Three US defense contractors lift 2026 outlooks as backlogs hit records

what happened

Three of the biggest American aerospace and defense companies reported third-quarter results on Tuesday, and each lifted its full-year 2026 forecast. Equity Insider, whose commentary was carried by TradingView, notes that two of them posted record order books, with one contractor holding $340 billion in backlog, of which $164 billion is defense work.

RTX raised its adjusted sales outlook to $97.0–97.5 billion and its adjusted EPS range to $7.65–7.75. Northrop Grumman nudged up its EPS and segment operating income guidance, while GE Aerospace raised its profit and free cash flow targets. Northrop stock climbed 4.57% to $534.00 and RTX added 0.64% to $193.34, whereas GE Aerospace slipped 3.67% to $299.87 despite its higher guidance.

Lockheed Martin is scheduled to report on October 22 and L3Harris on October 29.

why it matters

The budget backdrop matters for the sector. The president's fiscal 2027 request totals $1.5 trillion, but the government currently runs on a continuing resolution through December 11. According to the Congressional Research Service, that measure stops the Pentagon from using its funds to speed production above fiscal 2026 levels, so the weight now falls on contracts already signed and the backlogs they build.

market impact

US defense stocks: record backlogs and raised outlooks support the sector, though individual share moves have diverged

tags

instruments