Northrop Grumman Shares Jump 6.6% on Q3 Beat, Record $109.6 Billion Backlog

3-line summary

• Northrop Grumman shares rose about 6.6% after reporting third-quarter diluted EPS of $7.89, beating the $7.18 consensus by $0.71, on revenue up 7% year-over-year to $11.12 billion; the company raised its 2026 adjusted EPS guidance to $29.35-$29.75, above both its prior outlook and the $28.98 consensus, while also lifting segment operating-income guidance by a midpoint of $65 million.
• The company reported a record backlog of $109.6 billion as of September 30, with $16.4 billion in new orders during the quarter and a book-to-bill ratio of 1.5x-equivalent to roughly 2.5 years of future revenue, according to the report; its aeronautics systems segment grew 14% on accelerated B-21 bomber production and increased F-35-related work.
• Rival RTX also reported strong results and raised its 2026 outlook the same day, lifting sentiment across the aerospace and defense sector; Goldman Sachs and Bernstein had cut their Northrop Grumman price targets just before the results, and the stock had been trading near multi-month lows after a prolonged decline, with the broader market mixed (S&P 500 -0.15%, Nasdaq -0.79% on AI-stock weakness, Dow +0.60%).

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