BlackSky Technology (BKSY) shares are trading 5.4% down at $25.69 despite the company announcing on July 7, 2026, that it secured multiple U.S. government research and development contracts for Gen-3 AI solutions. The decline follows a sharp rally in late June, with investors potentially engaging in profit-taking and broader risk-off sentiment. The newly secured contracts are aimed at enhancing mission-critical Gen-3 artificial intelligence capabilities for real-time tactical intelligence, surveillance, and reconnaissance operations.