inflation and retail sales, and February’s preliminary manufacturing figures. (Reuters)
In a Jan. 20 trading update, QinetiQ kept full-year guidance for about 3% organic revenue growth (excluding acquisitions and currency moves) and an operating margin of around 11%. “With an order backlog of around £5bn and a qualified pipeline of £11bn we have significant long-term visibility,” Chief Executive Steve Wadey said in that statement. (QinetiQ)
QinetiQ sits in the middle of the defence supply chain: testing, training, engineering support and tech that tends to follow government priorities. When budget expectations shift, the market often reprices these names quickly, sometimes well before the contracts show up.
But there is a gap between a spending target and signed work. Programmes slip, procurement can bunch up late in fiscal years, and politics can change the shape of what gets funded.
For now, investors will watch for firmer detail on the spending timetable and any signals that procurement is speeding up rather than just expanding on paper. The buyback can add a backstop, but it rarely carries the stock on its own.
The next scheduled marker is QinetiQ’s full-year results, due on May 21, 2026, according to Investing.com’s earnings calendar. (Investing)
