$NOC · NORTHROP GRUMMAN CORP /DE/
Northrop Grumman reported Q3 2026 results with sales of $11.1 billion (+7% YoY), diluted EPS of $7.89, and segment operating margin of 12.1%. Net awards reached $16.4 billion (1.5x book-to-bill), pushing backlog to a record $109.6 billion. The company raised full-year 2026 guidance: segment operating income midpoint increased by $65 million and MTM-adjusted EPS midpoint raised by $0.70 to $29.35–$29.75.
- Q3 sales rose 7% YoY to $11.1 billion, with Aeronautics Systems up 14% and Defense Systems up 12%.
- Net awards of $16.4 billion drove a 1.5x book-to-bill ratio and record backlog of $109.6 billion.
- Diluted EPS of $7.89 vs. $7.67 in Q3 2025; net earnings of $1.124 billion.
- 2026 MTM-adjusted EPS guidance raised by $0.70 at midpoint to $29.35–$29.75.
- Adjusted free cash flow surged 44% YoY to $1.81 billion, boosted by $371M in equipment sale proceeds.
Markets closed — no regular-session reaction yet. Extended-hours last trade at $509.99, down 0.13% from the regular close of $510.65, suggesting a muted initial response to the beat-and-raise quarter.
A beat-and-raise quarter with record backlog and 1.5x book-to-bill signals accelerating demand across all four defense sectors, reinforcing NOC's multi-year growth trajectory.
NOC's 1.5x book-to-bill and $110B backlog underscore the defense sector's demand tailwind from global threat environment. Aeronautics Systems' 14% growth on F-35 and B-21 aligns with peer trends in next-gen platforms.
Guidance assumes no prolonged government shutdown or spending cuts; a continuing resolution or debt-ceiling breach could delay appropriations and payments. Contract mix shifting toward cost-type content at Defense Systems pressured margins.
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