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General Dynamics Raises Earnings Outlook Following Second-Quarter Beat
Wire

General Dynamics Raises Earnings Outlook Following Second-Quarter Beat

General Dynamics (GD) reported fiscal second-quarter results ahead of Wall Street estimates and increased its full-year earnings guidance amid strong order activity.Earnings grew to $4.24 a share in the quarter through July 5 from $3.74 a year earlier, ahead of the Street's projections for $3.96. Revenue rose 8.1% to $14.09 billion, surpassing the $13.52 billion modeled by analysts.For fiscal 2026, the aerospace and defense company raised its EPS outlook to between $16.80 and $16.90 from its prior range of $16.45 to $16.55. Analysts polled by FactSet are looking for $16.77."Our businesses delivered solid results in the quarter, with revenue growth across all four segments -- including double-digit increases in revenue and noteworthy margin expansion in aerospace and marine systems," Chief Executive Phebe Novakovic said in an earnings release Wednesday.Second-quarter orders totaled $20 billion, including $5.3 billion for the aerospace segment. The company saw "the strongest first half for orders for aerospace since 2022, (reflecting) very solid demand across the entire Gulfstream product line," Chief Financial Officer Kimberly Kuryea said on an earnings call, according to a FactSet transcript.Morgan Stanley expected increasing global defense spending to serve as a tailwind for General Dynamics. "The (Trump) administration's emphasis on shoring up the US shipbuilding industry in particular also bodes well for (General Dynamics') marine business, though improvements will take time to materialize," the brokerage said in a note to clients e-mailed July 15.Last week, other key industry players RTX (RTX), Lockheed Martin (LMT) and Northrop Grumman (NOC) raised their full-year guidance and posted second-quarter sales ahead of the Street's views.General Dynamics reported a 10.4% operating margin for the second quarter versus 10.5% in the linking quarter.The sequential decline came "despite the fact that operating margins by line of business all improved," President Danny Deep said on the call Wednesday. "This is attributable to a slightly disadvantageous mix, plus a modest increase in both (general and administrative expenses) and (research and development)."Price: $390.43, Change: $-2.76, Percent Change: -0.70%

$GD$LMT$NOC$RTX
Wire

Citigroup Adjusts Price Target on Northrop Grumman to $617 From $587, Maintains Buy Rating

Northrop Grumman (NOC) has an average rating of overweight and mean price target of $647.05, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)Price: $543.25, Change: $+9.77, Percent Change: +1.83%

$NOC
Wire

Baird Cuts Price Target on Northrop Grumman to $550 From $700

Northrop Grumman (NOC) has an average rating of overweight and mean price target of $670.90, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)Price: $511.08, Change: $-12.89, Percent Change: -2.46%

$NOC
Northrop Grumman Lifts Outlook as Second-Quarter Orders Boost Backlog to Record High
US Markets

Northrop Grumman Lifts Outlook as Second-Quarter Orders Boost Backlog to Record High

Northrop Grumman (NOC) raised its full-year guidance on Tuesday as strong second-quarter orders pushed the aerospace and defense technology company's backlog to a record high.The company now expects revenue of $43.75 billion to $44.25 billion for 2026, up from its prior range of $43.50 billion to $44 billion. It projects adjusted earnings per share at $28.60 to $29.10, compared with $27.40 to $27.90 previously expected. The FactSet-polled consensus puts full-year revenue at $44 billion and adjusted EPS at $27.94."This (revenue) outlook reflects a second half step up in sales that is similar to the profile we experienced last year," Chief Financial Officer John Greene said during an earnings call, according to a FactSet transcript. "With this in mind, we anticipate mid to high single-digit year-over-year sales growth in (the third quarter)."The defense contractor reported second-quarter net awards of $20 billion, lifting its total backlog to a record $104.69 billion. Major awards included $7.6 billion for the Sentinel system, $4.3 billion for restricted programs and $1 billion for F-35."We expect continued strong bookings for the remainder of the year, as well as increased momentum in government outlays," Chief Executive Kathy Warden said in the earnings call. "These dynamics strengthen our confidence and outlook for accelerating sales growth in the second half of the year."The company's second-quarter sales increased 5% annually to $10.88 billion, above the FactSet-polled consensus estimate of $10.80 billion. Earnings per share fell to $7.68 from $8.15 a year earlier.Northrop's aeronautics, defense, mission and space system businesses all logged revenue gains year-over-year.Shares of Northrop declined 2.1% in Tuesday trade, and have fallen 10% so far this year.Aerospace and defense companies RTX (RTX) and Lockheed Martin (LMT) are scheduled to report quarterly results on Thursday.Price: $509.92, Change: $-14.04, Percent Change: -2.68%

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Stocks Rise Pre-Bell as Investors Await More Earnings, Monitor Middle East Developments
US Markets

Stocks Rise Pre-Bell as Investors Await More Earnings, Monitor Middle East Developments

US equity futures were tracking in the green on Tuesday as traders await the latest batch of corporate earnings and assess the latest developments in the Middle East.The S&P 500 rose 0.5%, the Dow Jones Industrial Average gained 0.3% and the Nasdaq added 1.3% in premarket activity. The indexes closed the previous trading session lower.Charles Schwab (SCHW), Danaher (DHR), 3M (MMM), Northrop Grumman (NOC), General Motors (GM), D.R. Horton (DHI), Genuine Parts (GPC) and Hasbro (HAS) are some of the major companies scheduled to release their latest financial results before the bell.Interactive Brokers (IBKR) and Alaska Air (ALK) post earnings after the markets close, among others."The reporting calendar is shifting beyond the first wave of money-center banks toward large tech, industrial and consumer names," Tigress Financial said in a note Monday. "The narrative will increasingly focus on whether (artificial intelligence) platforms, cloud providers and key cyclicals can match the strong bank prints without sparking renewed worries about margins or demand."The UK Maritime Trade Operations said Tuesday it has received multiple reports that a tanker was struck by an unknown projectile in the Strait of Hormuz. The US Central Command said Monday its forces completed their latest round of strikes against Iran.A senior official from Tehran told Reuters that mediators have forwarded a 10-day ceasefire proposal to Iran in an attempt to revive the interim deal reached with the US last month. Houthi militants in Yemen on Monday declared a maritime embargo against Saudi Arabia, effective immediately, CNBC reported, citing Yemen News Agency.President Donald Trump said Monday that "every time Iran kills an American soldier they will pay for that killing many times over." The US recently confirmed the passing of at least three service members during recent fighting with Iran.West Texas Intermediate crude oil edged up 0.3% to $83.49 a barrel before the opening bell, while Brent increased 0.4% to $89.60.Trump signed three proclamations on Monday to impose 50% tariffs on the imports of motor vehicles, alcohol and dairy products from Canada, in response to its "discriminatory treatment of American products," according to the White House. The tariffs are set to come into effect after 30 days.Treasury yields were moving downwards in premarket action, with the two-year rate retreating 1.9 basis points to 4.2% and the 10-year rate off 0.4 basis points to 4.59%.Gold advanced 1.4% to $4,073 per troy ounce, while bitcoin climbed 1.9% to $66,296.

Dow JonesNasdaq CompositeS&P 500$ALK$DHI$DHR$GM$GPC$HAS$IBKR$MMM$NOC$SCHW
Wire

Northrop Grumman, Airbus Collaborate to Bolster NATO's Force Fleet With MQ-4C Triton UAV

Northrop Grumman (NOC) said Wednesday it entered a collaboration with Airbus Defence and Space to bolster NATO's Intelligence, Surveillance, and Reconnaissance force fleet with the MQ-4C Triton unmanned aerial vehicle.Financial details weren't provided.The development is expected to boost transatlantic maritime surveillance and facilitate rapid capability deployment, the company said.The companies are also working with the broader European industry to enable a more swift implementation of the initiative, Northrop said.Price: $530.50, Change: $+1.83, Percent Change: +0.35%

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Wire

Deutsche Bank Cuts Price Target on Northrop Grumman to $691 From $778, Maintains Buy Rating

Northrop Grumman (NOC) has an average rating of overweight and mean price target of $728.45, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)Price: $554.51, Change: $-12.50, Percent Change: -2.20%

$NOC
Wire

L3Harris Technologies Increases 2026 Earnings Guidance Following First-Quarter Beat

L3Harris Technologies (LHX) raised its full-year earnings outlook Thursday after reporting stronger-than-expected fiscal first-quarter results amid sales growth across segments.The aerospace and defense technology company now expects 2026 earnings of $11.40 to $11.60 a share, compared with its prior guidance range of $11.30 to $11.50. Analysts in a FactSet poll are looking for $11.59. L3Harris continues to expect full-year revenue between $23 billion and $23.5 billion, while Wall Street is projecting $23.44 billion."We delivered a strong start to the year, with robust orders and revenue growth, coupled with progress across our strategic priorities," Chief Executive Christopher Kubasik said in a statement.For the quarter ended April 3, EPS rose to $2.72 from $2.04 a year earlier, surpassing the consensus of $2.53. Revenue grew 12% to $5.74 billion, also ahead of the Street's $5.42 billion views.Sales in the space and mission systems division jumped 24% to $2.99 billion, while the missile solutions unit saw an 18% increase to $990 million. The communication and spectrum dominance unit's revenue grew 3% to $1.86 billion."The global security environment is evolving rapidly, and the implications for our customers are increasingly clear," Kubasik said on an earnings conference call, according to a FactSet transcript. "Across the Middle East, Europe and the Indo-Pacific, the threat environment is driving greater urgency around readiness, resilience and modernization."Late Wednesday, L3Harris said it confidentially filed a draft registration statement with the US Securities and Exchange Commission for a planned initial public offering of its missile solutions business. The IPO's size and pricing details have yet to be determined. Earlier this year, the company said the US government planned to invest $1 billion in the missile solutions unit."The IPO monetizes the Aerojet acquisition while creating a pure-play missile/propulsion vehicle with an unprecedented (Department of War) anchor investment," Wedbush Securities said in a note to clients Thursday. "We view this as incrementally positive; the stock should benefit as IPO pricing visibility improves and the market assigns sum-of-the-parts value to (missile solutions) separately."On Wednesday, General Dynamics (GD) raised its full-year earnings outlook after reporting fiscal first-quarter results above the Street's estimates. Recently, Lockheed Martin (LMT) logged March-quarter results that missed the Street's views, while fellow aerospace and defense companies RTX (RTX) and Northrop Grumman (NOC) delivered beats.Price: $320.70, Change: $-0.70, Percent Change: -0.22%

$GD$LHX$LMT$NOC$RTX
Wire

General Dynamics Raises Full-Year Earnings Outlook After First-Quarter Beat; Shares Jump

General Dynamics (GD) increased its full-year earnings outlook after reporting fiscal first-quarter results above Wall Street's estimates, sending the company's shares surging Wednesday.The aerospace and defense company now projects earnings at $16.45 to $16.55 a share for fiscal 2026, up from its previous guidance range of $16.10 to $16.20, President Danny Deep said on an earnings conference call, according to a FactSet transcript. The current consensus on FactSet is for $16.30."Given our strong start, we thought it would be prudent to revise our EPS guidance to reflect our performance thus far," Deep told analysts. "Looking at the year from a quarterly perspective, the first and fourth quarters would represent the high points, favoring the fourth quarter."EPS climbed to $4.10 for the quarter through April 5 from $3.66 a year earlier, topping the Street's view for $3.68. Revenue improved 10% to $13.48 billion, exceeding the average analyst estimate on FactSet of $12.70 billion.General Dynamics' shares were up 11% in Wednesday afternoon trade. The stock has increased 2.9% so far this year.Marine systems business revenue jumped 21% year over year to $4.34 billion in the quarter, while the aerospace division saw an 8.4% gain. Sales in the combat systems and technologies units rose more than 4% each.Orders amounted to $26.6 billion in the quarter on a companywide basis, while total estimated contract value -- the sum of all backlog components -- was $188.4 billion at the end of the quarter. The company said this includes backlog of $130.8 billion.However, General Dynamics saw numerous transactions slow down at the end of the quarter as a result of the conflict in the Middle East, Deep told analysts."We were having a spectacular quarter from an order standpoint across the board here in the US, as well as the Middle East," Deep said. "As the conflict started to take form, we saw some slowing in order intake in the Middle East."Last week, Lockheed Martin (LMT) reported first-quarter results that missed the Street's views, while fellow aerospace and defense companies RTX (RTX) and Northrop Grumman (NOC) delivered beats.Price: $347.32, Change: $+33.64, Percent Change: +10.72%

$GD$LMT$NOC$RTX
Wire

Morgan Stanley Adjusts Price Target on Northrop Grumman to $745 From $765, Maintains Overweight Rating

Northrop Grumman (NOC) has an average rating of overweight and mean price target of $735.57, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)Price: $578.92, Change: $+3.82, Percent Change: +0.66%

$NOC
US Markets

Lockheed Martin First-Quarter Results Miss Street Views; Shares Fall

Lockheed Martin's (LMT) first-quarter earnings decreased more than expected, while its sales fell short of market estimates, sending the defense contractor's shares lower Thursday.Earnings dropped to $6.44 a share for the March quarter from $7.28 a year earlier, below the FactSet-polled consensus of $6.73. Sales rose to $18.02 billion from $17.96 billion, but missed Wall Street's views for $18.22 billion.The bottom line decline was due to lower profit and marked market losses, while sales were impacted by a shortened fiscal period versus the prior year, Chief Financial Officer Evan Scott said during an earnings call Thursday, according to a FactSet transcript."First-quarter 2026 results also reflect unfavorable performance adjustments at aeronautics associated with F-16 and C-130," Scott said. "Design and development delays temporarily impacted F-16."Lockheed Martin shares were down 5.4% in afternoon trade, bringing its year-to-date to gains to 8.7%.First-quarter revenue in the rotary and mission systems business fell to about $3.99 billion from $4.33 billion sequentially, while the aeronautics division saw a 1% drop. Sales in the missiles and fire control business grew 8%, while the space segment posted a 7% gain.The company continues to expect 2026 EPS between $29.35 and $30.25 and sales to be in a range of $77.50 billion to $80 billion. The Street is looking for EPS of $29.92 and sales of $79.22 billion."We expect sales to grow in the second quarter and throughout the remainder of the year, supporting our full-year growth outlook," Scott told the analysts.Lockheed Martin recently signed a $1.5 billion contract with the Peruvian Air Force for 12 Block 70 F-16 fighter aircraft, with an opportunity for "a second squadron" of 12 additional jets, Chief Executive Jim Taiclet said on the call.Earlier in the week, aerospace and defense companies RTX (RTX) and Northrop Grumman (NOC) recorded stronger-than-expected results for the first quarter.Price: $530.17, Change: $-25.27, Percent Change: -4.55%

$LMT$NOC$RTX
Wire

UBS Adjusts Price Target on Northrop Grumman to $745 From $806, Maintains Buy Rating

Northrop Grumman (NOC) has an average rating of overweight and mean price target of $738.14, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)Price: $590.73, Change: $+1.11, Percent Change: +0.19%

$NOC
Wire

Northrop Grumman Remains Well-Positioned Across Strategic Programs and Defense Portfolios, RBC Says

Northrop Grumman (NOC) remains well-positioned across strategic programs and its broader weapons and missile defense portfolios, despite the uncertainty over free cash flow in 2027 and 2028 weighing on the stock, RBC Capital Markets said in a note Wednesday.The analysts noted that the commentary on the B-21 and Sentinel programs was positive. The Sentinel program is on track for low-double-digit growth this year as it moves towards first flight in 2027, the brokerage highlighted.RBC added that Northrop has pulled back its earlier 2027-2028 FCF guide, as it sees an incremental $2.5 billion in investments to support the B-21 ramp, which weighed on the stock.Northrop continues to guide to 2026 sales of $43.5 billion to $44 billion and FCF of $3.1 billion to $3.5 billion. RBC revised its revenue estimate slightly to $44.1 billion and maintained its FCF estimate of $3.3 billion.RBC maintained an outperform rating on Northrop Grumman with a price target of $750.Price: $591.55, Change: $-19.58, Percent Change: -3.20%

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Research

Research Alert: CFRA Maintains Buy Recommendation On Shares Of Northrop Grumman Corporation

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We decrease our 12-month target price by $17 to $736, as we assume NOC will trade at P/E multiple of 23.0x our 2027 EPS estimate, a premium to NOC's three-year average forward P/E of 19.6x but close to the peers' average forward P/E of 23.8x. We trim our 2026 EPS estimate by $1.04 to $28.61 and also cut our 2027 EPS forecast by $0.76 to $31.99. NOC's fundamentals remain robust, anchored by a record $96 billion backlog providing over two years of revenue visibility. The company reaffirmed 2026 guidance for mid-single-digit organic sales growth and segment operating margins of low- to mid-11%. We see strong multi-year momentum driven by four key growth engines: B-21 (approaching 10% of revenue with production accelerating 25%), Sentinel ICBM (6%-7%, growing toward 10%), missile defense (10%), and weapons/munitions (10%). With capacity investments enabling NOC to scale production and the company achieving improved ROIC on major programs, we remain confident in sustainable growth extending into 2027 and beyond.

$NOC
US Markets

RTX, Northrop Beat First-Quarter Views Amid Broad-Based Revenue Gains

RTX (RTX) and Northrop Grumman (NOC) on Tuesday reported stronger-than-expected first-quarter results, driven by revenue gains across different businesses.Aerospace and defense company RTX's adjusted earnings increased to $1.78 per share from $1.47 a year earlier, while beating the FactSet-polled consensus of $1.51. Net sales jumped 9% to $22.08 billion, ahead of Wall Street's view for $21.46 billion."RTX delivered a very strong start to 2026 with organic sales and adjusted operating profit growth across all three segments," RTX Chief Executive Chris Calio said in a statement.Sales for the engine segment, Pratt & Whitney, rose 11% to $8.17 billion, while RTX's Raytheon defense solutions division grew 10% to $6.95 billion. Collins Aerospace revenue increased 5% to $7.60 billion.Separately, Northrop Grumman reported first-quarter EPS of $6.14, up from $3.32 a year earlier and higher than the Street's $6.05 view. Sales increased to $9.88 billion from $9.47 billion, above the $9.75 billion projected by analysts. Northrop's aeronautics, defense and mission system businesses all logged revenue gains year-over-year."Northrop Grumman delivered strong first-quarter results, with continued robust bookings, mid-single-digit organic sales growth, and solid operating performance, underscoring our ability to deliver in today's unprecedented global demand environment," CEO Kathy Warden said.RTX lifted its 2026 adjusted sales outlook to between $92.5 billion and $93.5 billion from $92 billion to $93 billion previously expected. Adjusted EPS is pegged at $6.70 to $6.90, up from an earlier guidance of $6.60 to $6.80. Analysts expect $93.58 billion in full-year revenue and $6.85 in adjusted EPS."Given our first-quarter performance and the strength we're seeing in our defense business, we are increasing adjusted sales and EPS in our full-year outlook," Calio said.Northrop maintained its sales and adjusted EPS guidance for the full year. The company expects revenue in the range of $43.5 billion to $44 billion and earnings of $27.40 to $27.90. Wall Street anticipates the company reporting $43.94 billion in revenue this year and $27.97 in adjusted EPS.Shares of RTX declined 4% in Tuesday trading, while those of Northrop were down 5.6%.Price: $188.23, Change: $-7.57, Percent Change: -3.86%

$NOC$RTX
Research

Research Alert: Northrop Grumman Posts Q1 Beat, Bolstered By B-21 Recovery

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Northrop Grumman Corporation (NOC) posted strong Q1 results with sales up 4.4% Y/Y to $9.9B (beating consensus by $125M) and EPS surging 85% Y/Y to $6.14 ($0.14 above consensus), primarily due to the absence of prior year's $477M B-21 loss provision. Aeronautics Systems swung from a $183M operating loss to $305M profit, reflecting operational recovery and B-21 production agreements. The quarter reinforced our view that NOC's performance is stabilizing following last year's B-21 charge, with underlying growth supported by program ramps across strategic deterrence and munitions. Management emphasized B-21 capacity expansion and reaffirmed 2026 FCF guidance of $3.1B-$3.5B, though it suspended buybacks to fund organic investments. We believe the $95.6B backlog provides multiyear revenue visibility, though execution risks remain on complex development programs. In our view, the company's growth trajectory depends heavily on B-21 production acceleration and Sentinel baseline stability over the next 12-18 months.

$NOC
US Markets

Stocks Rise Pre-Bell as Traders Weigh Uncertainty Over US-Iran Talks

US equity futures were pointing higher on Tuesday as traders monitor uncertainty over a potential fresh round of talks between the US and Iran and await the latest batch of corporate earnings.The S&P 500 and the Dow Jones Industrial Average rose 0.2% each in premarket activity, while the Nasdaq added 0.3%. The S&P 500 and the Nasdaq finished the previous trading session lower, with the latter snapping a 13-day winning streak, while the Dow was little changed.President Donald Trump said Vice President JD Vance is ready to leave for Pakistan for a second round of peace talks with Iran, according to a Bloomberg report. Iran, however, hasn't publicly confirmed if any representative from its side will participate in the latest proposed negotiations."We do not accept negotiations under the shadow of threats, and in the past two weeks, we have prepared to reveal new cards on the battlefield," Iranian Parliament Speaker Mohammad Bagher Ghalibaf said in a Monday post on X. Iran's President Masoud Pezeshkian said in a social media post that the country still has "deep historical mistrust" towards the US government's conduct.Trump said Monday that the US is not likely to extend its current ceasefire with Iran if a deal isn't agreed, Bloomberg News reported. The ceasefire is set to expire "Wednesday evening Washington time," Trump reportedly said."I'm not going to be rushed into making a bad deal," Trump said in a phone interview, according to Bloomberg. "We've got all the time in the world."The US-Iran ceasefire may be extended by up to two weeks, though it will take much longer to hammer out a complete peace agreement, Macquarie Group said in a note on Monday.West Texas Intermediate crude oil declined 1.2% to $88.55 a barrel before the opening bell, while Brent decreased 0.9% to $86.68."Oil prices are being whipsawed by developments in the Middle East once again, with what appears to be de-escalation quickly turning to re-escalation," ING Bank said in a Monday report.Treasury yields were moving upwards in premarket action, with the two-year rate gaining 2.1 basis points to 3.74% and the 10-year rate edging 0.6 basis points higher to 4.26%.GE Aerospace (GE), UnitedHealth (UNH), Danaher (DHR), Northrop Grumman (NOC), 3M (MMM), D.R. Horton (DHI), Tractor Supply (TSCO) and Genuine Parts (GPC) are scheduled to report their latest financial results before the bell, among others.Shares of Amazon.com (AMZN) inclined 2.7% pre-bell after the e-commerce giant said it will invest $5 billion in artificial intelligence startup Anthropic and up to another $20 billion in the future if certain commercial milestones are met.Apple (AAPL) nudged 0.3% lower after the iPhone maker announced that Tim Cook will step down as chief executive and become executive chairman, with hardware engineering veteran John Ternus set to succeed him as CEO. Alaska Air (ALK) fell 2.9% after reporting its latest quarterly results.Tuesday's economic calendar has the retail sales report for March at 8:30 am ET, followed by the pending home sales index for the same month at 10 am.Federal Reserve Chair nominee Kevin Warsh's hearing before the Senate Banking committee is slated for 10 am. Fed Governor Christopher Waller is expected to speak at 2:30 pm.Gold slipped 0.6% to $4,801 per troy ounce, while bitcoin traded up 0.4% at $76,575.

Dow JonesNasdaq CompositeS&P 500$AAPL$ALK$AMZN$DHI$DHR$GE$GPC$MMM$NOC$TSCO$UNH

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