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Northrop Grumman Sees Growth Across Key Defense Programs
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Key Takeaways
Northrop Grumman's Q2 adjusted EPS beat estimates by 12.3%, while sales rose 5.1% year over year.
Aeronautics led segment growth with a 13% sales increase, driven by B-21 and restricted programs.
Northrop Grumman raised 2026 revenue and adjusted EPS guidance, with free cash flow at $3.10-$3.50B.
Northrop Grumman Corporation (NOC - Free Report) reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s Total Sales
NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
Northrop Grumman Corporation Price, Consensus and EPS Surprise
The company’s total backlog was $95.68 billion at the end of the second quarter compared with $95.61 billion at the end of first-quarter 2026.
NOC’s Segmental Details
Aeronautics Systems: This segment’s sales of $3.52 billion rose 13% year over year, driven by higher sales from B-21 and other restricted programs, as well as increased volume on the E-130J TACAMO program.
The unit’s operating income totaled $362 million compared with $321 million in the second quarter of 2025. Its operating profit margin remained the same at 10.3%.
Mission Systems: Sales in this segment increased 2.9% to $3.25 billion. This was driven by ramp-up on restricted airborne radar programs and higher volume on marine systems programs.
The unit’s operating income increased 13.6% to $501 million. The operating margin expanded 140 basis points (bps) to 15.4%.
Defense Systems: This segment’s sales rose 5.1% year over year to $2.09 billion. This improvement was driven by the continued ramp-up of the Sentinel program, as well as the higher volume of tactical solid rocket motor programs and the Integrated Battle Command System portfolio.
The unit’s operating income declined 38.3% year over year to $156 million. The operating margin contracted 520 bps to 9.7%.
Space Systems: Sales in this segment rose 4% to $2.75 billion. This improvement was driven by higher Commercial Resupply Service (CRS) missions as well as higher volume on the Glide Phase Interceptor (GPI) and Ground-based Midcourse Defense Weapon System (GMD WS) programs.
The segment’s operating income decreased 17% year over year to $235 million. The operating margin also contracted 150 bps to 9.5%.
Northrop Grumman’s Operational Update
Total operating income during the quarter totaled $1.10 billion, reflecting a significant decrease from $1.43 billion in the prior-year quarter.
NOC’s Financial Condition
Northrop Grumman’s cash and cash equivalents as of June 30, 2026, totaled $2.31 billion, down from $4.40 billion as of Dec. 31, 2025.
Long-term debt (net of the current portion) amounted to $14.43 billion compared with $15.16 billion as of Dec. 31, 2025.
Net cash outflow from operating activities totaled $376 million during the first six months of 2026 compared with $697 million a year ago.
Northrop Grumman’s 2026 Guidance
The company expects its revenues to be in the range of $43.75-$44.25 billion compared with its previous guidance of $43.50-$44.00 billion. The Zacks Consensus Estimate for sales is pegged at $43.96 billion, lower than the midpoint of the company’s guided range.
NOC expects adjusted earnings to be in the band of $28.60-$29.10 per share compared with its previous guidance of $27.40-$27.90 per share. The consensus estimate for earnings is pegged at $28.19 per share, above the company’s guided range.
Northrop Grumman projects to generate adjusted free cash flow in the band of $3.10-$3.50 billion.
The Boeing Company (BA - Free Report) is set to report second-quarter 2026 earnings on July 28, 2026, before market open.
The Zacks Consensus Estimate for BA’s loss is pegged at 24 cents per share. The consensus estimate for its sales is pegged at $24.03 billion, indicating year-over-year growth of 5.7%.
Lockheed Martin (LMT - Free Report) is set to report second-quarter 2026 earnings on July 23, 2026, before market open.
The consensus estimate for LMT’s earnings is pegged at $7.22 per share. The consensus estimate for its sales is pegged at $19.52 billion, indicating year-over-year growth of 7.5%.
General Dynamics Corporation (GD - Free Report) is set to report second-quarter 2026 results on July 29, 2026, before market open.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.93 per share. The consensus estimate for its sales is pegged at $13.49 billion, indicating year-over-year growth of 3.4%.
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Northrop Grumman Sees Growth Across Key Defense Programs
Key Takeaways
Northrop Grumman Corporation (NOC - Free Report) reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s Total Sales
NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
Northrop Grumman Corporation Price, Consensus and EPS Surprise
Northrop Grumman Corporation price-consensus-eps-surprise-chart | Northrop Grumman Corporation Quote
Northrop Grumman’s Backlog Count
The company’s total backlog was $95.68 billion at the end of the second quarter compared with $95.61 billion at the end of first-quarter 2026.
NOC’s Segmental Details
Aeronautics Systems: This segment’s sales of $3.52 billion rose 13% year over year, driven by higher sales from B-21 and other restricted programs, as well as increased volume on the E-130J TACAMO program.
The unit’s operating income totaled $362 million compared with $321 million in the second quarter of 2025. Its operating profit margin remained the same at 10.3%.
Mission Systems: Sales in this segment increased 2.9% to $3.25 billion. This was driven by ramp-up on restricted airborne radar programs and higher volume on marine systems programs.
The unit’s operating income increased 13.6% to $501 million. The operating margin expanded 140 basis points (bps) to 15.4%.
Defense Systems: This segment’s sales rose 5.1% year over year to $2.09 billion. This improvement was driven by the continued ramp-up of the Sentinel program, as well as the higher volume of tactical solid rocket motor programs and the Integrated Battle Command System portfolio.
The unit’s operating income declined 38.3% year over year to $156 million. The operating margin contracted 520 bps to 9.7%.
Space Systems: Sales in this segment rose 4% to $2.75 billion. This improvement was driven by higher Commercial Resupply Service (CRS) missions as well as higher volume on the Glide Phase Interceptor (GPI) and Ground-based Midcourse Defense Weapon System (GMD WS) programs.
The segment’s operating income decreased 17% year over year to $235 million. The operating margin also contracted 150 bps to 9.5%.
Northrop Grumman’s Operational Update
Total operating income during the quarter totaled $1.10 billion, reflecting a significant decrease from $1.43 billion in the prior-year quarter.
NOC’s Financial Condition
Northrop Grumman’s cash and cash equivalents as of June 30, 2026, totaled $2.31 billion, down from $4.40 billion as of Dec. 31, 2025.
Long-term debt (net of the current portion) amounted to $14.43 billion compared with $15.16 billion as of Dec. 31, 2025.
Net cash outflow from operating activities totaled $376 million during the first six months of 2026 compared with $697 million a year ago.
Northrop Grumman’s 2026 Guidance
The company expects its revenues to be in the range of $43.75-$44.25 billion compared with its previous guidance of $43.50-$44.00 billion. The Zacks Consensus Estimate for sales is pegged at $43.96 billion, lower than the midpoint of the company’s guided range.
NOC expects adjusted earnings to be in the band of $28.60-$29.10 per share compared with its previous guidance of $27.40-$27.90 per share. The consensus estimate for earnings is pegged at $28.19 per share, above the company’s guided range.
Northrop Grumman projects to generate adjusted free cash flow in the band of $3.10-$3.50 billion.
NOC’s Zacks Rank
NOC currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Q1 Defense Releases
The Boeing Company (BA - Free Report) is set to report second-quarter 2026 earnings on July 28, 2026, before market open.
The Zacks Consensus Estimate for BA’s loss is pegged at 24 cents per share. The consensus estimate for its sales is pegged at $24.03 billion, indicating year-over-year growth of 5.7%.
Lockheed Martin (LMT - Free Report) is set to report second-quarter 2026 earnings on July 23, 2026, before market open.
The consensus estimate for LMT’s earnings is pegged at $7.22 per share. The consensus estimate for its sales is pegged at $19.52 billion, indicating year-over-year growth of 7.5%.
General Dynamics Corporation (GD - Free Report) is set to report second-quarter 2026 results on July 29, 2026, before market open.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.93 per share. The consensus estimate for its sales is pegged at $13.49 billion, indicating year-over-year growth of 3.4%.