| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 11.1K | 2.3% | 6.7% |
| Total Income | 11.1K | 2.3% | 6.7% |
| Expenditure | 9.9K | 0.8% | 7.3% |
| PBT | 1.3K | 11.1% | 1.9% |
| Net Profit | 1.1K | 2.7% | 2.2% |
| OPM | 11.41% | 1.33pp | 0.51pp |
| NPM | 10.11% | 0.05pp | 0.45pp |
| EPS | 7.91 | 2.7% | 2.9% |
Northrop Grumman Reports Q3 2026 Financial Results with Sales Up 7% to $11.1 Billion
20 Oct 2026 · 1d ago, 3:37 pm
Summary
Northrop Grumman reported a 7 percent increase in third quarter 2026 sales to $11.1 billion, driven by strong demand for its global capabilities. Net earnings for the quarter were $1.1 billion, or $7.89 per diluted share. The company also saw a significant increase in its backlog to $110 billion, supported by net awards of $16 billion and a book-to-bill ratio of 1.5x. Management expressed confidence in continued sales and earnings growth, supported by a well-positioned portfolio and strategic investments, leading the company to raise its 2026 financial guidance.
Key Highlights
- 1
Northrop Grumman reported third quarter 2026 sales increased 7 percent to $11.1 billion, compared to $10.4 billion in the third quarter of 2025.
- 2
The company's book to bill ratio was 1.5x, with net awards totaling $16 billion, leading to a backlog increase to $110 billion.
- 3
Third quarter 2026 diluted earnings per share (EPS) was $7.89, an increase from $7.67 in the third quarter of 2025.
- 4
Segment operating margin rate for the third quarter of 2026 was 12.1 percent, a slight decrease from 12.3 percent in the prior year quarter.
- 5
Northrop Grumman raised its 2026 guidance for key financial metrics, including segment operating income and MTM-adjusted EPS.
- 6
Sales in the Aeronautics Systems segment increased by 14 percent to $3,575 million, driven by higher sales on F-35 and B-21 programs.
- 7
Adjusted free cash flow for the third quarter of 2026 increased by 44 percent to $1.81 billion, primarily due to proceeds from the sale of equipment to a customer.
Management Comments
Kathy Warden
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. I’m confident our new record backlog, well-positioned portfolio and investments, and industry-leading performance will continue to drive sales and earnings growth as reflected in our 2027 outlook.
Informational and educational content only. Not investment advice.