BAE Systems expects 7-9% sales growth in 2026 amid rising global defense spending.

BAE Systems reported strong early 2026 trading and maintained its full-year forecast, expecting sales to grow 7-9% from £30.7 billion in 2025. The company anticipates underlying EBIT and earnings per share to rise 9-11%, with free cash flow exceeding £1.3 billion. Increased global defense spending supports growth opportunities across its portfolio, including space systems, missiles, drones, and naval upgrades. Recent contracts include a £2.5 billion deal for Türkiye's Eurofighter Typhoon fleet and over £1 billion in European missile orders. BAE plans to continue investing, paying dividends, and buying back shares, having completed £930 million of a £1.5 billion buyback program.