Northrop Grumman Raises Its 2026 Profit Outlook but Keeps Its Sales Forecast; Stock Dips, Then Rebounds

Northrop Grumman reported third-quarter earnings of $7.89 a share on Tuesday, October 20, 2026, about $0.71 above estimates, on sales of $11.1 billion, up 7% and close to forecasts. It raised its 2026 EPS guidance but left its sales forecast unchanged. The results line reached the MoveSurge news feed at 06:07:05 ET, and the stock fell from $517.99 to $512.50 in the next minute, down 1.06%. The guidance line followed at 06:09:23 ET, and ten minutes later Northrop traded at $520.00, 1.46% above its price when that line crossed.

A higher profit outlook on the same sales

The EPS range moved up $0.70 at the midpoint and now sits above the $28.98 analysts expected, while the sales range did not move, so the higher outlook comes from profit on the same revenue rather than from more volume. It is the second raise this year: on July 21 Northrop lifted the range to $28.60 to $29.10 from $27.40 to $27.90. The guidance uses MTM-adjusted EPS, which removes mark-to-market gains and losses on pension and retiree benefit plans, so the quarter's $7.89, a GAAP figure, cannot be compared directly with the full-year range.

B-21, Sentinel and the backlog

Aeronautics Systems sales rose 14%, helped by higher volume on the B-21 bomber and more F-35 production and support work. Defense Systems sales rose 12% as the Sentinel intercontinental ballistic missile program ramps up; Northrop and the Air Force finished assembling an inert Sentinel missile in September, and the program remains on track for a flight test in 2027. Net awards of $16 billion in the quarter, against $11.1 billion of sales, gave a book-to-bill of 1.5, and backlog reached about $110 billion, up from $104.7 billion at the end of June.

How the stock traded

The first headline carried the EPS beat together with sales close to forecasts, and Northrop fell 1.06% in the following minute. Ten minutes after that line it was back to $519.99, up 0.39% from where it started. The guidance line, which crossed two minutes after the results, preceded a 1.46% rise to $520.00 over the next ten minutes.