Northrop Grumman reported second-quarter 2026 results with revenue up modestly year over year while net earnings and diluted EPS declined versus the prior-year quarter, driven by program mix and some unfavorable estimate changes despite higher production investments and backlog growth.
Financial Highlights
| MetricCurrent quarterPrior year quarterYoY change | Revenue¹$10.88B$10.35B5.1% | Net income²$1.09B$1.17B(6.8%) | Diluted EPS³$7.68$8.15(5.8%) |
¹ Reported as “Total sales”. ² Reported as “Net earnings (from above)”. ³ Reported as “Diluted earnings per share”.
Business Highlights
- Revenue growth of about 5% was driven by Aeronautics Systems (including B-21 and TACAMO) and ramps in Mission Systems.
- Company is shifting toward higher product volume from programs such as B-21, Sentinel, CRS and GPI, supported by a higher funded backlog and several large awards.
- Northrop Grumman committed roughly $2.5B to expand B-21 production capacity to raise aircraft production rates and improve returns.
- Program performance was mixed: favorable estimate impacts on Sentinel incentives and Aeronautics were offset by unfavorable impacts on GEM 63XL and SiAW, affecting margins.
- Backlog stood at $104.7B; notable second-quarter awards included a $7.6B Sentinel contract, $4.3B in restricted programs and a $1.0B F-35 award.
Original SEC Filing:
This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.