Northrop Grumman shares rise following strong third-quarter earnings

Northrop Grumman shares rose after the aerospace and defense company reported third-quarter revenue of $11.1 billion, a 7% increase year over year. Net earnings grew 2% to $1.1 billion, or $7.89 per share, exceeding Wall Street expectations of $7.18 per share.

Growth was driven by a 14% rise in aeronautics systems revenue and a 12% increase in defense systems sales. Key contributors included the B-21 stealth bomber, F-35 strike fighter, and Sentinel missile programs. CEO Kathy Warden noted unprecedented global demand for defense capabilities, citing conflicts in Ukraine and the Middle East as drivers for increased investment in defense technology.

The company reported a record order backlog of $109.6 billion. Following these results, Baird upgraded Northrop Grumman from ‘Neutral’ to ‘Outperform’, raising the price target from $550 to $675. Analysts cited the company’s revenue visibility through 2028 and a favorable risk/reward profile.