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.
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.
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. Rolls-Royce
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.
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.
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.
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. Reuters
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. Reuters
