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Northrop Grumman

Northrop Grumman (NOC) Q2 2026 Earnings

Reported Jul 21, 2026 at 6:45 AM ET · SEC Source

Q2 26 EPS

$7.68

BEAT +12.68%

Est. $6.82

Q2 26 Revenue

$10.88B

BEAT +0.64%

Est. $10.81B

Market Reaction

Did NOC Beat Earnings? Q2 2026 Results

Northrop Grumman delivered a strong second quarter for fiscal 2026, posting earnings per share of $7.68 that cleared the $6.82 consensus estimate by 12.68%, extending the defense giant's streak of beating EPS expectations to four consecutive quarters… Read more Northrop Grumman delivered a strong second quarter for fiscal 2026, posting earnings per share of $7.68 that cleared the $6.82 consensus estimate by 12.68%, extending the defense giant's streak of beating EPS expectations to four consecutive quarters. Revenue rose 5.1% year-over-year to $10.88 billion, edging past the $10.81 billion consensus, while a record backlog of $104.69 billion, bolstered by $20.00 billion in net awards during the quarter, underscored the depth of demand for Northrop's programs. The headline earnings figure was meaningfully supported by a sharp drop in the effective tax rate to 6.3% from 17.7% a year ago, the result of IRS developments tied to previously filed federal returns and refund claims, which generated a $179.00 million tax benefit and largely offset a $329.00 million decline in operating income. With peers across the defense sector also seeing robust order momentum, Northrop raised its full-year sales guidance to a range of $43.75 billion to $44.25 billion and lifted its MTM-adjusted EPS outlook to $28.60 to $29.10, reflecting growing confidence in the company's program execution trajectory.

Key Takeaways

  • • 13% sales growth at Aeronautics Systems driven by B-21, restricted programs, TACAMO ramp, and B-2/F-35/E-2 volumes
  • • Mission Systems operating margin expansion to 15.4% from 14.0% on improved EAC adjustments
  • • Effective tax rate decline to 6.3% from 17.7% due to IRS resolution of prior tax returns and refund claims
  • • 47% increase in Q2 operating cash flow driven by lower net cash tax payments
  • • Record backlog of $104.7 billion with $20 billion in Q2 net awards

NOC Forward Guidance & Outlook

Northrop Grumman raised its 2026 guidance: sales now expected between $43.75B and $44.25B (up $250M from prior), MTM-adjusted EPS now expected between $28.60 and $29.10 (up $1.20 from prior). Segment operating income guidance reaffirmed at $4.85B–$5.0B, and adjusted free cash flow reaffirmed at $3.1B–$3.5B. Segment-level sales guidance was also updated: Aeronautics Systems raised to ~$14B (from mid-$13B), Defense Systems at mid-to-high $8B, Mission Systems at high $12B, and Space Systems at ~$11B. Operating margin expectations were adjusted, with Mission Systems raised to ~15% and Space Systems lowered to low 10%. The company noted it does not assume a prolonged government shutdown or application of spending limits in its guidance.

24/7 Wall St

NOC YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

NOC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26

“Northrop Grumman achieved a new record backlog, driven by robust global demand for our products. We are raising our sales and EPS guidance for the year based on our confidence in our team and the demand for our technologies. As momentum accelerates across our portfolio and the budgets continue to support demand, we remain focused on delivering for our customers with speed and precision, and we are proud of our role in preserving the freedoms we celebrate during our nation's 250th birthday.”

— Kathy Warden, Q2 2026 Earnings Press Release

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