Northrop Grumman (NOC) news that moved the stock

What happened

Northrop Grumman reported third-quarter EPS of $7.89 on $11.1 billion in sales, beating the $7.19 consensus (sales were roughly in line with the $11.2 billion estimate). The company raised its 2026 EPS guidance to $29.35–$29.75 from $28.60–$29.10 and gave an initial 2027 outlook calling for 5–7% sales growth and $3.3–$3.5 billion of free cash flow — largely in line with Wall Street's expectations, per RBC. CEO Kathy Warden pointed to a record backlog. Shares were up 6.3% at $542.55 in morning trading while the S&P 500 was flat, a relief rally after the stock's 10% year-to-date decline and 30% drawdown since the Iran war began.

What happened

GE Aerospace reported third-quarter adjusted EPS of $2.25 on revenue of $13.3 billion, beating consensus of $2.01 on $12.9 billion; a year ago it earned $1.66 on $11.3 billion. Orders surged 49% year over year to $19 billion, well above sales, and commercial services revenue grew 17%. Management raised full-year guidance again: sales now expected to grow 19–20% (up from high-teens in July, and from 10–12% at the start of the year) and EPS to $8.00–$8.10 (up from $7.65–$7.85). Despite the beat-and-raise, shares fell 3.1% in early trading to $301.50 — on pace for the fourth straight post-earnings decline. Also reporting Tuesday morning: 3M beat EPS by 5% and nudged up full-year guidance; Hasbro raised its annual revenue forecast; Halliburton beat estimates and jumped 4%; and defense names Northrop Grumman and RTX ticked higher.

What happened

A broad wave of analyst rating changes hit Friday. KeyBanc Capital Markets upgraded Airbnb from sector weight to overweight with a $191 price target, citing product momentum; ABNB rose 1%+ on the news. RBC downgraded Northrop Grumman from overweight to sector weight and cut its price target, flagging a more cautious defense backdrop — a notable bearish call in an otherwise upbeat Friday ratings session. On Nike, Baird cut its rating to neutral (target $36) and Stifel lowered its target to $36 while keeping hold, both following the FQ1 revenue miss ($11.21B vs $11.32B est) and the full-year guidance reset to $1.15-$1.35 EPS vs ~$1.66 consensus; Bernstein kept an outperform on Nike post-earnings. Rothschild & Co Redburn upgraded Abbott Laboratories to buy on improved medtech visibility.

What happened

On Tuesday, September 29, the Department of War announced that the U.S. Navy selected Boeing to develop the F/A-XX, a sixth-generation carrier-based strike fighter, beating rival Northrop Grumman. The contract is valued at more than $20 billion for the full-scale development phase and covers multiple test aircraft for ground, airworthiness, systems, and weapons-integration testing. This is Boeing's second sixth-generation fighter program, following its 2025 win of the Air Force's F-47. Boeing shares rose about 2.3% in extended trading Tuesday; Northrop Grumman fell about 3.5-4.1%.