Defense Earnings Week Opens With Three Raised Forecasts and Two Record Backlogs

NEW YORK, Oct. 21, 2026 /CNW/ -- Equity Insider News Commentary - Three of the largest names in U.S. aerospace and defense reported third-quarter results on Tuesday, and all three raised their full-year guidance. Two of them reported record backlogs, including a $340 billion order book at one contractor that counts $164 billion of defense work. The reports open a busy stretch for the sector, with two more major contractors scheduled to report over the next eight days, and they land against a backdrop of rising defense commitments from NATO allies and a record U.S. budget request, even as Washington operates on a stopgap funding bill. Active Companies from around the markets with current developments this week include: RTX Corporation (NYSE: RTX), Northrop Grumman Corporation (NYSE: NOC), GE Aerospace (NYSE: GE), Lockheed Martin Corporation (NYSE: LMT), L3Harris Technologies, Inc. (NYSE: LHX).

The spending story starts with the targets governments have set. At the 2025 NATO Summit in The Hague, Allies committed to investing 5% of GDP annually on defence by 2035, with at least 3.5% of GDP going to core defence requirements. In Washington, the president's fiscal year 2027 budget request came in at $1.5 trillion, which the Pentagon described in April as the largest request in history, and it seeks funding to expand production capacity and build stockpiles for Patriot, Terminal High Altitude Area Defense and precision strike missiles, among other weapons.

A request is not an appropriation. For now, the government is funded by a continuing resolution signed on September 2 that runs through December 11, and according to the Congressional Research Service, the measure bars the Department of Defense from using that funding to accelerate production rates above those sustained with fiscal year 2026 funds. That puts more weight on the contracts companies already hold, and on the backlogs those contracts build, as this earnings season unfolds.

Investors did not treat Tuesday's three reports the same way. Northrop Grumman shares rose 4.57% to $534.00 and RTX gained 0.64% to $193.34, while GE Aerospace fell 3.67% to $299.87 even after raising its guidance, according to Stock Analysis data.

A raised forecast does not guarantee a higher share price, and the chart can show how investors are leaning before the next headline lands. Readers who want to learn to read those signals can get the free Knowledge is Power guide from Stock Preachers at equity-insider.com/.

In other industry developments and happenings in the market this week include:

RTX Corporation (NYSE: RTX)

RTX reported third-quarter sales of $25.0 billion, up 11% from a year earlier and up 12% organically, and adjusted EPS of $2.26, up 33%, a figure that includes $0.25 from IEEPA cost recovery. Its backlog reached $340 billion, including $164 billion of defense, and during the quarter it was awarded Tomahawk and AMRAAM multi-year undefinitized production contracts. RTX raised its 2026 outlook for adjusted sales to $97.0 billion to $97.5 billion, up from $95.0 billion to $96.0 billion, and for adjusted EPS to $7.65 to $7.75, up from $7.10 to $7.25.

"Demand for our products remains robust with over $81 billion of new commercial and defense awards, resulting in a record backlog of $340 billion," said RTX Chairman and CEO Chris Calio.

Northrop Grumman Corporation (NYSE: NOC)

Northrop Grumman reported third-quarter sales of $11.1 billion, up 7%, and diluted EPS of $7.89. Net awards totaled $16.4 billion for a book-to-bill ratio of 1.5x, and backlog totaled $109.6 billion. The company raised its 2026 guidance for MTM-adjusted EPS to $29.35 to $29.75, from $28.60 to $29.10, and for segment operating income to $4.94 billion to $5.04 billion, from $4.85 billion to $5.00 billion.

"In a complex world with the growing need for solutions that scale and perform, our customers continue to turn to Northrop Grumman, and we are delivering with urgency and innovation," said Kathy Warden, chair, chief executive officer and president of Northrop Grumman.

GE Aerospace (NYSE: GE)

GE Aerospace reported third-quarter total orders of $19.0 billion, up 49%, adjusted revenue of $13.3 billion, up 18%, and adjusted EPS of $2.25, up 36%. Its Defense & Propulsion Technologies segment booked orders of $4.3 billion, up 18%, on revenue of $3.5 billion, up 7%, and signed a contract worth up to $2.9 billion to provide ongoing support for the F414 engines powering the U.S. Navy's F/A-18 and EA-18G fleets. The company raised its 2026 guidance for adjusted EPS to $8.00 to $8.10, from $7.65 to $7.85, and for free cash flow to $9.1 billion to $9.4 billion, from $8.9 billion to $9.2 billion.

"We delivered strong results this quarter as solid demand drove orders up 49%, with strength in commercial services up 23%, total revenue up 18% and EPS up 36%," said GE Aerospace Chairman and CEO H. Lawrence Culp, Jr.

Lockheed Martin Corporation (NYSE: LMT)

Lockheed Martin will publish its third-quarter results before the market opens on Thursday, October 22, followed by a webcast at 8:30 a.m. ET. In its second-quarter report in July, the company posted a record backlog of $230 billion, inclusive of the multi-year contract to produce THAAD interceptors, and raised its 2026 outlook for sales to approximately $79.75 billion to $81.75 billion, from $77.5 billion to $80.0 billion, and for diluted EPS to approximately $29.95 to $30.65, from $29.35 to $30.25.

"We are delivering on our strategy, achieving a higher trajectory for our business and giving us confidence to raise our full year financial guidance," Lockheed Martin Chairman, President and CEO Jim Taiclet said in July.

L3Harris Technologies, Inc. (NYSE: LHX)

L3Harris will release its third-quarter results before the market opens on Thursday, October 29, with an earnings call at 10:30 a.m. ET. In its second-quarter report in July, the company posted orders of $7.3 billion and a book-to-bill of 1.2x that increased backlog to a record $42 billion, and it raised its 2026 guidance for revenue to $23.2 billion to $23.7 billion, from $23 billion to $23.5 billion, and for EPS to $11.80 to $12.00, from $11.40 to $11.60.

"Our purpose-built portfolio and focus on execution drove outstanding second quarter results," said Christopher Kubasik, Chairman and CEO of L3Harris, in July.

Defense stocks moved in both directions on Tuesday's reports, and two more contractors are still to come. Learn to read the setups behind moves like these with the free Stock Preachers guide, plus The Roadmap market reports, at equity-insider.com/.

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