Northrop Grumman (NOC) Q3 2026 Financial Results Summary
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Northrop Grumman (NOC) Q3 2026: Revenue Growth and EPS Increase — Positive Outlook
Northrop Grumman Corporation (NYSE: NOC) reported a strong performance in the third quarter of 2026, with sales increasing by $699 million, or +7% year-over-year, reaching $11.1 billion compared to $10.4 billion in Q3 2025. Additionally, diluted earnings per share (EPS) rose to $7.89, up from $7.67 in the same quarter last year, marking a growth of $0.22 or +3%.
This quarter's results are encouraging for shareholders, reflecting robust demand across all sectors and a solid operational performance. The increase in both revenue and EPS indicates that the company is effectively capitalizing on its market position and operational capabilities.
Key Financial Metrics:
- Sales: $11.1 billion, up $699 million or +7% YoY
- Diluted EPS: $7.89, up $0.22 or +3% YoY
- Operating Margin Rate: 11.4%, down from 11.9% YoY
- Net Earnings: $1.1 billion, up from $1.1 billion YoY
- Segment Operating Income: Increased by $68 million or +5%
- Backlog: Increased to $110 billion
- Net Awards: $16 billion
Operational Highlights:
- The company achieved a book-to-bill ratio of 1.5x, indicating strong order intake relative to revenue.
- The backlog of $110 billion reflects a solid pipeline of future work, which is crucial for sustained growth.
- The operating margin rate decreased slightly to 11.4% due to a decrease in the FAS/CAS operating adjustment, but segment operating margin remained strong at 12.1%.
Dividend and Guidance Changes:
Northrop Grumman has raised its guidance for 2026, reflecting confidence in its operational performance and market conditions:
- Segment Operating Income Guidance: Increased by $65 million at the midpoint.
- MTM-Adjusted EPS Guidance: Increased by $0.70 at the midpoint.
- Sales Guidance: Projected between $43,750 million and $44,250 million.
Analyst View:
This quarter's results are a positive indicator for Northrop Grumman's future, showcasing its ability to grow revenue and earnings in a competitive environment. The increase in backlog and net awards further supports the company's growth trajectory. The raised guidance for 2026 suggests that management is optimistic about continued demand for its products and services.
Forward Catalyst:
Investors should keep an eye on the upcoming quarters for further developments in Northrop Grumman's backlog and order intake, as well as any updates on new contracts or programs that could drive future growth. Additionally, the company's ability to maintain or improve its operating margin in the face of inflationary pressures and supply chain challenges will be critical to watch.
In conclusion, Northrop Grumman's Q3 2026 results reflect a strong operational performance and a positive outlook for the remainder of the year, making it an attractive consideration for investors looking for stability and growth in the aerospace and defense sector.
Note: All amounts are in millions.
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |
| Sales | $11,122 | $10,423 | $31,879 | $30,242 |
| Total operating costs | $9,853 | $9,181 | $28,525 | $27,233 |
| Operating income | $1,269 | $1,242 | $3,354 | $3,240 |
| Net earnings | $1,124 | $1,100 | $3,093 | $2,755 |
| Basic earnings per share | $7.91 | $7.69 | $21.77 | $19.16 |
| Diluted earnings per share | $7.89 | $7.67 | $21.72 | $19.12 |
| Comprehensive income | $1,126 | $1,101 | $3,087 | $2,784 |
Note: All amounts are in millions.
| September 30, 2026 | December 31, 2025 | |
|---|---|---|
| Cash and cash equivalents | $3,744 | $4,403 |
| Accounts receivable, net | $2,080 | $1,375 |
| Unbilled receivables, net | $7,899 | $6,544 |
| Inventoried costs, net | $1,361 | $1,309 |
| Total current assets | $16,977 | $15,287 |
| Property, plant and equipment, net | $10,461 | $10,972 |
| Goodwill | $17,440 | $17,437 |
| Total assets | $52,497 | $51,377 |
| Total current liabilities | $13,753 | $13,882 |
| Long-term debt | $14,433 | $15,162 |
| Total liabilities | $33,814 | $34,703 |
| Common stock | $142 | $142 |
| Paid-in capital | $63 | — |
| Total shareholders’ equity | $18,683 | $16,674 |
| Total liabilities and shareholders’ equity | $52,497 | $51,377 |
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