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

RBC Capital kept its Sector Perform rating on Northrop Grumman with a $550 price target, suggesting a 3% upside. The company reaffirmed its 2026 sales guidance of $43.75–$44.25B and raised segment operating income and adjusted EPS guidance, forecasting growth across all segments for 2027.

RBC Capital kept its Outperform rating on GE Aerospace with a $375 price target, suggesting 25.1% upside from the Oct 20 close. The company reported 17% YoY growth in services revenue and 23% increase in services orders. 3Q26 adjusted revenue was $13.3B, up 18% YoY, with adjusted EBIT of $3.0B and a 22.5% margin.

GE Aerospace (GE) shares fell 4% despite strong Q3 results, with adjusted earnings of $2.25 per share and revenue of $13.29 billion, both above expectations. The company raised its 2026 earnings forecast but signaled a softer Q4 and higher 2027 costs, causing investor concern. The stock is trading at $300, below its 52-week high of $389 and price target of $391.

Guggenheim raised its price target on Northrop Grumman (NOC) to $640 from $612, maintaining a Buy rating. The stock surged 7.7% over the past week. NOC provided 2027 guidance with 5% to 7% revenue growth and margin expansion. Q3 earnings beat estimates at $7.89 per share, and full-year guidance was raised. Baird upgraded NOC to Outperform with a $675 price target.

Baird upgraded Northrop Grumman (NOC) to 'Outperform' from 'Neutral', raising its price target to $675 from $550. The firm cited NOC's strong backlog, Q3 earnings beat, and multi-year growth targets. NOC shares gained over 9% in the past week. 14 of 26 analysts rate NOC a 'Buy' or 'Strong Buy'.

RBC Capital lowered its price target on GE Aerospace from $400 to $375 but maintained an Outperform rating. The adjustment follows a similar move by Susquehanna, which reduced its target to $400 from $430. GE Aerospace's stock closed at $299.87, down 3.67%.