Northrop Grumman Corporation reported third‑quarter 2025 results on Tuesday, October 21, 2025. The company posted diluted earnings per share of $7.67, up 10% from the $7.00 reported a year earlier and beating the consensus estimate of $6.46. Revenue rose 4% year‑over‑year to $10.423 billion, slightly below the $10.712 billion forecasted by analysts.
In its earnings call, Northrop raised its full‑year 2025 earnings‑per‑share guidance to $25.65–$26.05, an increase of $0.65 from the prior range of $25.00–$25.40. The company also trimmed its full‑year revenue guidance to $41.7–$41.9 billion from the previous $42.05–$42.25 billion, citing delayed award timing on certain programs. Despite the revenue miss, the company reaffirmed its free‑cash‑flow outlook of $3.05–$3.35 billion for the year.
The results reflect continued strength across Northrop’s four operating segments, with the Defense Systems division posting a 14% revenue increase and a 11.4% operating margin. The company highlighted progress on key programs such as the B‑21 Raider, Sentinel, and Integrated Battle Command System, and noted that the second B‑21 aircraft entered flight testing. The earnings beat and guidance upgrade underscore Northrop’s ability to generate robust cash flow and support its long‑term investment in capacity and technology.
The earnings release also confirmed the company’s commitment to returning free cash flow to shareholders, with a 100% payout plan that includes dividends and share repurchases. Analysts noted that the guidance adjustments reflect a cautious approach to program timing while maintaining confidence in long‑term demand for Northrop’s advanced defense solutions.
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