Northrop, RTX Raise Full-Year Earnings Outlook Amid Record Backlog

11:59 AM EDT, 10/20/2026 (MT Newswires) -- Northrop Grumman (NOC) and RTX (RTX) raised their full-year adjusted earnings outlook amid record order backlogs as the defense contractors' third-quarter results grew year on year. Northrop now expects adjusted earnings per share of $29.35 to $29.75, up from its prior guidance of $28.60 to $29.10. The company maintained its revenue projection of $43.75 billion to $44.25 billion for 2026. The FactSet-polled consensus puts full-year EPS at $28.93 on revenue of $44.07 billion. "We are exceeding our own expectations and increasing our 2026 guidance for segment operating income, margin rate, and earnings per share," Chief Executive Kathy Warden said during an earnings call, according to a FactSet transcript. "We expect to drive that momentum into 2027 as we ramp B-21 testing and production, advance Sentinel, continue our leadership in national security space, and meet increased demand for missile and munitions production." B-21 Raider will be the world's first sixth-generation stealth bomber. Sentinel is an intercontinental ballistic missile program. The defense contractor sees 2027 sales expanding 5% to 7%, with growth acceleration slated for 2028, Chief Financial Officer John Greene said on the call. Analysts expect 6.8% and 6.1% growth rates in 2027 and 2028, respectively. For the September quarter, Northrop's EPS rose to $7.89 from $7.67 a year earlier, exceeding the FactSet-polled consensus of $7.19. Total sales increased 7% to $11.12 billion, while the Street expected $11.15 billion. Northrop's aeronautics and defense system segments posted double-digit percentage revenue growth year-over-year in the third quarter, while mission systems and space systems each rose 2%. The company's backlog grew to a record $110 billion, Warden said. Shares of Northrop jumped 5% in Tuesday trade, but have fallen 5.9% so far this year. Separately, RTX said it now projects 2026 adjusted EPS of $7.65 to $7.75, up from the previous $7.10 to $7.25 range. Full-year adjusted sales are now pegged at $97 billion to $97.5 billion, compared with the prior outlook of $95 billion to $96 billion. Analysts in a FactSet survey are looking for non-GAAP EPS of $7.26 and sales of $96.29 billion. "Based on our performance to date, we're again raising our full-year outlook for adjusted sales, EPS, and free cash flow," CEO Chris Calio said during an earnings conference call, according to a FactSet transcript. RTX reported adjusted EPS of $2.26 for the quarter ended Sept. 30, up from $1.70 in the prior-year quarter and surpassing the consensus of $1.78. Sales jumped 11% to $24.97 billion, while the Street projected $24.11 billion. Sales rose by double-digit percentages across RTX's three main divisions -- Raytheon, Pratt & Whitney, and Collins Aerospace. The company's backlog surged 36% annually to reach a record $340 billion. "Our record backlog provides clear visibility to our sales expectations in the fourth quarter and throughout next year," Calio told analysts. "So our focus remains squarely on execution." Shares of RTX fell 0.7% intraday Tuesday, taking year-to-date gains to 4%. Last week, Morgan Stanley said that US aerospace and defense companies' results will likely show solid underlying demand. Lockheed Martin (LMT) is scheduled to report third-quarter earnings on Thursday. Price: 541.51, Change: +30.86, Percent Change: +6.04