Updated: 11 December 2025 – London
Rolls-Royce Holdings plc (LON: RR.) shares are trading around 1,102.5p on Thursday, 11 December 2025, down roughly 0.3% on the day as investors digest a flood of recent news, from new defence orders to fresh nuclear partnerships and upbeat broker forecasts. Investing
Despite today’s small dip, the Rolls-Royce share price remains near record territory after one of the most dramatic turnarounds in FTSE 100 history. The stock is up more than 80% in 2025 and over 1,000% in the last five years, turning the once-distressed engineer into a stock-market heavyweight. Wikipedia
With a market value of roughly £92–93bn, Rolls-Royce now sits among the largest companies in London’s blue-chip index. London Stock Exchange Below, we break down today’s Rolls-Royce share price, the key news moving RR.L this week, and what analysts are forecasting for 2026.
Rolls-Royce share price today: key numbers
- Last trade (LSE: RR.): 1,102.5p, down 3.5p on the day (‑0.32%). Investing
- Yesterday’s close (10 Dec): 1,106.0p, after a week of tight trading between roughly 1,090p and 1,121p. Shares Magazine
- Market capitalisation: about £92.6bn as of Wednesday’s close, more than double the level a year ago. StockAnalysis
- 2025 high: around 1,195p in September; today’s price is roughly 7–8% below that peak, after a pullback earlier this month. Invezz
- 2025 starting level: shares were near 600p in January, meaning the price has almost doubled year‑to‑date even after recent consolidation. Digrin
In other words, today’s modest decline is happening against the backdrop of an extraordinary multi-year rally.
From crisis to comeback: how RR.L got here
Under CEO Tufan Erginbilgic, who took over in 2023, Rolls-Royce has pushed through aggressive restructuring, cost cuts and portfolio changes. By mid‑2025 the share price had climbed from around £1 in late 2022 to about £11, making the group one of the five largest members of the FTSE 100 by market value. Wikipedia
A pivotal moment came in July 2025, when Rolls-Royce upgraded its full‑year guidance, lifting its operating profit target to around £3.2bn and free cash flow to £3.1bn. The stock jumped roughly 11% in a single session, extending a roughly 400% gain over two years. Reuters
Subsequent trading updates in November reaffirmed guidance in a range of £3.1–3.2bn of underlying operating profit and £3.0–3.1bn of free cash flow for 2025, underpinned by strong demand for widebody jet engines, resilient defence revenues and growing power-systems sales into data centres. Morningstar
Balance-sheet repair has also been central to the story:
- The company has repaid a $1bn bond that matured in October 2025. Rolls-Royce
- Management is close to finishing a £1bn share buyback, with about £0.9bn completed by the end of October. Rolls-Royce
- Credit rating agencies have responded: S&P upgraded Rolls-Royce to BBB+ in August, while Moody’s lifted the rating from Baa2 to Baa1 with a positive outlook in late November, citing strong operating performance and a net cash balance sheet. Rolls-Royce
This combination of profit upgrades, cash generation and credit improvements is the backdrop to today’s elevated share price.
What’s moving the Rolls-Royce share price today?
1. A consolidation phase after a spectacular run
In late November and early December, RR.L slid about 10–12% from its September highs, sparking headlines asking whether the rally had finally peaked. Yahoo Finance
However, over the past week the shares have stabilised in a narrow band just above 1,100p. Technical commentary notes that the stock is hovering around its 50‑day moving average but remains comfortably above the 200‑day, suggesting a strong long‑term uptrend but short‑term resistance near recent highs. Traders Union
Today’s modest 0.3% dip therefore looks more like sideways consolidation than the start of a major reversal.
2. Fresh orders and industrial news in December
Investors are also digesting a busy run of company press releases in the past fortnight:
- 11 December 2025 – Rolls-Royce announced it had delivered its first emergency power generators for data centres with Environmental Product Declarations, underscoring demand from digital infrastructure and the company’s focus on greener power solutions. Rolls-Royce
- 8 December 2025 – the group reported a major order for more than 300 Leopard 2 tank engines, strengthening its defence backlog. Rolls-Royce
- 5 December 2025 – Rolls-Royce unveiled a strategic collaboration with Assystem, AtkinsRéalis and Frazer-Nash aimed at accelerating its nuclear growth ambitions, including small modular reactors (SMRs). Rolls-Royce
- Additional December announcements have highlighted hydrogen in aviation, a strengthened partnership with AVK on emergency power generators, and the opening of a Beijing MRO joint venture, all of which reinforce management’s narrative of diversified, global growth. Rolls-Royce
These operational updates feed into the broader investment case: Rolls-Royce is no longer just a civil-aerospace recovery play, but a multi-division power and propulsion business with exposure to data centres, defence and next‑generation energy technologies.
3. Debt reduction and share buybacks in focus
Today’s trading commentary from several market desks emphasises that investors remain focused on deleveraging and buybacks. One widely circulated technical note pointed out that the stock is consolidating near 1,110p, while staying above key medium‑ and long‑term moving averages, with recent bond repayments and the buyback programme seen as supportive for the share price. Traders Union
Analyst ratings and price targets: how much upside do experts see?
Despite the massive rally, analysts remain broadly positive on Rolls-Royce.
RBC Capital: Outperform with a 1,275p target
In mid‑November, RBC Capital Markets initiated coverage on Rolls-Royce with an “Outperform” rating and a price target of 1,275p. The bank highlighted:
- Strong recovery and growth in widebody jet engines as long-haul air travel rebounds.
- A “steady footing” after management’s multi-year turnaround and improved cash generation. Investing
Relative to today’s price near 1,103p, RBC’s target implies around 15% potential upside if the thesis plays out.
Consensus view: mostly buyers, limited downside calls
A recent survey of broker research compiled by DirectorsTalk shows:
- 12 “Buy” ratings, 5 “Hold”, and no “Sell” recommendations on Rolls-Royce.
- An average target price of about 1,193p, roughly 8% above current levels.
- A wide target range from 790p on the cautious end to 1,440p for the most optimistic analysts. Directors Talk Interviews
In short, Wall Street and the City generally see modest further upside, but not the triple-digit gains investors have become used to.
Valuation: still attractive or getting expensive?
Several recent pieces have wrestled with the question of whether Rolls-Royce is now overvalued after its extraordinary rally:
- A Yahoo Finance analysis noted that the shares delivered roughly 99% returns over the last year, yet may still be reasonably priced versus other aerospace and defence names, depending on future growth. Yahoo Finance
- Another article bluntly asked whether Rolls-Royce shares had become the FTSE 100’s “greatest rip-off”, pointing out that they are up almost 87% year‑to‑date and more than 1,000% in five years. Yahoo Finance
- Citywire’s broker round-up, reviewing recent upgrades, estimated that the stock trades on a forward P/E near the low‑30s and a free cash flow yield around 4–5%, levels considered punchy but still justifiable if guidance is met. Citywire
With trailing earnings multiples in the mid-teens but book value and historic profits still catching up, the market is clearly pricing in a lot of future success.
2026 forecasts: can Rolls-Royce keep climbing?
Financial media are split between excitement and caution when looking ahead to 2026.
The bullish case
A series of recent opinion pieces on The Motley Fool UK and elsewhere make the bullish argument that Rolls-Royce’s transformation still has further to run:
- One article asked whether the share price could “soar another 18% to new highs”, echoing the upside implied by RBC’s target. The Motley Fool
- Another piece discussed whether the stock could “double in 2026”, noting that 2025 has been another “spectacular year” for the shares and that demand for air travel, defence spending and power systems remains robust. Yahoo Finance
- A December stock‑outlook report argued that raised 2025 guidance, strong civil aerospace demand and data-centre power sales provide mid‑term upside, with SMRs offering a potential “second growth engine” beyond aviation. AirInsight
Supporters also point to the return to solid investment grade, the ongoing buyback, and the possibility of further dividend growth as reasons why institutional investors might continue to rotate into the stock. AirInsight
The cautious and bearish case
On the other side, a growing number of commentators are warning that expectations may have run ahead of reality:
- Several recent articles highlight the 12% fall from September highs, questioning whether the stock’s weakness in late November was a sign of a coming downtrend rather than temporary profit-taking. Yahoo Finance
- A piece published yesterday asked bluntly whether 2026 could be the year it “all goes wrong” for the Rolls-Royce share price, pointing to risks such as a slowdown in global air travel, potential pressure on defence budgets and the challenge of sustaining double‑digit margins. The Motley Fool
- Others argue that valuation risk is now the biggest issue: if growth merely normalises rather than accelerates, the current premium multiples could easily compress even if profits keep rising. Yahoo Finance
In summary, most analysts expect continued strength but at a slower pace, with genuine debate about whether Rolls-Royce can keep surprising to the upside.
Key themes for investors to watch
Regardless of your time horizon, there are a few big drivers likely to shape the Rolls-Royce share price from here:
- Civil aerospace flying hours
The company’s profitability is highly sensitive to hours flown on its Trent widebody engines, which drive lucrative aftermarket service revenue. July’s profit upgrade and subsequent guidance reaffirmation were heavily driven by stronger-than-expected flying hours and better engine durability. Reuters - Defence orders and geopolitical spending
New contracts, such as the order for over 300 Leopard 2 tank engines and the prominent presence at events like Dubai Air Show 2025, underscore Rolls-Royce’s importance in Western defence supply chains. Rolls-Royce - Power systems and data‑centre demand
Recent press releases on emergency power generators for data centres and partnerships with players like AVK suggest a growing role in backup power and energy infrastructure—a sector with secular growth as digitalisation accelerates. Rolls-Royce - Nuclear and SMR optionality
The December collaboration with Assystem, AtkinsRéalis and Frazer-Nash, plus ongoing progress in small modular reactors, is seen by some analysts as providing long‑dated, high‑potential optionality beyond aviation and traditional defence. Rolls-Royce - Balance sheet, ratings and shareholder returns
Continued debt reduction, maintenance of investment‑grade ratings and the pace of future buybacks or dividends will be important signals of management confidence and could support the valuation if growth moderates. Rolls-Royce
What today’s Rolls-Royce share price may mean for investors
At around 1,103p, RR.L sits:
- Just below broker price targets, which on average cluster around 1,190–1,280p. Directors Talk Interviews
- Around 7–8% under its 2025 high, but almost double its level at the start of the year. Invezz
For short‑term traders, the key question is whether the current consolidation zone around 1,090–1,120p holds as support, or whether renewed selling pressure pushes the shares back toward early‑December levels near 1,040p. Shares Magazine
For long‑term investors, the focus is more on fundamentals:
- Can Rolls-Royce keep delivering on its ambitious profit and cash-flow guidance?
- Will civil aviation and defence demand remain strong through 2026–27?
- And can new domains like data-centre power, hydrogen and SMRs meaningfully move the needle?
If the answers stay positive, the company’s enormous transformation could still have room to run. If not, today’s elevated valuation gives the market little margin for error.
Important note
This article is for information and news purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always do your own research or consult a qualified financial adviser before making investment decisions.
