Rolls-Royce shares climbed about 3% in morning trading on Tuesday 10 November 2026, reaching 1,360.30p and ranking among the FTSE 100's top risers as investors positioned ahead of the engineering group's trading update on Thursday.

The shares were trading at 1,359.6p, up 2.95% on the day, in mid-morning trade, while the wider FTSE 100 was up around 0.3% to 0.5% in the same session. The FTSE 100 had closed 1.02% higher at 10,782.87 on Monday, helped by hopes that the conflict between the United States and Iran could be nearing an end.

Rolls-Royce was listed among the leading FTSE 100 risers on Tuesday morning, alongside Lion Finance Group, up 3.24%, and Prudential, up 2.97%, while oil producers Shell and BP fell as Brent crude dropped more than 2%.

Thursday's update is the next test

Rolls-Royce is scheduled to publish its next trading update at 7am GMT on Thursday 12 November, according to the company's investor relations calendar. It will be the next company-led indication of performance across its civil aerospace, defence and power systems businesses.

In July, the board raised its 2026 guidance, and now expects underlying operating profit of between £4.7 billion and £4.9 billion, and free cash flow of between £3.8 billion and £4.0 billion. Investors will be watching whether the update confirms that demand, execution and cash generation remain on track.

The shares have retreated about 20% from their August peak of 1,586p, according to market analysis published on Monday, and remain expensive relative to the wider FTSE 100, with a price-to-earnings ratio near 50 times against about 16 times for the index. That leaves little room for disappointment when the update lands.

Defence and cash in focus

Defence remains a key part of the investment case. The defence order backlog stands at £17.5 billion, and Rolls-Royce Submarines announced on 6 November that it had partnered with INFINITY to develop advanced manufacturing capabilities for the UK defence industry.

Cash generation will also be under scrutiny. Rolls-Royce reported first-half free cash flow of £2 billion, up 24% year on year, and had completed £1.4 billion of its planned £2.5 billion 2026 share buyback by the half-year results.

In civil aerospace, the company recently completed the first local Module 52 swap on a Trent XWB-84 engine in Hong Kong, a maintenance milestone for its aftermarket business. Investors will look for signs that engine flying hours and servicing demand continue to convert into cash.

What investors will watch

The trading update should show whether the momentum from the first half has continued through the rest of the year. The key questions are whether management reaffirms or upgrades its profit and cash flow guidance, and whether demand in civil aerospace and defence remains strong.

If the update confirms the outlook, the recent pullback from the August peak could look like a pause rather than a turn. If it merely matches guidance, some investors may still sell, given the high expectations already built into the share price. Traders Union reported the share price move and the 12 November update date, and AskTraders listed Rolls-Royce among Tuesday's top FTSE 100 risers. Share prices can fall as well as rise, and this article is not investment advice.