London, Feb 27, 2026, 08:02 GMT — Regular session
Shares of Rolls-Royce (RR.L) edged up 0.5% to 1,359 pence during early Friday trading in London, sticking close to their latest peaks following Thursday’s sharp rally.
Rolls-Royce’s shares have surged on the back of its 2025 performance and a new, more aggressive plan to return cash to shareholders—a notable shift after years of focusing on shoring up its finances. The company posted underlying operating profit of £3.46 billion for 2025 and laid out a £7 billion to £9 billion share buyback set for 2026 through 2028.
Investors are watching the mechanics just as closely as the top-line figure now. Rolls-Royce revealed plans for up to £2.5 billion in buybacks for 2026, kicking off this Thursday with an initial tranche of as much as £2.3 billion. Those purchases, handled by Morgan Stanley and UBS, are scheduled in phases and must wrap up by Dec. 23. The shares are being cancelled on acquisition.
Thursday packed a punch. Rolls-Royce surged 9.1%, propelling the FTSE 100 to a record finish. Reuters data also showed the aerospace and defence sector notching its own all-time high.
Certain brokers pushed the familiar “beat and raise” narrative. Jefferies’ Chloé Lemarié described the release as “another beat & raise with strong cash returns,” per Investing.com. Investing.com South Africa
Since coming onboard in 2023, chief executive Tufan Erginbilgic has been steering the conversation toward what’s next after the turnaround. He highlighted fresh opportunities in nuclear and floated a possible return to the narrow-body engine market—territory mostly controlled by CFM International (GE Aerospace and Safran) and RTX’s Pratt & Whitney. On the subject of UK government support for the UltraFan engine, Erginbilgic told reporters, “It is natural that government will look to support that.” Interactive Investor’s Richard Hunter didn’t hold back, calling the latest results “sparkling.” Reuters
Rolls-Royce is projecting underlying operating profit between £4.0 billion and £4.2 billion for 2026, with free cash flow expected at £3.6 billion to £3.8 billion, Alliance News reported via London South East. The piece also mentioned a final dividend set at 5.0 pence and reaffirmed the company’s ongoing share buyback program.
Investors are eyeing whether demand in the civil aerospace and power systems units will keep translating into cash, both divisions buoyed lately by increased flying hours and the surge in electricity use from data centres. According to The Guardian, Erginbilgic has been pushing the UK government for taxpayer money for UltraFan, making the case that overseas competitors benefit from public funding for new engines.
Still, with shares up, there’s less margin for error now. Any slowdown in the airline cycle, new supply chain hiccups, or a slip in the company’s buyback speed could sour sentiment fast—particularly since Thursday’s gains have raised the bar.
Traders now watch to see if the stock can maintain its post-earnings bounce through the weekend, and whether initial buyback interest makes a mark on volumes or price as the new programme gets underway.
Management is set for investor meetings next. Rolls-Royce plans a UK investor roadshow on March 2, then heads to the US and Canada for another round on March 10. The company is also on the schedule for the Bank of America Global Industrials Conference, March 17.
