Northrop Grumman beats Q3, raises 2026 guidance and gives 2027 outlook; stock rallies 6.3%
What happened
Northrop Grumman reported third-quarter EPS of $7.89 on $11.1 billion in sales, beating the $7.19 consensus (sales were roughly in line with the $11.2 billion estimate). The company raised its 2026 EPS guidance to $29.35–$29.75 from $28.60–$29.10 and gave an initial 2027 outlook calling for 5–7% sales growth and $3.3–$3.5 billion of free cash flow — largely in line with Wall Street's expectations, per RBC. CEO Kathy Warden pointed to a record backlog. Shares were up 6.3% at $542.55 in morning trading while the S&P 500 was flat, a relief rally after the stock's 10% year-to-date decline and 30% drawdown since the Iran war began.
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Start your free 14-day trialWho’s affected
- Northrop Grumman (NOC) — beat, raised guidance, and first 2027 outlook drive a 6%+ relief rally; defense primes (Lockheed Martin, RTX, General Dynamics) on sector read-through; government-services and aerospace suppliers tied to defense budgets.
Sources