Adds share movement to second paragraph, moves up paragraphs on defense systems, adds analyst commentary in paragraph 8, adds analyst estimates in 13-15 paragraphs

By Mike Stone and Aishwarya Jain

July 21 (Reuters) - Defense supplier Northrop Grumman NOC.N on Tuesday lifted its 2026 sales and adjusted profit forecast, supported by sustained demand for weapons amid a wave of geopolitical conflicts.

Shares were down 4% in early trading in New York as the company said two of its four business segments did not perform well during the quarter.

U.S. President Donald Trump has been pressing defense companies to expand manufacturing capacity and boost weapons production as the wars in Ukraine and the Middle East drain the country's stockpiles.

The U.S. has expended more than 50,000 rockets, missiles and other rocket-propelled projectiles since the beginning of the Russia-Ukraine conflict in 2022 through the war with Iran, according to data from the Pentagon.

Trump has also proposed a record $1.5 trillion military budget for fiscal year 2027, far exceeding the $901 billion approved for 2026.

Revenue in Northrop's defense systems business rose 5%, helped by strong sales in its Sentinel program, the land-based leg of the U.S. nuclear triad.

However, operating income in the defense business fell 38% as the company spends more to develop and qualify its air-to-surface missile, Stand-in Attack Weapon and mature production for the long-range version of the Advanced Anti-Radiation Guided Missile.

"Given the market’s tendency to punish execution challenges, we could see pressure on the stock, though we do not believe expectations for the quarter were very high," said Seth Seifman, analyst at JP Morgan.

Northrop's largest revenue segment, Aeronautics, posted a 13% increase in second-quarter sales compared with a year earlier, driven by strong performance in the B-21 Raider program and other classified programs.

The B-21 Raider, a nuclear-capable long-range strike aircraft, received a major production boost in February, when Northrop signed an Air Force agreement expanding production capacity by 25%, with the first delivery set for 2027.

Northrop lifted its 2026 revenue forecast by $250 million to a range of $43.75 billion to $44.25 billion, roughly in line with Wall Street estimates, according to data compiled by LSEG.

Excluding items, the company now expects 2026 profit between $28.60 and $29.10 per share, compared to a prior range of $27.40 to $27.90 apiece.

The Falls Church, Virginia-based company reported total sales of $10.88 billion for the quarter ended June 30, compared to analysts' expectations of $10.81 billion. Its total backlog rose 9% to $104.7 billion during the period - a record.

Its per-share quarterly profit stood at $7.68, compared with $8.15 a year earlier, with the latter including a $1.04 benefit from the divestiture of Northrop's training services business. Analysts on average expected $6.82 per share.

The beat in quarterly profit was primarily due to a lower tax rate, according to analysts at JP Morgan and TD Cowen.