Rolls-Royce and BAE Systems lift 2026 guidance on government defence spending

On July 30, 2026, Rolls-Royce raised its 2026 operating profit forecast to £4.7bn–£4.9bn (from £4.0bn–£4.2bn) and BAE Systems lifted earnings growth guidance to 10%–12% (from 9%–11%). Both cited government defence investment commitments. BAE pointed to a £5.9bn HMS Dreadnought submarine contract and a Turkish Typhoon deal. The shared driver signals sector-wide demand, not company-specific outperformance.