Swedish defense giant Saab's second quarter profit exceeds expectations, benefiting from a significant increase in security budgets in Europe.

Swedish defense giant Saab saw its stock price rise in early trading on Friday, after the company announced higher-than-expected second-quarter profits and sales. Saab's second-quarter revenue was 19.8 billion Swedish kronor, a 49% jump compared to the same period last year, exceeding analysts' expectations of 17.1 billion Swedish kronor. Sales for the quarter also grew by 30%, surpassing expectations. According to LSEG data, Saab's stock price has soared by 131% since the beginning of the year. The stock is one of many in the European defense sector benefiting from a significant increase in security budgets in Europe. On Wednesday, the European Commission unveiled a budget proposal of 2 trillion euros, which includes a substantial increase in defense funding. This is part of what officials are calling a "rearming era" in Europe - the EU has announced plans to mobilize up to 800 billion euros to help member states increase national security spending. Meanwhile, NATO member countries have recently agreed to raise defense expenditure targets to 5% of GDP.