Northrop Grumman Q3 revenue slightly misses; lifts 2026 profit guidance on strong demand

Northrop Grumman

Tue 11:15

Overview
U.S. defense contractor's Q3 revenue rose 7% yr/yr, slightly missing analyst expectations
Diluted EPS for Q3 rose to $7.89 from $7.67 yr/yr
Company raised 2026 guidance for segment operating income and MTM-adjusted EPS

Outlook
Company raises 2026 segment operating income guidance by $65 mln at the midpoint
Northrop Grumman lifts 2026 MTM-adjusted EPS guidance by $0.70 at the midpoint
Company says 2027 outlook reflects expectations for continued sales and earnings growth

Result Drivers
STRONG DEMAND - Co said sales growth was driven by continued strong demand for its global capabilities
RECORD BACKLOG - Co said new record backlog and well-positioned portfolio support sales and earnings growth
INVESTMENTS - Co said investments are providing capacity to deliver durable growth as it expands product offerings and scales operations

Company press release: Full Story

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$11.1 bln
$11.14 bln (18 Analysts)
Q3 EPS
 
$7.89
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Northrop Grumman Corp is $616.00, about 20.6% above its October 19 closing price of $510.65
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

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Press Release https://www.sec.gov/Archives/edgar/data/1133421/000113342126000037/noc-09302026xearningsrelea.htm
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)