The Topix slumped 3.2% to 3,772.17, the fastest decline since April, while the Nikkei declined 3.1% ‌to close at ⁠56,279.05, ⁠the biggest drop since November last year, after falling as much as 3.4%.

“Ongoing gains in crude oil futures on worsening Middle East tensions, together with a stronger U.S. dollar and weaker yen, are fuelling views that inflation could accelerate,” said Maki Sawada, a strategist at Nomura Securities.

“This uncertainty, seen as potentially impacting future monetary ⁠policy, is ‌weighing on the equity market overall.”

The U.S.-Israeli air war against Iran escalated with no end in sight, ⁠as Israel struck Lebanon in response to Hezbollah attacks and Tehran continued launching missiles and drones at Gulf states hosting U.S. military bases.

Live Events

All 33 industry subindexes on the Tokyo bourse were down, led by a 5.5% fall in the oil and coal sector followed by a 5.4% decline in the transport equipment industry.
Toyota Motor, the world’s largest automaker ‌by sales, dropped 6.1%, the sharpest drop since September 2024, while Japan’s largest airline, ANA Holdings, fell 3.3%. ENEOS Holdings, Japan’s biggest refiner, lost ⁠6.3%, the sharpest drop since April.

The largest percentage decliner, though, had nothing to do with the Middle East tensions.

Sumitomo Pharma tanked 19.1%, the biggest fall in nearly 12 years, as investor concerns over a new share issuance outweighed an upward revision to its full-year net profit forecast for the current fiscal year.

There were 219 decliners on the Nikkei index against six advancers.

Shop price inflation slowed more than expected in February, offering households tentative relief from cost-of-living pressures as retailers stepped up discounting and global food prices eased.

New data from the British Retail Consortium (BRC) and NielsenIQ showed shop prices rose 1.1 per cent year-on-year in February, down from 1.5 per cent in January. The deceleration reflects intensified competition across both food and non-food sectors, with retailers cutting prices to stimulate demand amid weak consumer confidence.

The figures come ahead of the spring statement, when the Office for Budget Responsibility is due to update its outlook on growth and public finances. They add to recent signs that inflationary pressures are moderating, after official data showed UK consumer price inflation fell sharply to 3 per cent in January, moving closer to the Bank of England’s 2 per cent target.

Food prices remain elevated but are increasing at a slower pace. Annual food inflation eased to 3.5 per cent in February from 3.9 per cent the previous month. Fresh food inflation edged lower, while ambient food inflation, covering products such as coffee, pasta, canned goods and other cupboard staples, fell to 2.3 per cent, its lowest level in four years.

The BRC said lower global commodity costs were filtering through supply chains, helping to stabilise grocery prices. However, it emphasised that competitive dynamics were playing a crucial role, particularly in discretionary categories such as fashion, health and beauty.

Prices for non-food items, including clothing, electronics and household goods, declined by 0.1 per cent year-on-year, compared with 0.3 per cent growth in January. Heavy promotional activity in fashion and personal care, coupled with softer demand due to unseasonal weather and fragile sentiment, contributed to the decline.

Helen Dickinson, chief executive of the BRC, described the slowdown as a “welcome relief” but warned that pressures had not disappeared. She noted that while the pace of price rises is moderating, many households continue to feel strain from higher cumulative costs over the past three years.

Mike Watkins, head of retailer and business insight at NielsenIQ, said pricing behaviour had shifted notably since the start of the year. “Competitive pricing across both food and non-food is helping to bring down inflation,” he said, though he cautioned that demand remains unpredictable as shoppers continue to prioritise essentials and trade down to value options.

The easing in shop price inflation follows a mixed economic backdrop. The government recently reported a record £30.4 billion budget surplus in January, driven by strong tax receipts and lower debt interest payments. Retail sales also surprised on the upside. However, unemployment has climbed to a five-year high and economic growth remains sluggish, tempering optimism.

Retailers have also flagged potential future cost pressures. The upcoming implementation of the Employment Rights Act and higher employment costs could increase operating expenses later this year. Industry leaders warn that if secondary legislation raises labour or compliance costs significantly, businesses may be forced to pass some of those increases on to consumers.

For now, the slowdown in shop price inflation suggests that competitive retail markets and easing global input costs are helping to cushion households. Whether that trend continues will depend on energy prices, wage dynamics and the broader economic outlook in the months ahead.

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

In a statement on Monday, the company said it has signed a Memorandum of Understanding (MoU) with Elematic India, an arm of Finland-based Elematic Group, for sourcing of precast concrete technology.

The MoU was signed on February 19, 2026, in the presence of Petteri Orpo, Prime Minister of Finland and also the Ambassador of Finland Kimmo Lahdevirt.

The agreement was formalised between Veshesh Gaur, Director of Gaurs Group, and Chander Dutta, MD of Elematic India and Teppo Voutilainen, CEO of Elematic Oyj, Finland.

Under the agreement, Gaurs Group will invest Rs 100 crore to set up a precast manufacturing plant in Greater Noida.

Live Events

The facility, spread over 5 acre land, will manufacture advanced precast concrete components that would include slabs, columns, beams and walls.
The plant is expected to be operational within six months. Gaurs Group has also placed an advance order to Jindal Elematic, Alwar to supply 45,000 units of modular bathrooms and 10,000 units of kitchen pods for its under-development projects.

The order book is worth Rs 150 crore.

The company intends to integrate technology-led construction practices to improve execution efficiency and reduce project timelines by almost 30 per cent.

Precast construction enables key structural and utility components to be manufactured and assembled off-site in a controlled environment and installed on-site.

Veshesh Gaur said, “Construction technology is becoming increasingly important as the scale and complexity of residential developments continue to grow. Our partnership with Elematic will enable us to integrate advanced precast manufacturing into our construction processes, improving efficiency, quality control and project timelines.”

Gaurs Group is one of the leading real estate developers in Delhi-NCR. It has developed many townships, Group housing and commercial projects.

US technology group Avalara has acquired Manchester-based integration startup Versori in a deal that underscores the growing international appeal of the UK’s regional tech sector.

The value of the transaction has not been disclosed, but it includes Versori’s proprietary technology platform and its 23-strong team. Co-founders Sean Brown and Daniel Jones will remain with the business, which will operate under the name “Versori, by Avalara”.

Founded in 2022, Versori specialises in next-generation integration technology, enabling companies to connect complex systems such as ERPs, ecommerce platforms, marketplaces and financial applications with greater speed and automation. The company raised $10.5 million in prior funding and graduated from the prestigious Y Combinator accelerator programme in March 2023.

Sean Brown said the acquisition aligns closely with Versori’s founding vision.

“We want Versori to connect the world’s systems. That was the mission statement from day one,” he said. “As we were going through a period of growth we were facing doing another investment round, but Avalara were already a customer and the strategic fit was very strong.”

Avalara describes itself as an “agentic” tax and compliance leader, providing automated tax calculation, reporting and compliance solutions to more than 200,000 customers across 75 countries. Its long-term ambition is to embed real-time, always-on compliance into global commerce systems.

Scott McFarlane, chief executive and co-founder of Avalara, said the acquisition would significantly accelerate that ambition.

“Compliance at global scale depends on seamless, reliable integration,” he said. “Versori’s technology and team significantly accelerate our ability to connect into the world’s commerce systems quickly, at scale, using intelligent, AI-driven automation that meets the reliability and accuracy standards global compliance demands.”

The move strengthens Avalara’s unified platform strategy, particularly as regulatory complexity increases worldwide and multinational businesses seek automated, audit-ready compliance solutions embedded directly into transactional workflows.

Versori’s platform uses automation-first architecture to reduce the time and engineering resources required to build and maintain integrations. By leveraging artificial intelligence, the system can simplify deployment and ongoing maintenance, making it attractive to enterprises operating across multiple jurisdictions and platforms.

Since its launch, Versori has worked with high-profile organisations including Frasers Group, Macy’s and the UK Ministry of Defence. Its growth trajectory has made it one of Manchester’s fastest-rising enterprise software startups.

Brown said the acquisition demonstrates that Manchester can produce globally competitive technology businesses.

“It’s proof that Manchester can grow companies like Versori,” he said. “Hopefully it will bring more investment into Manchester and more talent. I’ve never done it for the rewards. I love building things and I’m looking forward to keeping building things with Versori. I’ve got a lot of unfinished business.”

The deal also reflects continued US interest in UK AI and enterprise software firms, particularly those outside London. Manchester’s tech ecosystem has grown rapidly in recent years, supported by university spinouts, venture capital inflows and accelerator programmes.

For Avalara, the acquisition adds advanced AI-enabled integration capabilities at a time when global tax and compliance requirements are becoming increasingly digitised and complex. The company has spent more than two decades building one of the most extensive libraries of tax content and system integrations in the industry. Integrating Versori’s automation technology is expected to enhance speed, scalability and reliability across that network.

Both companies indicated that integration work is already under way, with Versori’s technology forming a key part of Avalara’s push towards AI-native compliance systems that operate continuously and autonomously within global commerce infrastructure.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

Advertisement

Palantir Technologies Inc. (NASDAQ: PLTR), the data analytics and artificial intelligence software firm co-founded by Peter Thiel, has seen its shares rebound sharply in early March 2026 following a post-earnings pullback, fueled by strong analyst upgrades, accelerating AI platform adoption, and fresh government contracts amid heightened geopolitical tensions.

As of March 2, 2026, PLTR shares traded around $142 in pre-market and early sessions, up from a Feb. 27 close of $137.19 (+0.92% that day) on volume exceeding 50 million shares in recent sessions. The stock has fluctuated between roughly $133 and $143 intraday, with a 52-week range of $66.12 to $207.52 (hit in November 2025). Market capitalization hovers near $328 billion, reflecting a forward P/E ratio over 200 amid explosive growth expectations.

The momentum builds on Palantir’s blockbuster fourth-quarter and full-year 2025 earnings released Feb. 2, 2026. Revenue soared 70% year-over-year to $1.407 billion in Q4 — the highest growth rate as a public company — surpassing estimates of about $1.33 billion to $1.34 billion. Adjusted EPS reached $0.25, beating consensus of $0.23. Full-year 2025 revenue climbed 56% to $4.475 billion, with U.S. commercial revenue surging 109% to $1.47 billion and U.S. government up 55% to $1.85 billion.

CEO Alex Karp hailed the results as “historic” and “iconic,” crediting demand for the Artificial Intelligence Platform (AIP) and Foundry for enterprise and government operational AI. U.S. commercial revenue jumped 137% in Q4 to $507 million, while total U.S. revenue hit $1.076 billion (+93%). The company closed deals including 180 worth at least $1 million, 84 at $5 million-plus, and 61 exceeding $10 million — record figures.

Guidance reinforced the bullish case: Q1 2026 revenue projected at $1.532 billion to $1.536 billion (well above estimates), with full-year 2026 revenue eyed at $7.182 billion to $7.198 billion — implying 61% growth. U.S. commercial revenue is forecast to exceed $3.144 billion (+115% at minimum). Adjusted operating income targets $4.126 billion to $4.142 billion, with adjusted free cash flow between $3.925 billion and $4.125 billion. Palantir expects GAAP profitability each quarter in 2026.

Wall Street has responded enthusiastically. UBS upgraded PLTR to Buy from Neutral in late February, citing 70% revenue growth potential in 2026 despite AI market volatility. Rosenblatt initiated coverage with a Buy, calling Palantir a “unique company” at an “attractive entry point.” Consensus leans Buy, with median price targets around $196 (43% upside from $137 levels), and highs reaching $260. Recent revisions lifted 2026 EPS estimates significantly, with some projecting $1.31 for 2026 and $1.83 for 2027.

Recent developments bolster the outlook. In mid-February 2026, Palantir partnered with Rackspace Technology to deploy Foundry and AIP in production environments with governed operations, accelerating enterprise AI adoption in regulated sectors. A five-year blanket purchase agreement with the Department of Homeland Security (DHS), valued up to $1 billion, streamlines AI and analytics platform access across agencies like Customs and Border Protection and ICE.

Other wins include extended collaborations with Airbus for aviation data platforms, DISA authorization for on-premises and edge deployments, and sovereign AI infrastructure projects with Accenture in EMEA. Geopolitical events, including U.S.-Iran military actions, have spotlighted Palantir’s defense moat via platforms like Gotham and Maven, used in intelligence and battlefield operations.

Profitability metrics shine: Q4 adjusted operating margin hit 57%, full-year adjusted free cash flow margin 51%, with $7.2 billion in cash reserves. The Rule of 40 score reached 127% in Q4, blending growth and margins exceptionally.

Challenges remain. The stock dipped 34% from its 2025 peak amid valuation concerns and broader AI sector volatility. Critics point to high P/E ratios, reliance on government contracts (potentially politically sensitive), and competition from Snowflake, Databricks, and cloud giants. International growth lagged at 8% in recent quarters, though commercial traction improves.

Analysts argue the pullback creates opportunity, with AIP’s bootcamps driving faster deployments and customer counts up 34%. Options sentiment has been mixed but tilted bullish on dips.

Next earnings arrive around May 4-11, 2026, for Q1. Investors will track AIP momentum, commercial deal flow, and any new defense or enterprise wins amid global uncertainties.

Palantir’s 2026 narrative centers on transforming from government specialist to AI powerhouse, leveraging AIP for explosive U.S. commercial gains while securing strategic federal footholds. With guidance crushing expectations and analysts turning bullish, PLTR trades as a high-conviction AI play — volatile, but backed by accelerating fundamentals.

Lockheed Martin Corp. shares climbed sharply in recent trading, reflecting heightened investor confidence in the defense sector amid ongoing global conflicts and robust U.S. military spending priorities.

The aerospace and defense giant’s stock (NYSE: LMT) closed at $658.08 on Feb. 27, up $16.45 or 2.56% from the previous session, with pre-market activity on March 2 pushing it toward $691, marking gains of more than 5% in extended hours. The rally comes as the stock trades near its 52-week high of $669.75, achieved earlier in February, and well above its low of $410.11 from mid-2025. Year-to-date performance has been strong, fueled by a combination of contract wins, production milestones and broader market dynamics favoring defense contractors.

Lockheed Martin, the world’s largest defense contractor by revenue, benefits from a massive backlog and long-term government commitments. The company reported record financials for 2025 in late January, with full-year sales reaching $75.0 billion, a 6% increase from the prior year. Net earnings stood at $5.0 billion, or $21.49 per share, though results included a one-time $479 million pension settlement charge. Free cash flow was solid at $6.9 billion, supported by $8.6 billion in cash from operations.

The company’s backlog hit an all-time high of $194 billion, providing strong visibility into future revenues. For 2026, Lockheed Martin guided sales between $77.5 billion and $80.0 billion, with diluted earnings per share expected in the range of $29.35 to $30.25 and free cash flow projected at $6.5 billion to $6.8 billion. Analysts view these targets as achievable, given steady demand across key programs.

The F-35 Lightning II fighter jet remains the cornerstone of Lockheed Martin’s portfolio. In 2025, the company delivered a record 191 F-35s, surpassing previous highs and underscoring ramped-up production rates. The program, involving international partners and the U.S. military, continues to drive revenue in the Aeronautics segment. Recent advancements include flight testing of an AI-enhanced Combat Identification system, known as Project Overwatch, integrated into the F-35’s sensor fusion. This innovation improves pilot situational awareness by generating independent combat ID recommendations in real time.

Missiles and fire control systems have also seen significant momentum. Lockheed Martin’s Grand Prairie, Texas, facility received more than $77 million in contracts this month for Patriot PAC-3 MSE modifications and related work. A landmark $9.8 billion U.S. Army award from September aims to boost annual production capacity to 1,970 units from 620, responding to global demand, including support for Ukraine and allied nations. The company delivered 620 Patriot units in 2025 following production increases.

Other recent developments highlight diversification into emerging technologies. Lockheed Martin announced a $10 million order for high-energy laser systems and partnerships in quantum computing research, signaling growth in directed energy and advanced computing. In unmanned systems, the company unveiled the Lamprey multi-mission autonomous undersea vehicle in February, developed in just 14 months to meet U.S. Navy needs for covert operations and sea denial. Plans include larger variants and additional platforms by year-end.

The company is also positioning for space and lunar initiatives. It advances fission surface power concepts for NASA’s Artemis program, with White House directives emphasizing nuclear reactors for lunar bases by 2030. Lockheed Martin secured Phase 1 contracts and extensions to develop these systems, supporting long-duration lunar missions.

Geopolitical factors appear to underpin the recent stock momentum. Escalating tensions, including reported Iran-related developments and broader Middle East instability, have boosted defense stocks industrywide. Lockheed Martin’s exposure to missiles, aircraft and integrated systems aligns with increased Pentagon focus on readiness and modernization. The company’s low beta of around 0.23 indicates relative stability compared to the broader market, appealing to investors seeking defensive plays.

Market capitalization hovers near $151-152 billion, with a price-to-earnings ratio around 30.6 based on trailing earnings and a forward-looking valuation that some analysts describe as fully priced or stretched. The dividend yield stands at approximately 2.0-2.1%, with a quarterly payout supporting income-focused shareholders. Ex-dividend date was March 1, 2026.

Analysts maintain a generally positive outlook, though some caution that growth remains concentrated in certain segments like missiles, with modest overall acceleration expected. A recent Seeking Alpha analysis characterized Lockheed Martin as “operationally strong” but a “textbook hold” for 2026 due to valuation.

The company continues to invest in next-generation capabilities, including collaborative combat aircraft like Vectis, designed to integrate with fifth-generation platforms such as the F-35 and F-22. Leadership has emphasized readiness for initiatives like “Golden Dome for America,” focusing on multi-domain connectivity.

As Lockheed Martin navigates 2026, its blend of legacy programs, production ramps and innovation in AI, autonomy and space positions it to capitalize on sustained defense priorities. Investors will watch upcoming quarterly results, expected around April 21, for further updates on execution and potential adjustments to guidance.