Shares of Northrop Grumman (NOC) plummeted 10.69% in pre-market trading on Tuesday after the aerospace and defense contractor reported disappointing first-quarter results and slashed its full-year earnings outlook. The sharp decline came as investors reacted to multiple headwinds facing the company.

Northrop Grumman's Q1 earnings per share came in at $3.32, falling far short of the $6.24 analysts had expected. Excluding a significant charge related to its B-21 stealth bomber program, adjusted earnings were $6.06 per share, still below estimates. Revenue for the quarter declined 7% year-over-year to $9.47 billion, missing Wall Street forecasts of $9.92 billion.

The primary factor weighing on Northrop's results was a $477 million pre-tax loss recognized on the B-21 program due to higher manufacturing costs. This substantial hit to the bottom line raised concerns about potential ongoing challenges with this key defense contract. Additionally, the company lowered its full-year 2025 earnings guidance to a range of $24.95 to $25.35 per share, down from its previous outlook of $27.85 to $28.25 per share. The reduced forecast further dampened investor sentiment and contributed to the stock's steep decline.