Three U.S. defense heavyweights are due to report quarterly earnings this week in a pivotal moment in world affairs.
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The peace agreement in the Middle East and what appear to be serious moves from President Trump to force a ceasefire in Ukraine could have demand implications on defense stocks.
However, there should still be plenty of willing buyers of defense equipment in an increasingly complex world. The events of the last few years have clearly moved the dial on defense spending as leaders, particularly in Europe, look to beef up their military capabilities.
Is LMT a Good Stock to Buy Ahead of Q3 Earnings?
Lockheed Martin (LMT) is set to report its Q3 results on October 21. Wall Street analysts expect the company to post quarterly earnings of $6.32 per share, indicating a year-over-year decline of 7.6%. Revenues are expected to come in at $18.56 billion, up 8.5% from the same period last year.
Demand for F-35 jets, missile programs and helicopters has likely boosted overall sales. However, analysts said that charges related to a handful of Lockheed’s classified programs, as well as lingering losses arising from its two helicopter programs- Canadian Maritime Helicopter Program (CMHP) and Turkish Utility Helicopter Program (TUHP), and tax liabilities will hurt the bottom-line.
Can LMT beat these earnings forecasts? As can be seen below, it has a decent track record of doing just that.
Is NOC a Good Stock to Buy Ahead of Q3 Earnings?
Northrop Grumman (NOC) is scheduled to announce its results for the third quarter of 2025 tomorrow. Wall Street expects NOC to report quarterly earnings of $6.47 per share in its upcoming release, pointing to a year-over-year decline of 7.6%. It is anticipated that revenues will amount to $10.7 billion, marking an increase of 7% compared to the year-ago quarter.
Higher sales of B-21, E-130J TACAMO and F-35 jet programs are likely to have boosted the third-quarter revenue performance of its Aeronautics Systems segment. Higher volume on marine systems, international ground-based radar, along with electronic warfare (EW) programs, will also boost revenues.
However, lower operating income at its Space Systems arm, corporate unallocated expenses of $100 million, as well as a higher estimated tax rate, are projected to hurt NOC’s overall bottom-line results.
How Will RTX Fare in Q3?
Raytheon Technologies Corporation (RTX) is expected to report its Q3 earnings report tomorrow. Wall Street expects it to report earnings of $1.42 per share, indicating a year-over-year decline of 2.1%. Revenues of $21.48 billion, indicate a year-over-year increase of 6.9%.
On the defense side, solid sales of military engines for prominent military programs like F-35 and integrated air and missile defense systems, will have helped revenues.
However, the impact of higher tariffs is expected to have hurt its bottom line.
Wall Street’s Take on LMT, NOC and RTX
Using the TipRanks Stock Comparison Tool, RTX offers the highest upside potential from current levels with 11%.
