Rolls-Royce has raised its forecasts for the full year 2026 following a better-than-expected first half, supported by strong demand in the civil aerospace, defense, and power systems sectors for artificial intelligence data centers.
In the first six months of the year, the British group recorded an underlying operating profit of £2.5 billion, up 46% compared to the same period in 2025, while revenues increased by over 24%, reaching £11.3 billion.
In light of these results, the company has revised its guidance upwards for the full financial year. Rolls-Royce now expects an underlying operating profit between £4.7 and £4.9 billion, compared to the previous estimate of £4-£4.2 billion. Expectations for free cash flow have also improved, now forecast between £3.8 and £4 billion, compared to the previously indicated £3.6-£3.8 billion.
Supporting this growth are two of the main trends driving global investments: the increase in defense spending and the rapid expansion of artificial intelligence infrastructure. Chief Financial Officer Helen McCabe stated that orders for the division that builds power systems for data centers grew by over 50% in the first half of the year.
This was driven by a growing demand for energy backup solutions from operators struggling with power grid limitations. The upward revision of the estimates was positively received by the market, with Rolls-Royce stock up approximately 4% in early trading.