Update 1 - Northrop raises its 2026 profit forecast due to strong defense demand and record backlog of orders

Add charts and stock price data in paragraph 2, and profit and revenue forecasts in paragraphs 9 and 12.

Reuters, October 20 - Northrop Grumman Corporation (NOC.N) raised its annual profit forecast on Tuesday after strong demand for military aircraft, missiles, and defense programs not only pushed its third-quarter profit above Wall Street expectations but also drove its backlog of unfinished orders to a record high.

The stock price of the Virginia-based defense contractor, headquartered in West Falls Church, rose nearly 2% in pre-market trading.

Northrop manufactures the B-21 "Raider" bomber and F-35 fighter jet components. With escalating geopolitical tensions, the company has benefited from rising military spending by the U.S. and its allies.

"I am confident that our record backlog, well-positioned business portfolio and investments, and industry-leading performance will continue to drive sales and earnings growth, as reflected in our outlook to 2027," CEO Kathy Warden said.

In the quarter, the company signed new contracts worth a total of $16.4 billion, with order growth at 1.5 times sales, mainly thanks to strong demand for programs such as the "Sentinel," F-35, Virginia-class submarines, and certain classified projects.

As of September 30, Northrop Grumman's backlog of unfinished orders rose to a record $109.6 billion.

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The company now expects adjusted full-year earnings per share for 2026 to be in the range of $29.35 to $29.75, compared with its previous range of $28.60 to $29.10.

Benefiting from growth across all four major business segments, quarterly sales rose 7% year-on-year to $11.12 billion. According to data compiled by LSEG, analysts had previously expected $11.14 billion.

This growth was mainly driven by a 14% increase in its aerospace systems division, fueled by rising B-21 bomber sales as well as increased production and maintenance work for the F-35 fighter jet.

The defense systems division’s sales rose 12%, supported by continued expansion of the Sentinel missile program.

The company's quarterly earnings per share were $7.89, while analysts had previously expected $7.18 per share.

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