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RTX, GE Aerospace and Northrop Lead Defense and Aerospace Earnings Sweep as GM Beats But Stock Tumbles on Guidance Concerns

By Market Flux···2 min read
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A wave of major third-quarter earnings on October 20 was headlined by outsized beats from defense and aerospace companies, with RTX delivering the most striking result: adjusted EPS of $2.26 against an estimate of $1.79, on revenue of $24.97 billion versus the $24.08 billion consensus. RTX raised its full-year adjusted EPS guidance to $7.65-$7.75 from $7.10-$7.25 and lifted its full-year sales outlook to $97.0-$97.5 billion from $95.0-$96.0 billion, citing robust demand for missiles and commercial air travel. The company's backlog reached a record $340 billion, including $164 billion in defense and $176 billion in commercial orders, supported by new Tomahawk and AMRAAM multi-year production contracts.

GE Aerospace matched the momentum, posting adjusted EPS of $2.25 against a $2.01 estimate on revenue of $13.29 billion, well above the $12.86 billion forecast. Commercial engines and services revenue surged 21% to $10.34 billion, and total orders jumped 49% to $19.0 billion. GE raised full-year adjusted EPS guidance to $8.00-$8.10 from $7.65-$7.85 and lifted its free cash flow outlook to $9.1-$9.4 billion from $8.9-$9.2 billion. Northrop Grumman reported adjusted EPS of $7.89 against an estimate near $7.18 on revenue of $11.1 billion, with its backlog hitting a record $110 billion on net awards of $16.4 billion and a book-to-bill ratio of 1.5 times. Northrop raised its full-year adjusted EPS guidance to $29.35-$29.75 from $28.60-$29.10, with aeronautics sales up 14% and defense systems up 12% in the quarter.

General Motors beat third-quarter expectations, posting revenue of $50.02 billion against a $48.53 billion estimate and adjusted EPS of $3.70 versus $3.56 expected, as vehicle sales of 1.03 million units topped the forecast of 982,528. The company approved a new $20 billion multi-year share repurchase program, completing its prior $6 billion authorization, and CFO Paul Jacobson cited strong free cash flow as the driver. Despite those positives, GM shares fell nearly 8% in premarket trading after the company narrowed its full-year adjusted EPS guidance to $12.75-$13.75, a midpoint below the $13.41 analyst consensus, and disclosed approximately $2 billion in higher commodity costs tied to logistics and chip prices. International operations adjusted EBIT of $28 million also fell sharply short of the $130 million estimate. Full-year adjusted automotive free cash flow guidance was raised to $11.5-$12.5 billion from $9.5-$11.5 billion.

Hasbro delivered a dramatic beat, with adjusted EPS of $2.90 against an $1.88 estimate and revenue of $1.60 billion versus $1.47 billion expected. Magic: The Gathering surpassed $600 million in quarterly revenue for the first time, reaching $616 million and rising 34% year over year, lifting the Wizards and Digital Gaming segment 31%. Hasbro raised its full-year adjusted EBITDA guidance to $1.58-$1.63 billion from $1.45-$1.50 billion. 3M beat with adjusted EPS of $2.50 against a $2.38 estimate and raised its full-year adjusted EPS guidance to $9.10-$9.15, while announcing an expanded strategic relationship with Amazon to supply optical connectivity and data center products, sending the shares up more than 3.7% in premarket trading. Halliburton topped estimates with revenue of $5.70 billion versus $5.58 billion expected and adjusted EPS of $0.60 against a $0.58 consensus, securing new integrated contracts from Eni in Cyprus and bp offshore Brazil.

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Sources

  1. Seeking AlphaMercantile Bank Non-GAAP EPS of $1.42 beats by $0.07, revenue of $73.2M beats by $2.36M
  2. LiveSquawk$NOC | Northrop Grumman Q3 Earnings: - Sales: $11.1B (est $11.13B) - EPS: $7.89 - Still Sees FY Sales: $43.75B To $44.25B (est $44.05B) - Still Sees FY Free Cash Flow $3.10B To $3.50B (est $3.32B) - Sees FY Adj EPS $29.35 To $29.75, Saw $28.60 To $29.10
  3. ReutersNorthrop lifts 2026 profit forecast on strong defense demand, record backlog
  4. FirstSquawkNorthrop Grumman Q3 Earnings - Sales: $11.1B (est $11.13B) - EPS: $7.89 - Backlog Increases To $110B - Still Sees FY Sales: $43.75B To $44.25B (est $44.05B) - Still Sees FY Free Cash Flow $3.10B To $3.50B (est $3.32B) - Sees FY Adj EPS $29.35 To $29.75, Saw $28.60 To $29.10
  5. BarronsNorthrop Grumman's 2027 Earnings Outlook Calls for More Growth
  6. Financialjuice$GM General Motors Q3 Earnings
  7. WsjGeneral Motors Plans $20 Billion in Buybacks to Shore Up Share Price
  8. DeItaoneGENERAL MOTORS ($GM ) BEATS Q3 EARNINGS EXPECTATIONS Q3 Results: 🔸 Revenue: $50.02B vs. $48.70B expected 🔸 Adjusted EPS: $3.70 vs. $3.63 expected 🔸 Adjusted EBIT: $4.11B vs. $4.25B expected FY2026 Guidance: 🔸 Adjusted EPS: $12.75–$13.75 vs. $13.40 expected 🔸 Adjusted EBIT: $14.5B–$15.5B vs. $14.78B expected The key takeaway: GM beat revenue and EPS estimates, although operating profit fell short of expectations.
Show 17 more
  1. BarronsonlineNorthrop Grumman’s 2027 Earnings Outlook Calls for More Growth
  2. Business WireGM Financial Reports Third Quarter 2026 Operating Results
  3. CnbcGeneral Motors beats Wall Street's Q3 earnings expectations, narrows full-year guidance
  4. NasdaqHalliburton Company Bottom Line Climbs In Q3
  5. Investingcom⚠️BREAKING: *GENERAL MOTORS 3Q EPS $3.70; EST. $3.69 *GM 3Q REVENUE $50.02B, EST. $48.77B $GM
  6. Wallstengine$ALLY FINANCIAL Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $2.33B (Est. $2.3B) 🟢; +8% YoY 🔹 Adj. EPS: $1.34 (Est. $1.34) 🟡; +16% YoY 🔹 GAAP EPS: $1.30; +10% YoY 🔹 Core Pre-Tax Income: $581M (Est. $566M) 🟢 Other Q3 Metrics: 🔹 Adj. Revenue: $2.35B; +9% YoY 🔹 Net Financing Revenue: $1.75B 🔹 NIM ex. OID: 3.66%; +11 bps YoY 🔹 Core Net Income: $412M (Est. $417M) 🔴 🔹 Core ROTCE: 13.1%; +80 bps YoY 🔹 Retail Auto Net Charge-Offs: 1.89%; +1 bps YoY 🔹 Consumer Auto Originations: $12.9B; +10% YoY 🔹 Retail Deposits: $141.9B 🔹 CET1 Ratio: 10.2% 🔹 Book Value/Share: $43.24 (Est. $45.96) 🔴 🔹 Adj. Tangible Book Value/Share: $41.00 Pre-Tax Income by Segment: 🔹 Automotive Finance: $337M 🔹 Insurance: $80M 🔹 Corporate Finance: $98M Capital Return: 🔹 Share Repurchases: $178M 🔹 Dividend: $0.30/share Key Updates: 🔹 Adj. EPS adds back $0.05 of Core OID and removes $0.01 for the change in fair value of equity securities 🔹 Increase in fair value of equity securities: $5M Comments: 🔸 “We are growing our core franchises, improving returns, maintaining risk discipline, and demonstrating our ability to both strengthen capital and return it to shareholders.”
  7. MarketsdayGeneral Motors $GM Q3’26 Earnings Highlights – October 20, 2026 🔹 Revenue reached $50B, beating Wall Street expectations, while adjusted EPS came in at $3.70, also ahead of forecasts. 🔹 North American operations generated $3.59B in adjusted EBIT on sales of 1.03 million vehicles. 🔹 GM completed its previous $6B share repurchase program and approved a new $20B buyback program with no specified end date. 🔹 The company has repurchased $29.5B worth of shares since 2023, highlighting its continued focus on shareholder returns. 🔹 FY26 adjusted EPS guidance was narrowed to $12.75–$13.75 per share. 🔹 FY26 free cash flow guidance was raised to $11.5B–$12.5B. 🔹 CEO Mary Barra highlighted upcoming products, including the 2027 Chevrolet Silverado, alongside growth opportunities in services. 🔹 Investor takeaway: GM beat earnings expectations and increased its buyback commitment, while its updated outlook points to continued focus on cash generation, new vehicle launches and shareholder returns. \#GeneralMotors #GM #EarningsSeason #Q3Earnings #Automotive #ShareBuyback #USStocks #CorporateEarnings
  8. BusinessGM plans to buy back another $20 billion in stock and reported better-than-expected earnings
  9. Briefingcom$GM: General Motors is trading lower premarket after narrowly beating earnings estimates and topping revenue expectations. The company narrowed its FY26 EPS and adjusted EBIT guidance, and its board approved a new $20 billion multi-year share repurchase authorization.
  10. SquawkCNBCAlongside earnings this morning, $GM announced a $20 billion multi-year stock buyback. "We know that buying back shares is a really strong investment for our shareholders," says CFO Paul Jacobson.
  11. BullTheoryioBREAKING: General Motors is down almost 8% in the premarket as its full year profit outlook misses estimates. $GM beat Q3 estimates, but its full year earnings forecast of $12.75 to $13.75 per share is below what analysts expected. Costs are the problem. GM now expects about $2 billion in higher commodity costs this year, driven by logistics and computer chip prices.
  12. InvestingEarnings call transcript: Dime Community beats Q3 2026 estimates, shares fall premarket
  13. Alphaspace$GM beat on earnings, but the outlook let investors down. 😔 It expects adjusted earnings of about $13.25 per share this year, below Wall Street’s $13.41 estimate.
  14. Cnbc TelevisionGM CFO Paul Jacobson on $20B stock buyback: Driven by our stellar free cash flow generation
  15. Financial Modeling Prep3M (NYSE: MMM) Reports Strong Q3 2026 Earnings with Raised Guidance
  16. Proactive_X$MMM 3M raises 2026 earnings guidance after quarterly profit growth @3M #MMM
  17. Proactive Investors3M raises 2026 earnings guidance after quarterly profit growth