LONDON, March 27, 2026, 13:04 GMT
Rolls-Royce shares extended their retreat on Friday, falling about 2.4% to 1,122 pence by 1301 GMT after a 3.69% drop a day earlier. That leaves the stock about a fifth below the 1,420 pence peak it hit on Feb. 26. 1
That matters now because fresh company news has not been enough to lift the stock in a broader selloff. UK equities were heading for a fourth straight weekly decline on Friday as the Middle East conflict kept oil above $110 a barrel and sharpened worries about inflation and growth. 2
The selling came despite Rolls-Royce saying on Thursday that its Power Systems arm had won one of the largest military orders in its history: around 200 mtu PowerPacks for Germany’s Puma infantry fighting vehicles, with deliveries due from 2028. “This order sends a strong signal of confidence in our technology and our industrial capabilities,” Power Systems CEO Jörg Stratmann said. 3
Friday’s regulatory filing showed the company was still buying back stock, or repurchasing its own shares for cancellation, under the £2.3 billion programme launched last month. Rolls-Royce bought just over 2.25 million shares on March 26, taking the total repurchased since the programme began to 23.9 million at a weighted average 1,237.12 pence. 4
Only a month ago, the market was cheering. On Feb. 26, Rolls-Royce posted 2025 underlying operating profit of £3.46 billion, guided for £4.0 billion-£4.2 billion in 2026 and laid out a £7 billion-£9 billion buyback across 2026-2028, sending the shares to a record high. 5
Recent broker notes remained supportive. Goldman Sachs analyst Sam Burgess kept a Buy rating on March 25 and lifted his target price to 1,400 pence, while RBC analyst Mark Fielding kept a Buy rating and a 1,450 pence target on March 23, according to notes tracked by MarketScreener. 6
Elsewhere in the sector, the demand picture still looks firm. MBDA, owned by Airbus, BAE Systems and Leonardo, said on Thursday it expected output to rise 40% in 2026, and CEO Eric Beranger said “the Iran crisis is… again increasing the need for ramp up”; Britain also said this week that Rolls-Royce would contribute to a new UK-Turkey Typhoon training and support deal alongside BAE, Leonardo and MBDA. 7
But the near-term risk is macro, not operational. BlackRock’s Helen Jewell wrote on Thursday that in a shock, “the positions that have risen the most get sold the most,” and European shares were lower again on Friday, a reminder that market-wide selling can swamp company wins for a while. 8
