Northrop Grumman Q3 Earnings Top, Revenues Miss, '25 EPS View Raised

Northrop Grumman Corporation NOC reported third-quarter 2025 adjusted earnings of $7.67 per share, which beat the Zacks Consensus Estimate of $6.49 by 18.2%. The bottom line also increased 9.6% from $7 registered in the prior-year quarter.The company reported GAAP earnings of $7.69 per share, which improved 9.5% from the year-ago quarter’s reported number of $7.02.The year-over-year improvement can be attributed to strong segment operating performance.NOC’s Total SalesNOC’s total sales of $10.42 billion in the third quarter missed the Zacks Consensus Estimate of $10.72 billion by 2.8%. However, the top line rose 4.3% from $10 billion reported in the year-ago quarter. The rise can be attributed to higher sales from its Aeronautics Systems, Defense Systems and Mission Systems segments.Northrop Grumman Corporation Price, Consensus and EPS Surprise Northrop Grumman Corporation price-consensus-eps-surprise-chart | Northrop Grumman Corporation QuoteNorthrop Grumman’s Backlog CountThe company’s total backlog was $91.45 billion at the end of the third quarter compared with $89.74 billion at the end of the second quarter of 2025.NOC’s Segmental DetailsAeronautics Systems: This segment’s sales of $3.14 billion increased 6.1% year over year, driven by a $110 million increase from the ramp-up of the E-130J TACAMO program and a $105 million rise in the F-35 program due to higher materials volume.The unit’s operating income totaled $305 million compared with the operating income of $309 million in the third quarter of 2024. Its operating profit margin declined 70 basis points (bps) to 9.7%.Mission Systems: Sales in this segment jumped 9.6% to $3.09 billion. This was driven by increased sales from restricted advanced microelectronics programs, higher volumes in marine systems and the ramp-up of international ground-based radar programs.The unit’s operating income rose 32.1% to $515 million. The operating margin expanded 290 bps to 16.7%.Defense Systems: This segment’s sales jumped 14.4% year over year to $2.06 billion. The improvement was driven by higher volumes in armament programs, including military ammunition, increased volume from new awards in the Integrated Battle Command System portfolio, and stronger sales of Sentinel.The unit’s operating income improved 46.3% year over year to $234 million. The operating margin expanded 250 bps to 11.4%.Space Systems: Sales in this segment declined 6% to $2.7 billion due to the winding down of work on the restricted space and Next Generation Interceptor programs, as well as lower volumes from Space Development Agency satellite programs.The segment’s operating income decreased 13.6% year over year to $298 million. However, the operating margin declined 100 bps to 11%.Northrop Grumman’s Operational UpdateTotal operating income during the quarter totaled $1.24 billion, reflecting a significant rise from $1.12 billion in the prior-year quarter. This increase was due to higher operating income at Mission Systems and Defense Systems.NOC’s Financial ConditionNorthrop Grumman’s cash and cash equivalents as of Sept. 30, 2025 totaled $1.96 billion, down from $4.35 billion as of Dec. 31, 2024.Long-term debt (net of the current portion) amounted to $15.16 billion compared with $14.69 billion as of Dec. 31, 2024.Net cash provided by operating activities totaled $0.86 billion during the first nine months of 2025 compared with the cash inflow of $1.81 billion in the year-ago period.Northrop Grumman’s 2025 GuidanceNOC now expects its revenues in the range of $41.70-$41.90 billion, lower than the previous guidance in the band of $42.05-$42.25 billion. The Zacks Consensus Estimate for sales is pegged at $42.17 billion, above the company’s newly guided range.NOC now expects adjusted earnings in the band of $25.65-$26.05 per share, higher than its earlier guided band of $25.00-$25.40. The Zacks Consensus Estimate for earnings stands at $25.38 per share, below the company’s newly guided range.Northrop Grumman projects to generate adjusted free cash flow in the band of $3.05-$3.35 billion.NOC’s Zacks RankNOC currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming Q3 Defense ReleasesGeneral Dynamics Corporation GD is set to report third-quarter 2025 results on Oct. 24, before market open.The Zacks Consensus Estimate for GD’s earnings is pegged at $3.73 per share, implying year-over-year growth of 11.3%. The consensus estimate for its sales stands at $12.61 billion, indicating year-over-year growth of 8.1%.The Boeing Company BA is set to report third-quarter 2025 earnings on Oct. 29, before market open.The Zacks Consensus Estimate for BA’s loss is pegged at $1.83 per share. The consensus estimate for its sales is pegged at $21.64 billion, implying year-over-year growth of 21.3%.L3Harris Technologies LHX is set to report third-quarter 2025 results on Oct. 30, before market open.The Zacks Consensus Estimate for LHX’s earnings is pegged at $2.58 per share. The consensus estimate for its sales stands at $5.53 billion, indicating year-over-year growth of 4.6%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report L3Harris Technologies Inc (LHX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks