0945 GMT - BAE Systems expects sales to grow between 7% and 9% in 2026, a slowdown versus 2025, and this is unlikely to trigger much excitement, Bernstein analysts say. They float concerns over the U.K. defense company's potential underperformance in the U.S. and Europe. BAE is underexposed to continental Europe's defense budgets, the analysts note. BAE's sales guidance for this year could trigger moderate earnings upgrades, while its free cash flow forecast for 2026 is significantly below consensus, Bernstein says. This means that BAE should be able to beat this target again next year, given the current context, the analysts add. Shares are up 3% at 20.89 pounds. (cristina.gallardo@wsj.com)

(END) Dow Jones Newswires

February 18, 2026 04:45 ET (09:45 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.