Northrop Grumman raises 2026 profit forecast on strong defense demand

what happened

Northrop Grumman raised its 2026 adjusted profit forecast to $29.35–29.75 per share from the prior $28.60–29.10 range, Reuters reported. Strong demand for military aircraft, missiles and defense programs helped lift third-quarter profit and sales and pushed the company's backlog to a record high.

Quarterly sales rose 7% from a year earlier to $11.12 billion, beating analyst expectations of $11.14 billion. The Aeronautics Systems unit grew 14% on higher B-21 bomber sales and F-35 production, while Defense Systems sales rose 12% as the Sentinel missile program ramped up. The company secured $16.4 billion in new contracts, and its backlog reached $109.6 billion as of September 30.

CEO Kathy Warden said, "I'm confident our new record backlog, well-positioned portfolio and investments, and industry-leading performance will continue to drive sales and earnings growth as reflected in our 2027 outlook." Quarterly profit was $1.12 billion, or $7.89 per share, up from $7.67 a year earlier.

why it matters

For markets, the update signals sustained demand for US and allied defense programs amid heightened geopolitical tensions. Reuters reported that shares rose nearly 2% before the bell, and quarterly earnings per share came in above the $7.18 analyst estimate. A large backlog gives the contractor more visibility into future revenue.

market impact

Defense sector: record backlog and raised guidance support US defense contractors' outlook

tags

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