Rolls-Royce and BAE Systems raise 2026 forecasts on defence spending surge

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