Northrop Grumman Q2 2026: Record $105B Backlog and Raised 2026 Guidance
NOC is trading near its 52-week low of $493.84 (6.1% above the low).
Summary
Northrop Grumman posted Q2 2026 sales of $10.9B and diluted EPS of $7.68, alongside a record $105B backlog. Full-year sales and EPS guidance were raised, but operating income declined 23% on margin pressure in Defense and Space Systems.
Key Events · Earnings and Guidance · NOC
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Record Backlog of $105B
Driven by $20 billion in net awards—including $7.6B for Sentinel and $4.3B for restricted programs—backlog reached a new company record of $104.7 billion, up 9% from year-end 2025.
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Q2 Sales Up 5% to $10.9B
Sales rose 5% year-over-year to $10.9 billion, led by a 13% jump in Aeronautics Systems on B-21 and TACAMO ramp, partially offset by lower F/A-18 volume.
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Operating Income Down 23%
Operating income fell to $1.1 billion from $1.4 billion, largely reflecting the prior year's $231M gain on the training services divestiture and lower segment operating income at Defense Systems and Space Systems.
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2026 Guidance Raised
Full-year sales guidance increased by $250M to $43.75B–$44.25B, and MTM-adjusted EPS guidance rose by $1.20 to $28.60–$29.10, signaling confidence in demand and execution.
Analysis · NOC · Manufacturing
A 5% sales increase to $10.9 billion and a record $105 billion backlog underscore robust demand across all four sectors, prompting Northrop Grumman to raise its full-year sales and EPS guidance. Yet operating income fell 23%, weighed down by a tough comparison with last year's divestiture gain and margin pressure at Defense and Space Systems. The effective tax rate plunged to 6.3%, boosting net earnings, but underlying operational performance was mixed. While the raised guidance and record backlog are encouraging, margin compression and segment-level challenges keep enthusiasm in check.
At the time of this filing, NOC was trading at $524.00 on NYSE in the Manufacturing sector, with a market capitalization of approximately $74.4B. The 52-week trading range was $493.84 to $774.00. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.