$RR

Rolls-Royce shares rose 3.7% to 1,430.4p after the company reported H1 2026 results. Underlying operating profit was £2.53bn vs £2.37bn expected, and underlying revenue was £11.28bn vs £11.0bn expected. Rolls-Royce raised 2026 guidance to £4.7–£4.9bn profit and £3.8–£4.0bn free cash flow, declared a 6.0p interim dividend, and saw Moody’s and Fitch upgrade credit ratings.

Richtech Robotics Inc. (Nasdaq: RR) said Nasdaq issued a noncompliance notice after it failed to timely file its Form 10-Q for the quarter ended March 31, 2026. The company submitted a compliance plan on July 20, 2026. If accepted, it could receive up to 180 days to regain compliance until Nov. 16, 2026.

Richtech Robotics (RR) shares fell nearly 35% in H1 2026 amid allegations its Microsoft AI partnership was overstated, subsequent class action lawsuits, and weaker results. Q1 fiscal 2026 revenue fell to about $1.15M and net loss rose to $8.4M. The company missed its Q2 filing, received Nasdaq noncompliance notice, and disclosed restatements for prior financials.

The UK Defence Investment Plan (DIP) will raise defence spending to £80 billion by 2029, but it remains below NATO’s 5% of GDP target. The DIP includes £298 billion of investment over four years, plus £20 billion for the nuclear deterrent, £5 billion for drones, £3.2 billion for space, and £2.5 billion for cyber. Analysts cite potential beneficiaries including BAE Systems, Chemring, Rolls-Royce and QinetiQ, though shares have largely not rallied.

Jefferies upgraded Leonardo to Buy and named it its new top pick in European aerospace and defense, replacing Rheinmetall. The bank shifted to a 2028 sum-of-the-parts valuation, raised 2026 estimates, and cited Defense Electronics and air-defense exposure. Jefferies sees 30% upside to its price target and expects re-rating.

Richtec Robotics (NASDAQ: RR) said its board audit committee found its audited financial statements for the two most recent fiscal years “should not be relied upon” and require restatement, and that several quarterly unaudited periods in 2024–2025 are similarly unreliable. The company plans updated 10-Ks and corrected quarterly filings; RR shares fell slightly over 30% in June. It also bought a Las Vegas warehouse for $21M and planned to unveil an AI pallet-jack robot.

European defence stocks have fallen this year as investors question governments’ ability to fund higher military spending. The Stoxx Europe targeted defence index is down ~3% in sterling. Rolls-Royce and BAE Systems are top holdings; Rheinmetall shares dropped after Germany scrapped a €15bn warship contract. UK’s Defence Investment Plan adds £15bn over four years, lifting BAE Systems, Babcock, QinetiQ and Chemring.

The UK confirmed an extra £15bn ($19.9bn) in defense spending over four years under its Defence Investment Plan, raising annual spending to £79.1bn by 2029 (2.7% of GDP), according to the UK government. The FTSE 350 Aerospace & Defense index rose ~5% after the announcement, with BAE Systems, Babcock and Chemring among gainers. Analysts cite fiscal risks and higher gilt yields.

U.S. Transportation Secretary Sean Duffy visited Albuquerque to highlight the Advanced Air Mobility Integration Pilot Program, backed by $12.5 billion under President Trump’s “One Big Beautiful Bill.” Reliable Robotics, chosen by the DOT, will test autonomous cargo flights at Albuquerque International Sunport using a Cessna 208 Caravan. Testing is expected in August; a ~3-year program begins late summer, with FAA support for detect-and-avoid radar and auto-landing.

Rolls-Royce, BAE Systems and Babcock rose 2%-3% in early FTSE 100 trading, supported by expectations of higher UK defence spending ahead of the G7 summit. New defence secretary Dan Jarvis is set to review the investment plan and seek more funding after John Healey’s resignation. Starmer has pledged 3% of national income on defence by end-2034; analysts note valuations are stretched.