Defence 16 February 2026 - 24 March 2026

BAE Systems shares fell 1.2% in London on Tuesday, extending Monday's 4.9% drop, despite the company publishing its 2025 annual report with no change to its outlook. The decline tracked a 1.8% fall in Europe's aerospace and defence index, as rising oil prices and Middle East tensions hit risk appetite. BAE stock remains up nearly 35% over the past year.

BAE Systems rose 3.25% to 2,300.5 pence by early Thursday afternoon, outperforming a falling FTSE 100 as defence stocks gained amid renewed Middle East oil shocks. The company completed a key design review for a $1.2 billion U.S. Space Force contract and recently reported a record £83.6 billion order backlog. BAE shares are up nearly 34% in 2026, trading near their 52-week high.

BAE Systems shares rose about 2% in early London trading Monday, crossing back above 2,000 pence after reports Britain may accelerate defence spending. The move followed signals from Prime Minister Keir Starmer and a BBC report on possible faster progress toward a 3% GDP target. Investors await BAE’s full-year results later this week for guidance and cash-return updates.