Northrop Grumman Reports Q3 2026 Results and Raises Full-Year Guidance

Northrop Grumman Reports Third Quarter 2026 Financial Results

Summary of Operating Performance

Northrop Grumman Corporation reported strong financial results for the third quarter ended September 30, 2026, driven by sustained global defense demand across key segments:

• Revenue: Total sales increased 7% year-over-year to $11.12 billion, compared to $10.42 billion in Q3 2025.
• Net Earnings & EPS: Net earnings stood at $1.1 billion, or $7.89 per diluted share, up from $7.67 in the prior-year period.
• Operating Margin: Operating margin rate was 11.4%, with segment operating margin rate reaching 12.1%.
• Segment Operating Income: Grew 5% year-over-year to $1.35 billion from $1.28 billion.

Orders and Backlog

• Book-to-Bill: Achieved a book-to-bill ratio of 1.5x with $16 billion in net awards during the quarter.
• Backlog: Total backlog expanded to a record $110 billion, underscoring long-term revenue visibility.

Segment Breakdown

• Aeronautics Systems: Sales rose 14% to $3.58 billion; operating income increased 24% to $377 million.
• Defense Systems: Sales increased 12% to $2.31 billion; operating income rose 7% to $250 million.
• Mission Systems: Sales grew 2% to $3.16 billion; operating income decreased 3% to $500 million.
• Space Systems: Sales grew 2% to $2.75 billion; operating income increased 5% to $312 million.

Guidance Revision

Northrop Grumman raised its full-year 2026 guidance:

• Segment Operating Income: Midpoint raised by $65 million.
• MTM-Adjusted EPS: Midpoint raised by $0.70.