Rolls-Royce and BAE Systems raise profit expectations as governments boost defence budgets

On July 30, 2026, two big British defence companies raised their profit predictions. Rolls-Royce expects higher operating profit — what remains after paying running costs. BAE Systems raised its earnings growth outlook. Both said governments are spending more on defence. BAE highlighted a £5.9bn submarine deal and a Turkish jet-fighter agreement. The shared cause suggests industry-wide demand, not just one company doing well.