Rolls-Royce jumps 4% as it sees boost from both the defense boom and AI data center buildout

Rolls-Royce shares climbed after the company raised full-year profit and cash flow guidance, citing strong first-half earnings and demand across civil aerospace, defense, and power systems. For the first six months, the FTSE 100 group reported underlying operating profit of £2.5 billion ($3.3 billion), up 46% year-on-year. Revenue increased more than 24% to £11.3 billion. Rolls-Royce now expects full-year underlying operating profit of between £4.7 billion and £4.9 billion, compared with prior guidance of £4.0 billion to £4.2 billion. Free cash flow is expected at £3.8 billion to £4.0 billion, up from £3.6 billion to £3.8 billion previously.