Investing.com -- Northrop Grumman shares rose more than 1% in premarket trading Tuesday after the defense contractor beat third-quarter profit estimates and raised its full-year earnings outlook.

Earnings per share for the quarter were $7.89, ahead of the $7.18 analysts expected, while sales rose 7% to $11.12 billion, in line with the consensus estimate.

Operating income was $1.27 billion, up 2%, and the operating margin was 11.4%. Segment operating margin came in at 12.1%.

Northrop said net awards totaled $16 billion, a book-to-bill ratio of 1.5 times, and backlog rose to $110 billion.

By segment, Aeronautics Systems led growth, with sales up 14% to $3.58 billion. Defense Systems rose 12% to $2.31 billion. Mission Systems grew 2% to $3.16 billion, and Space Systems rose 2% to $2.75 billion.

Northrop now expects 2026 earnings per share of $29.35 to $29.75, up from $28.60 to $29.10 and above the $28.98 consensus. It also raised segment operating income guidance by $65 million at the midpoint, to a range of $4.94 billion to $5.04 billion.

The revenue outlook was unchanged at $43.75 billion to $44.25 billion, roughly in line with the $44.05 billion consensus.

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