Rolls‑Royce shares jump as H1 2026 results lift profit outlook

Rolls‑Royce plc’s share price has risen sharply, up about 136% since the start of 2025, turning a £15,000 investment into roughly £35,400 and delivering a dividend yield above 0.7%. The surge follows the company’s half‑year 2026 results, which showed underlying operating profit of £2.5 bn – a 47% increase year‑on‑year – and an operating margin of 22.5%, up from 18.1% a year earlier. Free cash flow grew 25% to £2 bn and net cash reached £2.1 bn at the end of June 2026.

Management raised full‑year 2026 guidance across the board, lifting the profit target to £4.7‑£4.9 bn and free‑cash‑flow target to £3.8‑£4.0 bn. The company also announced a £1 bn share‑buyback programme for 2025 and reinstated its dividend, payable on 16 June 2025. These moves reflect confidence in continued growth across its civil aerospace, defence and power‑systems divisions.