European shares moved higher as strong corporate results and continued confidence in defence spending supported the regional market. The STOXX Europe 600 gained 0.6%, while the broader STOXX Europe index rose 0.55% and the eurozone blue-chip index advanced 0.53%.
National markets also recorded solid gains. The FTSE 100 climbed 1.28%, Germany’s DAX increased 0.65%, France’s CAC 40 rose 0.95% and Spain’s IBEX advanced 1%.
The positive market backdrop coincided with encouraging first-half updates from Dassault Aviation, Thales and Indra. Their results show that higher European military spending is moving into active programmes, larger order books and stronger revenue visibility.
Dassault Aviation reported higher first-half sales and profit while maintaining its full-year targets. The company delivered 13 Falcon business jets, compared with 12 during the same period a year earlier, while Falcon orders increased to 23 aircraft from eight.
The sharp rise in Falcon orders provides greater balance alongside Dassault’s military aircraft operations. Although the company did not book new Rafale fighter orders during the reporting period, the longer-term opportunity remains significant.
India submitted a formal request to France in June for 114 Rafale aircraft, with part of the proposed production expected to take place in India. France and Ukraine have also agreed a roadmap that includes potential access to French military technology and the proposed acquisition of 16 Rafale jets.
These discussions reinforce the Rafale’s position in international defence procurement and could support Dassault’s order book over the coming years. Government approvals and contract negotiations will determine the timing, but the scale of the potential orders strengthens the company’s strategic position.
The suspension of the Future Combat Air System programme following disagreements between France and Germany remains a programme risk. However, Dassault’s exposure to both military and business aviation reduces its dependence on one future platform.
Thales also delivered a strong first-half performance. Order intake increased by 21 per cent on a reported basis to €12.47 billion, supported by demand for defence electronics, surveillance equipment and aerospace systems.
Adjusted earnings before interest and tax rose to €1.37 billion, while the adjusted operating margin reached 12.5 per cent. The improvement reflects stronger contributions from the company’s defence and aerospace activities.
Thales maintained its expectation for organic sales growth of between 6 and 7 per cent for the full year. It also retained its adjusted operating margin target of between 12.6 and 12.8 per cent.
The combination of higher orders, improving margins and unchanged guidance provides clearer visibility over the group’s future revenue and earnings. Weaker trading in cyber and digital operations remains an area to monitor, but Thales’ diversified portfolio gives the business several routes to growth.
Indra also confirmed its 2026 targets after its defence operations drove a substantial increase in first-half revenue and operating profit. Defence revenue more than doubled to €973 million, supported by work on the Eurofighter programme, military modernisation projects and armoured vehicles.
The Spanish defence and technology group reiterated its expectation of record annual revenue above €7 billion. The result shows that Indra’s strategic expansion into defence is becoming a more important source of growth.
Revenue connected with the Future Combat Air System programme declined by 15 per cent, reflecting uncertainty around the multinational project. However, Indra’s involvement in established aircraft, vehicle and modernisation programmes provides broader exposure to European defence demand.
The rise in European shares adds a positive market dimension to the company updates. Gains across the FTSE 100, DAX, CAC 40 and IBEX indicate that confidence was not limited to one country or sector.
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