Rolls-Royce stock has outperformed Nvidia’s in the last three years — and the gap is growing

MarketWatch

by Jules Rimmer

February 26, 2026

AI-Generated Deep Dive Summary

Rolls-Royce stock has significantly outperformed Nvidia over the past three years, with a widening gap between the two companies. This remarkable performance can be attributed to strategic moves by Rolls-Royce's leadership. Tufan Erginbilgic, the company’s chief executive, recently raised guidance for its share buyback program, free cash flow, and underlying profits, signaling confidence in the company’s future prospects. The decision to increase the share buyback program suggests that Rolls-Royce aims to return more value to its shareholders. This move is likely to boost investor confidence and further drive up stock prices. Additionally, the raised expectations for free cash flow and underlying profits indicate strong financial health and growth potential, positioning the company favorably in the markets. Rolls-Royce’s ability to consistently outperform tech giants like Nvidia highlights its resilience and adaptability in a competitive market. The company’s focus on maximizing shareholder value through buybacks and improved profitability aligns with investor interests, making it an attractive option for those seeking stable returns. This trend underscores the importance of strategic financial management in sustaining long-term growth. For investors, Rolls-Royce’s outperformance and strategic moves offer valuable insights into effective corporate governance and investment opportunities. The company’s ability to consistently meet and exceed expectations reinforces its position as a key player in the finance and markets sectors. This development is particularly significant for those interested in understanding how companies can adapt and thrive in dynamic economic environments. In summary, Rolls-Royce’s stock outperformance over Nvidia and the CEO’s raised guidance on buybacks, cash flow, and profits underscore the company’s strong financial position and strategic planning. This growth trajectory not only benefits shareholders but also sets a benchmark for other businesses looking to enhance their market standing through disciplined financial management.

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Originally published on MarketWatch on 2/26/2026