Rolls-Royce Profit Forecast Lift Sends Shares Up 5%

Rolls-Royce shares jumped more than 5% after the company raised its Rolls-Royce profit forecast following a strong first-half result. On July 30, 2026, the stock rose 5.45% to 1,455.20 pence, briefly nearing 1,465 pence. Financial highlights: underlying operating profit reached £2.5 billion in the first half, up 46% year-on-year. Free cash flow increased to £2.0 billion. Rolls-Royce profit forecast: the company now expects full-year underlying operating profit of £4.7 billion to £4.9 billion. This is well above its prior guidance (£4.0 billion to £4.2 billion) and above analyst expectations of roughly £4.2 billion. Operational drivers: profitability improved across civil aerospace, defence and power systems. In civil aerospace, the operating margin edged up from 24.9% to 25.3%, supported by stronger aftermarket performance, operational improvements, and better airline contract terms. Rolls-Royce also said it has effectively eliminated aircraft-on-ground issues, reducing customer disruption and improving engine servicing performance. In power systems, demand is supported by data centers seeking backup and primary power solutions, creating additional aftermarket maintenance and servicing opportunities. Defence benefited from the UK’s long-term military investment plans. Key watchpoint for investors: whether the upgraded Rolls-Royce profit forecast can be delivered while maintaining improved margins in the second half of the year.