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Northrop Grumman Lifts Profit Outlook After Q3 EPS Beat and Margin Gains

Raised guidance underscores stronger profitability despite a tighter sales view for the year.

Overview

  • Earnings per share rose to $7.67, topping estimates, as quarterly revenue increased 4% to $10.423 billion but came in below Wall Street forecasts.
  • Operating income grew 11% to drive an 11.9% operating margin, reflecting improved segment margins and efficiency.
  • Full-year 2025 MTM adjusted EPS guidance increased to $25.65–$26.05, while total revenue guidance narrowed to $41.7–$41.9 billion.
  • Net awards reached $12.2 billion with a book-to-bill of 1.17, lifting backlog to $91.4 billion, and free cash flow jumped 72% to $1.26 billion.
  • Segment results were mixed with growth in Mission Systems, Defense Systems and Aeronautics offset by a decline in Space Systems, and shares traded about 1.3% lower premarket.