Northrop Grumman (NOC) Q3 2026 Earnings
How Did NOC Stock React to Q3 2026 Earnings?
Did NOC Beat Earnings? Q3 2026 Results
Yes. Northrop Grumman reported Q3 2026 earnings of $7.89 a share on Oct 20, 2026, beating the $7.18 consensus estimate by 9.9%. Revenue was $11.1B against a $11.1B estimate.
Northrop Grumman delivered a standout third quarter, with GAAP diluted EPS of $7.89 beating the $7.18 consensus estimate by 9.88%, extending the defense contractor's streak of consensus EPS beats to five consecutive quarters. Revenue rose 6.7% year-over-year to $11.12 billion, essentially in line with Wall Street's expectations. The earnings strength was driven in part by a sharply lower effective tax rate of 13.4%, down from 16.9% a year ago on higher research credits, which reduced tax expense by $49.00 million and helped lift net earnings to $1.12 billion. Operationally, Aeronautics Systems was the standout segment, with sales climbing 14% to $3.58 billion on F-35 production timing, higher B-21 revenue, and increased B-2 sustainment activity, while operating margin expanded to 10.5%. Total backlog surged to a record $109.60 billion, up 15% from year-end 2025, underpinned by $16.40 billion in net awards and a 1.5x book-to-bill ratio. Management raised its full-year MTM-adjusted EPS guidance midpoint by $0.70 to a range of $29.35 to $29.75, signaling confidence in continued momentum into 2027.
- F-35 production lot timing and increased sustainment volume drove Aeronautics Systems growth
- Sentinel program ramp-up drove Defense Systems growth
- Higher research credits reduced effective tax rate to 13.4% from 16.9%
- Improved trade working capital boosted operating cash flow by 12%
- Strong net contract margin adjustments on mature production and sustainment programs improved Aeronautics margins
- 1.5x book-to-bill ratio with $16.4 billion in net awards
“In a complex world with the growing need for solutions that scale and perform, our customers continue to turn to Northrop Grumman, and we are delivering with urgency and innovation. Our investments provide the capacity necessary to deliver durable growth as we expand our product offerings and scale our operations.”
Northrop Grumman CEO, on the earnings call
What Is Northrop Grumman's Outlook?
Northrop Grumman raised its 2026 guidance for key financial metrics. Full-year sales guidance maintained at $43,750–$44,250 million. Segment operating income guidance raised to $4,940–$5,040 million (prior: $4,850–$5,000 million). MTM-adjusted EPS guidance raised to $29.35–$29.75 (prior: $28.60–$29.10). Adjusted free cash flow guidance maintained at $3,100–$3,500 million. Segment guidance: Aeronautics Systems sales ~$14B with high 9% operating margin (prior: mid to high 9%); Defense Systems mid to high $8B with ~10% margin; Mission Systems high $12B with mid 15% margin (prior: ~15%); Space Systems ~$11B with low 10% margin. CEO expressed confidence that the record backlog and portfolio positioning will continue to drive sales and earnings growth into 2027.
NOC YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $11.1B | $10.4B | +6.7% |
| Operating Income | $1.3B | $1.2B | +2.2% |
| Net Income | $1.1B | $1.1B | +2.2% |
NOC Revenue by Segment
When Does Northrop Grumman Report Next?
Figures from SEC filings and company reports. Not investment advice.