Rolls-Royce raises 2026 targets after profits beat expectations

Rolls-Royce shares increased on Thursday following a near 50 per cent rise in operating profits during the first half of the year. The FTSE 100 engineering firm benefited from a boom in defence spending and improved profitability across all divisions. Consequently, the group has hiked its 2026 targets, forecasting an underlying operating profit between £4.7bn and £4.9bn by the end of the year, reflecting the strong financial performance reported across its various business sectors.