Defense and Data Centers Drive Europe: Record Results for Rolls-Royce and Indra

The final days of February 2026 brought a series of spectacular financial reports that pushed European stock market indices to levels close to historic records. The main actor of this bull run became the Rolls-Royce conglomerate, whose profit increased by one billion pounds year-on-year. The company benefited not only from the recovery in the aviation sector but primarily from the surging demand for power generation units for data centers serving artificial intelligence and engines for armored vehicles. The company's management, confident of further expansion, announced an ambitious share buyback program worth 12 billion dollars and raised strategic targets for 2028. Concurrently, on the Madrid stock exchange, the results of Indra caused genuine euphoria. Shares of the Spanish technology and defense giant rose by over 21% in a single session, reacting to a record order portfolio driven by the modernization of the Spanish armed forces. Investors also enthusiastically welcomed news of Indra's acquisition of EM&E, further strengthening its market position. Positive sentiment also encompassed the German defense sector. The company Hensoldt reported an unprecedented order boom resulting from increased spending on the Bundeswehr, despite a slight miss on revenue forecasts. Regionally, on Lake Constance in Friedrichshafen, Rolls-Royce Power Systems plans to build a new plant to meet the growing demand for emergency power supply systems. Since Russia's invasion of Ukraine in 2022, European countries have been systematically increasing defense budgets, translating into long-term contracts for the arms industry after a decade of stagnation. The stock market optimism was not limited to defense. The British FTSE 100 index tested record levels, despite some declines in the mining sector. Commodity markets saw a jump in oil prices, which analysts link to rising tensions between the USA and Iran. This situation, while causing geopolitical concern, paradoxically strengthens the valuations of energy and defense companies, creating a specific investment climate where energy and military security become the main pillars of growth. In Spain, an additional stimulus was the results of Acciona, which recorded a more than ten percent strengthening of its share price thanks to an almost doubling of profits.