Northrop Grumman (NYSE: NOC) Soars on Strong Q3 Earnings and Robust Backlog

Northrop Grumman (NYSE: NOC) is a leading U.S. defense company that specializes in building advanced aircraft, missile systems, and space systems. Peter Arment of Robert W. Baird has set a $675.00 price target for the stock, which represents approximately 26.4% above its $534.00 share price at the time the target was published.

The positive outlook comes as Northrop Grumman reported impressive third-quarter 2026 sales of $11.10 billion, marking a 7% increase from the previous year. This sales growth was broad-based, with all four business segments contributing, including a notable 14% growth in Aeronautics and 12% in Defense Systems. The aerospace and defense contractor also reaffirmed its full-year sales forecast, projecting revenues between $43.75 billion and $44.25 billion.

Northrop Grumman secured $16.40 billion in new awards during the quarter. Its substantial backlog—representing contracted work yet to be delivered—reached an impressive $109.60 billion, or about $110.00 billion. A large backlog provides the company with a clearer view of future revenue streams, although actual revenue recognition depends on the completion schedule of this work.

Earnings per share (EPS) for the quarter rose 3% to $7.89, surpassing Wall Street’s expectation of $7.18. Adjusted free cash flow, a key measure of cash generated after operating costs and capital expenditures, surged more than 40% to $1.80 billion. This figure notably includes $371.00 million from the sale of a B-21 test asset.

Shares of Northrop Grumman rose more than 4% on Tuesday following the release of these strong financial results, as highlighted by The Motley Fool. Trading at $534.00, the stock was up $23.35, or 4.57%, for the day. Its 52-week trading range stands between $470.06 and $774.00, indicating significant market activity for the defense stock.