Aerospace and defense supplier Northrop Grumman reported higher fourth-quarter profit and revenue, driven by strong sales in its aeronautics business amid geopolitical uncertainty. Demand for arms has increased due to tensions in the Middle East and Russia-Ukraine conflict. Sales in Northrop’s aeronautics segment rose 18% during the quarter.

Sales in Northrop’s mission systems business, which produces communication and electronic warfare systems for the U.S. defense and intelligence community, increased by 10% in the fourth quarter. This growth was driven by a rise in restricted airborne radar programs and strong demand for parts used in the F-35 aircraft. Sales in the defense and space segments also saw a 7% and 5% increase respectively during the quarter.

Despite the positive sales figures, Northrop Grumman’s 2026 sales forecast of $43.5 billion to $44 billion fell short of Wall Street estimates of $44.24 billion. The defense supplier reported a total revenue of $11.71 billion for the quarter ended December 31, up about 10% from the previous year. Excluding items, its per-share profit was $7.23 in the quarter, compared with $6.39 last year.

Read more at Yahoo Finance: Northrop Grumman posts higher quarterly profit as geopolitical uncertainty fuels demand