Northrop Grumman reported second quarter 2026 sales of $10.9 billion, a 5% increase year-over-year, and diluted EPS of $7.68. The company achieved net awards of $20 billion, increasing its backlog to a record $104.7 billion, and raised its full-year 2026 guidance for both sales and adjusted EPS.
Key Highlights
- Aeronautics Systems sales grew 13% to $3.5 billion, primarily due to higher volume on the B-21 program, while its operating margin remained flat year-over-year at 10.3%.
- Backlog grew to a company record of $104.7 billion, driven by net awards of $20.0 billion in the quarter, including $7.6 billion for the Sentinel program.
- The company raised its full-year 2026 sales guidance by $250 million and its MTM-adjusted EPS guidance by $1.20 at their respective midpoints.
- Operating margins in the Defense Systems and Space Systems segments declined to 7.5% and 8.6% respectively, due to unfavorable cost adjustments on key missile and rocket motor programs.