Northrop Grumman beats profit forecast and raises 2026 outlook despite revenue miss

Quarterly revenue of $11.12 billion fell short of the $11.25 billion Wall Street expected, even as earnings per share topped estimates by $0.64

Northrop Grumman reported third-quarter earnings of $7.89 a share on a GAAP basis, beating expectations by $0.64. Revenue came in at $11.12 billion, below the $11.25 billion analysts had forecast.

The company raised its full-year 2026 guidance. It now expects segment operating income of $4.94 billion to $5.04 billion, up from a prior range of $4.85 billion to $5.00 billion. It also lifted its 2026 forecast for MTM-adjusted earnings per share to a range of $29.35 to $29.75, from $28.60 to $29.10. Sales guidance for 2026 was left unchanged at $43.75 billion to $44.25 billion, and the company guided to adjusted free cash flow of $3.1 billion to $3.5 billion.

Chair, chief executive and president Kathy Warden said she is confident the company's record backlog and investments position it to drive sales and earnings growth into 2027.

The results come three weeks after Northrop Grumman lost the Navy's F/A-XX fighter contract to Boeing, a setback worth more than $20 billion over the program's multi-decade run. This quarter shows the company absorbing that loss without any dent to its near-term financial momentum, with the record backlog, rather than any single program win, cited as the basis for growth into next year. The guidance increase also comes as chief financial officer Kenneth Crews prepares to leave for Science Applications International effective December, a transition investors will watch for continuity given the newly raised multi-year targets.