Northrop Grumman Corporation (NYSE:NOC) reported upbeat third-quarter 2025 earnings on Tuesday, even as sales came in slightly below forecasts.
The aerospace and defense contractor, posted earnings of $7.67 per share, up from $7.00 a year earlier and ahead of analyst estimates of $6.46, benefited from robust segment operating performance.
Quarterly sales rose 4% year over year to $10.423 billion, up from $9.996 billion, though they came in slightly below Wall Street's estimate of $10.712 billion.
or full-year 2025, Northrop Grumman narrowed its outlook, trimming its sales guidance while raising its earnings forecast. The company now expects revenue between $41.7 billion and $41.9 billion, compared with its prior range of $42.05 billion to $42.25 billion, and below the analyst consensus of $42.17 billion.
However, Northrop lifted its Mark-to-Market (MTM) adjusted EPS guidance to $25.65 to $26.05 per share, up from the earlier range of $25.00 to $25.40, and above the Street estimate of $25.41 per share.
"The momentum we are building in our business drove a strong third quarter performance to achieve our financial objectives for mid-single-digit growth, expanding segment margins, and growing cash flows year over year. As a result of this performance and our positive outlook for the remainder of the year, we are once again increasing our 2025 EPS guidance," said Kathy Warden, chair, chief executive officer and president.
Northrop shares gained 0.7% to trade at $603.54 on Wednesday.
These analysts made changes to their price targets on Northrop following earnings announcement.
- BTIG analyst Andre Madrid maintained Northrop Grumman with a Buy and raised the price target from $630 to $680.
- Susquehanna analyst Charles Minervino maintained Northrop Grumman with a Positive and raised the price target from $650 to $690.
Considering buying NOC stock? Here’s what analysts think:
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