Northrop Grumman delivered a strong third quarter 2026 performance, beating analyst expectations for revenue and earnings while raising full-year guidance. Growth was underpinned by a 14% sales surge in Aeronautics Systems and a significant expansion in Space Systems margins, leading to a record backlog and a robust 1.5x book-to-bill ratio.
Key Highlights
- Backlog and Awards: Total backlog reached a record $109.6 billion, fueled by $16.4 billion in net awards, including $4.6 billion in restricted programs and $2.0 billion for the Sentinel program.
- Margin Outperformance: Space Systems operating margin of 11.3% significantly exceeded the estimated 9.2%, driven by a shift toward more profitable fixed-price contract content.
- Guidance Increase: The company raised its 2026 MTM-adjusted EPS guidance midpoint by $0.70 to $29.55 and increased its segment operating income outlook by $65 million.