Earnings: Will US rearmament trigger a surge in defense spending?

What happened: Northrop Grumman (NOC) and RTX (RTX) reported strong third quarter results and raised their annual profit forecasts, citing demand for military aircraft, missiles and defense programs. Key numbers: Northrop EPS $7.89 vs $7.19 expected; sales $11.122 billion. RTX adjusted EPS $2.26; sales $24.965 billion. Why it matters: The content frames rearmament, replacing Patriot, Tomahawk and THAAD supplies used in Ukraine and Iran, as the driver, with customers placing orders ahead of the 2027 funding bill and the benefit accruing to the prime contractors. Market: +6.0% today ($541.56), -6.8% YTD, 0.9x vol — as of 15:17 UTC Verified: Q3_2026 (Oct 20) EPS $7.89 vs $7.18 est, +9.9% beat; next print ~Jan 19

Northrop Grumman (NOC) and RTX (RTX) reported strong third quarter results and raised their annual profit forecasts, citing demand for military aircraft, missiles and defense programs.

The content frames rearmament, replacing Patriot, Tomahawk and THAAD supplies used in Ukraine and Iran, as the driver, with customers placing orders ahead of the 2027 funding bill and the benefit accruing to the prime contractors. Market: +6.0% today ($541.56), -6.8% YTD, 0.9x vol — as of 15:17 UTC Verified: Q3_2026 (Oct 20) EPS $7.89 vs $7.18 est, +9.9% beat; next print ~Jan 19