Northrop Grumman stock: Record backlog lifts 2026 profit outlook

Northrop Grumman reported stronger third-quarter results on October 20, 2026, and raised its 2026 profit outlook as new awards pushed its backlog to a record. The company said in its SEC-filed earnings release that sales increased 7 percent year over year to 11.122 billion US dollars.

Demand lifts quarterly performance

All four operating sectors contributed to the increase. Aeronautics Systems sales rose 14 percent to 3.575 billion US dollars, supported by higher F-35, B-21 and B-2 sustainment volume. Defense Systems sales advanced 12 percent to 2.307 billion US dollars as the Sentinel program continued to ramp up.

Segment operating income increased 5 percent to 1.345 billion US dollars, while the segment operating margin eased to 12.1 percent from 12.3 percent a year earlier. Northrop Grumman attributed part of the margin comparison to a favorable 68 million US dollar contract adjustment in the prior-year Mission Systems result. Net earnings rose 2 percent to 1.124 billion US dollars, and diluted earnings per share increased to 7.89 US dollars from 7.67 US dollars.

Record orders improve visibility

Net awards reached 16.4 billion US dollars in the quarter, producing a book-to-bill ratio of 1.5 times. Total backlog stood at 109.6 billion US dollars on September 30, with major awards including 2.0 billion US dollars for Sentinel, 1.4 billion US dollars for Virginia-class submarines and 1.3 billion US dollars for the F-35 program.

Chief Executive Kathy Warden said the record backlog, the company's portfolio and its investments should support durable sales and earnings growth. The release also pointed to continued demand for the company's aerospace and defense capabilities, while noting that future results remain exposed to government budgets, procurement priorities, inflation, supply-chain constraints and contract execution.

Profit guidance moves higher

Northrop Grumman raised its 2026 segment operating income guidance to 4.940 billion to 5.040 billion US dollars, from 4.850 billion to 5.000 billion previously. MTM-adjusted earnings per share guidance increased to 29.35 to 29.75 US dollars from 28.60 to 29.10 US dollars. The midpoint rose by 0.70 US dollars. Sales guidance remained 43.750 billion to 44.250 billion US dollars, while adjusted free cash flow guidance stayed at 3.1 billion to 3.5 billion US dollars.

Northrop Grumman stock traded at 472.15 euros on Lang & Schwarz at 14:04 CET on Wednesday, November 4, 2026. Investors can follow the real-time quote of Northrop Grumman stock.

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Further operating updates and the company's next outlook statements will shape how investors assess the conversion of the record backlog into sales and cash flow. See more news and analyses on Northrop Grumman stock.