Rolls-Royce has lifted its 2026 financial targets after posting stronger-than-expected first-half results, driven by robust demand for its civil and military engines.

The FTSE 100 group now expects underlying operating profit of £4.7bn–£4.9bn for the year, up from a previous £4bn–£4.2bn range, and free cash flow of £3.8bn–£4bn. First-half underlying operating profit rose to £2.5bn from £1.7bn a year earlier, with revenues up 24 % to £11.2bn.

Chief executive Tufan Erginbilgiç said the strong start allowed the upgrade “despite the conflict in the Middle East,” adding that the transformation “continues to deliver, and we are demonstrating that Rolls‑Royce is now a very different company to that of the past.”

Shares have risen nearly 18 % this year, closing at £14.07 in London. The company also confirmed a multiyear share buyback of £7bn–£9bn from 2026‑2028, with £2.5bn slated for 2026.