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

By Reuters News


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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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


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.)

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