# Rolls-Royce makes £1 billion more profit after major defence orders

By Dan Coatsworth — 2026-02-26

Dan Coatsworth, head of markets at AJ Bell, said: “Better than expected results from Rolls-Royce put a new rocket under its share price, taking it to a new all-time high.

“This is one of the most impressive business turnarounds in decades.

“Not simply fixing a few broken doors, Rolls-Royce has sorted out its problems and then taken the business to another level.

“It is rare to pull off such a stunt so smoothly and without bumps in the road.

“Investors are jumping for joy at the gains they’ve made in recent years, but one must question why Rolls-Royce is still ploughing billions of pounds into share buybacks when the stock is on a premium rating.

“Trading on close to 40 times forward earnings is a rating richer than a chocolate torte.

“It is common sense that companies should be buying back stock when it is cheap, not expensive.

“Investors might not care if Rolls-Royce continues to deliver strong business performance and large amounts of cash flow.

“They’ll be delighted the engineer is not only getting more out of its existing operations, but it is also embracing lots of new opportunities.

“The fact it is confident enough to upgrade mid-term targets just goes to show how Rolls-Royce is in full health.

“That raises expectations for the business and means there is no margin for error.”

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