Q3 25 EPS
$7.67
BEAT +18.73%
Est. $6.46
Q3 25 Revenue
$10.42B
vs S&P Since Q3 25
-11.6%
TRAILING MARKET
NOC -4.2% vs S&P +7.4%
Market Reaction
Did NOC Beat Earnings? Q3 2025 Results
Northrop Grumman delivered a blowout third quarter in 2025, posting diluted EPS of $7.67 against a consensus estimate of $6.46, an 18.73% beat, as the defense giant demonstrated that demand for advanced military systems remains firmly intact. Revenue… Read more Northrop Grumman delivered a blowout third quarter in 2025, posting diluted EPS of $7.67 against a consensus estimate of $6.46, an 18.73% beat, as the defense giant demonstrated that demand for advanced military systems remains firmly intact. Revenue climbed 4.3% year over year to $10.42 billion, with organic growth running even hotter at 5% after stripping out divested training services. The standout driver behind the earnings strength was a combination of Mission Systems and Defense Systems, where favorable EAC adjustments and contract mix pushed segment operating margins sharply higher, Mission Systems alone expanded its margin rate to 16.7% from 13.8%, fueling a 32% surge in operating income. Free cash flow jumped 72% to $1.26 billion, underscoring the operational momentum. Net awards of $12.20 billion produced a healthy 1.17x book-to-bill ratio, keeping the $91.45 billion backlog well-stocked. Looking ahead, Northrop raised its full-year MTM-adjusted EPS guidance by $0.65 to a range of $25.65–$26.05, even as it trimmed its sales outlook modestly to $41.70–$41.90 billion, with CEO Kathy Warden signaling growth across all four business segments in 2026.
Key Takeaways
- • Mission Systems operating margin expansion to 16.7% driven by $68 million favorable EAC adjustment in restricted advanced microelectronics
- • Defense Systems 46% operating income growth from higher net EAC adjustments and shift toward fixed-price contracts
- • Organic sales growth of 5% excluding divested training services
- • Strong demand for armament programs and military ammunition
- • F-35 program materials volume increase
- • E-130J TACAMO ramp-up contributing $110 million incremental sales
- • Improved trade working capital driving 43% increase in operating cash flow
NOC YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
NOC Revenue by Segment
With YoY comparisons, source: SEC Filings
“The momentum we are building in our business drove 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.”
— Kathy Warden, Q3 2025 Earnings Press Release
NOC Earnings Trends
NOC vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
NOC EPS Trend
Earnings per share: estimate vs actual
NOC Revenue Trend
Quarterly revenue: estimate vs actual
NOC Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $6.14 | — | $9.88B | +1.28% |
| Q4 25 BEAT FY | $6.96 | $7.23 | +3.88% | $11.71B | — |
| FY Full Year | — | $26.34 | — | $41.95B | — |
| Q3 25 BEAT | $6.46 | $7.67 | +18.73% | $10.42B | — |
| Q2 25 BEAT | $6.80 | $8.15 | +19.85% | $10.35B | — |
| Q1 25 MISS | $6.26 | $3.32 | -46.96% | $9.47B | — |