Rolls-Royce Shares Hits Fresh High as Markets Bullish Into Earnings

Rolls-Royce share price (LON:RR) has moved to a new record high of 1,342p today, extending the engineering giant's remarkable rally to more than 11% since the start of 2026. The climb comes as markets position ahead of the company's full-year earnings report, scheduled for release on 26 February, with sentiment remaining decidedly bullish into the print.

The share price gain reflects sustained confidence in Rolls-Royce's transformation story, which has seen the company transition from pandemic-era distress to becoming one of the FTSE 100′s standout performers. Markets appear to be pricing in expectations of continued operational momentum and further evidence of margin expansion across the company's civil aerospace division, which has benefited from the recovery in long-haul travel and rising engine flying hours.

Rolls-Royce delivered underlying operating profit of £2.5 billion for 2024, comfortably exceeding market forecasts when reported in February 2025. That performance marked a turning point for the business, enabling management to reinstate dividends at 6p per share for the first time in five years and launch a £1 billion share buyback programme. The combination of capital returns and profit growth has fundamentally altered the investment thesis, drawing renewed institutional interest.

By September 2025, the company's market valuation had surpassed £100 billion for the first time in its history, with shares trading above 1,191p. That milestone underscored the scale of the turnaround orchestrated under current management, which has focused on operational efficiency, aftermarket growth, and technological leadership.

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Challenges remain, however. Industry-wide supply chain constraints continue to pose risks to production schedules and service delivery. Airbus highlighted these concerns in January 2026, noting potential disruptions that could affect engine deliveries. Rolls-Royce's ongoing buyback programme and capital allocation strategy are being scrutinised in this context, with some questioning whether investment in operational resilience should take precedence.

With earnings just days away, markets will be watching for updated guidance on civil aerospace flying hours, defence order momentum, and progress on the Ultrafan programme. Any indication of accelerating aftermarket revenue or improved margins could provide further fuel for the rally, while commentary on supply chain mitigation will be closely parsed for signs of operational stress.