Defense Companies Grow Sales And Raise Outlooks [1][2][3]

The Tip Desk · October 27, 2026 · 1 min read

Lockheed Martin, Northrop Grumman and RTX raised 2026 earnings expectations, though stronger sales did not deliver uniform margin gains.

Lockheed Martin, Northrop Grumman and RTX all reported third-quarter 2026 sales growth. Lockheed Martin's backlog hit a record $292.0 billion, Northrop Grumman's totaled $109.6 billion, and RTX's defense backlog stood at $164 billion.

Margins offered a more uneven picture: Northrop Grumman's segment operating margin narrowed to 12.1% from 12.3% a year earlier, principally reflecting a favorable adjustment in the prior-year quarter. By contrast, RTX's Raytheon segment expanded its operating margin to 14.1% from 12.2%, with operating profit benefiting from improved productivity, higher volume and favorable mix.

All three raised full-year expectations: Lockheed Martin lifted its 2026 sales, earnings per share and free cash flow outlooks; RTX raised its 2026 adjusted sales, adjusted earnings per share and free cash flow guidance; and Northrop Grumman increased its 2026 segment operating income and MTM-adjusted earnings per share guidance. Lockheed Martin nevertheless warned that additional authorization and funding were needed for F-35 production work to avoid negative effects on future results and cash flows.

Lockheed Martin also translated its financial momentum into a higher shareholder payout, raising its dividend for the 24th consecutive year.

Sources: Lockheed Martin, Northrop Grumman and RTX earnings releases.