Grab and Rolls-Royce investors rally on AI-led gains

What's happened

Grab reports strong Q2 results and lifts full-year outlook as AI-driven efficiency boosts margins; Grab is accelerating in Southeast Asia while pursuing Taiwan expansion. Rolls-Royce posts higher semi-annual profit guidance on defense demand and data-centre power growth, with AI-influenced efficiency lifting margins.

What's behind the headline?

What this means for readers

• AI is reshaping profits across two very different sectors: ride-hailing and aerospace power systems.
• Southeast Asia remains a growth engine for consumer tech-enabled services.
• Defence spending and data-centre expansion are feeding heavy capex cycles that underpin earnings.

Why it matters now

• The market is pricing in continued AI-led efficiency, which could sustain margins even as macro headwinds persist.
• Investors are watching capex and cloud revenue as the key drivers of near-term earnings growth.

How we got here

Grab has seen rising rides and revenue in Q2 as AI is embedded in products and operations, supporting margin improvement. Rolls-Royce is benefiting from greater defence spending and AI-related data-centre demand, pushing its interim profits higher while guidance is raised.

Our analysis

CNBC reports that Grab has raised its full-year revenue outlook to $4.10-$4.15 billion and EBITDA to $720-$740 million, with Q2 revenue up 22% and rides up 28%; CNBC notes AI is embedded in the Grab business and that the Taiwan delivery-foodpanda deal is awaiting regulatory clearance. Rolls-Royce has lifted H1 guidance to a34.7- 34.9 billion underlying operating profit, with revenue up 24% to a311.3 billion and free cash flow improving, while Defence and data-centre demand support growth, CNBC adds.

Go deeper

• What other regions are showing AI-driven gains for Grab?
• How will Rolls-Royce balance higher capex with cash flow?
• What does the Taiwan deal mean for Grab’s regional expansion?

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