Northrop Grumman reported second-quarter 2026 sales of $10.9 billion, up 5% year-over-year, with net earnings of $1.094 billion and diluted earnings per share of $7.68. The company recorded operating income of $1.096 billion and raised full-year 2026 sales guidance to $43.75–$44.25 billion and MTM‑adjusted EPS to $28.60–$29.10. Net awards totaled $20.0 billion, lifting backlog to a record $104.7 billion.

Financial Highlights

  • Revenue: Total sales of $10,876 million for Q2 2026, up 5% from $10,351 million in Q2 2025.
  • Operating income: $1,096 million for the quarter; operating margin rate of 10.1% (Q2 2025: $1,425 million and 13.8%).
  • Net income: $1,094 million for Q2 2026 (down 7% year-over-year).
  • Diluted earnings per share: $7.68 for Q2 2026 (vs. $8.15 in Q2 2025).
  • Cash flow and guidance: Adjusted free cash flow of $978 million in Q2; company raised 2026 sales guidance to $43,750–$44,250 million and MTM-adjusted EPS guidance to $28.60–$29.10.

Business Highlights

  • Backlog and awards: Net awards of $20.0 billion in the quarter increased total backlog to $104.7 billion; notable awards include Sentinel ($7.6B), restricted programs ($4.3B), F-35 ($1.0B), Glide Phase Interceptor ($0.8B) and MESA ($0.7B).
  • Sector performance: Sales increased across all four sectors—Aeronautics Systems up 13% (driven by B-21, E-130J TACAMO ramp, B-2, F-35, E-2), Defense Systems up 5% (Sentinel ramp and IBCS portfolio), Mission Systems up 3% (marine systems, F-35 materials timing, airborne radar ramp-up), Space Systems up 4% (CRS missions, GPI, GMD WS).
  • Segment margins and program adjustments: Mission Systems saw margin improvement (15.4%); Defense Systems and Space Systems experienced lower margins due to net EAC adjustments, including investments for AARGM-ER and SiAW and an unfavorable $91M adjustment on GEM 63XL.
  • Operational investments: Continued investments to mature production on missile prime capabilities and to develop and qualify new weapons (AARGM-ER, SiAW) alongside program ramp activities (Sentinel, TACAMO, CRS).

Original SEC Filing:

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