Northrop, RTX lift profit outlooks as military demand surges

Northrop Grumman and RTX raised their 2026 profit forecasts on October 20 as strong military demand pushed U.S. defense contractor backlogs to record levels, while commercial aerospace demand remained resilient. Northrop shares climbed 7.2% early and RTX gained 2.4%; GE Aerospace fell 4.9% after implied fourth-quarter earnings were below expectations. RTX’s Raytheon segment revenue rose 14%, driven by naval programs and land and air defense systems including Patriot, Standard Missile and Tomahawk. RTX set a new record backlog of $340 billion, up 36%, and expects adjusted 2026 earnings of $7.65 to $7.75 per share. Northrop expects adjusted earnings of $29.35 to $29.75, with backlog hitting $109.6 billion as of September 30.