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Northrop Grumman (MX:NOC)
:NOC
Mexico Market
EarningsQ2 2026 Earnings Report

Northrop Grumman (NOC) Q2 2026 Earnings Report

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MX:NOC Q2 2026 EPS Results

Actual EPS$138.97
Consensus EPS$123.45
Beat/MissBeat by +$15.53
One Year Ago EPS$147.48

MX:NOC Q2 2026 Revenue Results

Actual Revenue$196.80B
Expected Revenue$195.45B
Beat/MissBeat by +$1.35B
YoY Revenue Growth+5.07%

Earnings Announcement Details

QuarterQ2 2026
Date07/21/2026
TimeBefore Open
Conference CallTuesday, July 21, 2026
MX:NOC Upcoming Earnings
Northrop Grumman's next earnings date is estimated for October 20, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:NOC Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 21, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call conveyed a largely positive operational and financial outlook: strong bookings ($20B), record $105B backlog (up 17% YoY), raised 2026 sales and EPS guidance, robust segment execution (notably Aeronautics and Mission Systems), and meaningful international and missile-production opportunities. Near-term challenges were acknowledged — primarily two unfavorable EAC adjustments (GEM 63XL and SAW) that pressured DS and Space margins, timing/restructuring impacts on HALO, microelectronics softness, and elevated CapEx to expand capacity. Management outlined corrective actions and reiterated confidence in second-half margin improvement and multi-year demand, resulting in highlights materially outweighing the lowlights.
Company Guidance
Management raised 2026 guidance and signaled accelerating second‑half momentum: full‑year sales are guided to $43.75–$44.25B (midpoint $44B, >5% organic growth) with a book‑to‑bill of at least 1.25x, adjusted EPS was increased by $1.20 to $28.60–$29.10 (effective tax rate mid‑14%), and adjusted free cash flow is reaffirmed at $3.1–$3.5B (including several hundred million of accelerated B‑21 proceeds); Q2 highlights that underpin the guide included $20B of net awards (Q2 book‑to‑bill 1.84x), record backlog of $105B (including a $7.6B Sentinel definitization), Q2 sales of $10.9B (+10% sequential, +5% YoY), Q2 EPS of $7.68, Q2 adjusted FCF nearly $1B and Q2 CapEx $320M. Segment-level 2026 expectations are: Aeronautics ~ $14B sales with mid‑to‑high‑9% margin, Defense Systems mid‑to‑high‑$8B sales at ~10% margin (H2 >11% ex‑EACs), Mission Systems high‑$12B sales at ~15% margin, Space ~ $11B sales at low‑10% margin; company CapEx is expected to be $1.85B in 2026 and ~4.5% of sales in 2027–28, intersegment eliminations ~ $2.7B (intersegment OM ~ mid‑13%), and management reiterated confidence in delivering the updated sales, margin and EPS targets despite two unfavorable EAC adjustments.
Strong bookings and record backlog
Net awards of $20.0B in Q2 drove a book-to-bill of 1.84x for the quarter and a record backlog of $105B (up 17% year-over-year). Company now expects a full-year book-to-bill of at least 1.25x.
Revenue growth and sequential acceleration
Q2 sales were $10.9B, up 5% year-over-year and up 10% sequentially. Company raised full-year sales guidance to $43.75B–$44.25B (midpoint ~$44B), implying >5% organic growth.
Improved EPS outlook and tax-related benefit
Reported Q2 diluted EPS was $7.68. Management raised mark-to-market adjusted EPS guidance by $1.20 to $28.60–$29.10 for 2026; Q2 EPS performance benefited from a lower effective tax rate and a remeasurement of uncertain tax positions.
Cash generation and free cash flow outlook
Q2 adjusted free cash flow was nearly $1.0B (significant increase vs prior year). Full-year adjusted free cash flow guidance reaffirmed at $3.1B–$3.5B. Q2 CapEx was $320M; expected 2026 CapEx of $1.85B.
Segment-level strengths — Aeronautics and Mission Systems
Aeronautics delivered double-digit sales and margin growth with a reported margin of 10.3% driven by higher volumes on B-21, Takamo and mature programs. Mission Systems delivered strong bottom-line performance: sales up 3% and margin improved to 15.4%.
Defense Systems and Sentinel momentum
DS backlog rose to nearly $35B, including a $7.6B definitization increase on Sentinel. Sentinel progressed (acoustic test passed; first integrated missile first flight expected in 2027) and solid rocket motors for initial flight tests are already in production.
International wins and missile production positioning
Notable international momentum: NATO interest in Triton, Kuwait authorized 6 IBCS systems, Australia selected in-country solid rocket motor facility. Completed PAC-3 SRM qualification and secured a $2B framework agreement with DoD and Lockheed; management cites 10 multiyear missile agreements representing up to $10B of SRM opportunity over 7 years.
Space innovation and commercial opportunity
Space sales increased 4% in Q2 and national security space backlog exceeds $61.6B. First Mission Robotic Vehicle (MRV) — a commercial robotic satellite-servicing spacecraft capable of extending satellite life up to 8 years — was scheduled to launch, expanding commercial service offerings.

MX:NOC Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Oct 20, 2026
2026 (Q3)
129.78 / -
138.791―
2026 (Q2)
123.45 / 138.97
147.477-5.77% (-8.50)
2026 (Q1)
109.57 / 111.11
60.07684.94% (+51.03)
2025 (Q4)
126.36 / 130.83
115.62913.15% (+15.20)
2025 (Q3)
116.59 / 138.79
126.6679.57% (+12.12)
2025 (Q2)
125.26 / 147.48
115.08628.14% (+32.39)
2025 (Q1)
112.97 / 60.08
114.362-47.47% (-54.29)
2024 (Q4)
114.98 / 115.63
113.4571.91% (+2.17)
2024 (Q3)
110.07 / 126.67
111.82913.27% (+14.84)
2024 (Q2)
107.25 / 115.09
96.62919.10% (+18.46)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed