Rolls-Royce has hit a record high every trading day of 2026. Here's why

Core Viewpoint - Rolls-Royce shares have reached record highs this year, driven by its defense exposure, strong power systems business, and a broader FTSE 100 rally [1] Group 1: Stock Performance - Rolls-Royce shares have hit fresh record highs every trading day this year, reflecting a nearly 1,200% gain over the past five years [1] - Shares rose as much as 1.2% in early trading, building on a 10% rise in 2026 [2] Group 2: Business Segments - The defense segment accounts for about 25% of Rolls-Royce's underlying revenue, which showed minimal year-on-year growth in the last reported half-year results [3] - The company is not solely a defense firm, indicating diversification in its business model [3] Group 3: Market Context - Rolls-Royce is trailing behind other European defense stocks like Rheinmetall, Leonardo, Saab, and BAE Systems amid rising geopolitical tensions [2] - The geopolitical landscape has been influenced by significant events, including a large-scale U.S. attack on Venezuela and discussions regarding Greenland [2]