Northrop Grumman Stock Earnings Reports

Northrop Grumman reported solid Q1 2026 results driven by sustained defense demand, with Q1 sales of $9.9B (organic +5%), $9.8B of awards in the quarter, and backlog of $96B. Management highlighted strong growth drivers: B-21 acceleration (Air Force agreement to raise annual production rate by 25%), Sentinel acceleration (Milestone B expected later this year, first flight 2027, IOC in early 2030s), expanded solid rocket motor and munitions capacity (weapons nearing ~10% of company sales and positioned to grow faster than company average), and missile defense strength (now ~10% of sales, including GPI funding). The company has invested >$1B in SRM and munitions, opened 20+ facilities and added >2M sq ft of manufacturing in the last two years, and plans incremental CapEx to support B-21 ramp (about $200M in 2026 and roughly $2.5B company-funded over multiple years thereafter). Q1 diluted EPS was $6.14; segment operating margin improved to 10.8% overall. Management reaffirmed 2026 guidance: full-year sales $43.5–44.0B, low-to-mid 11% segment margin range, and maintained free cash flow guidance of $3.1–3.5B despite increased CapEx (now $1.85B for 2026). Management emphasized a favorable contracting environment, long-term defense budget tailwinds, opportunities to accelerate international sales (notably the Middle East), and continued focus on supply-chain and supplier scaling to meet elevated demand. They expect cash generation to ramp later in the year (Q4 typically strongest) and view the B-21 production agreement as improving program economics and long-term ROIC.