Northrop Grumman Corporation 8-K
PositiveEarningsGuidance raised
Aeronautics and Defense Systems sales grow; FY2026 MTM-adjusted EPS guidance rises to $29.35–$29.75
Filed 2026-10-20 06:00 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with raised FY2026 guidance. Sales grew across all four sectors. Northrop Grumman raised its segment operating income and MTM-adjusted EPS guidance; its CEO said record backlog and investments support expected sales and earnings growth in 2027.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Sales | $11.1B, +7% Y/Y | $31.9B, +5% Y/Y |
| Operating income | $1.27B, +2% Y/Y | $3.35B, +4% Y/Y |
| Operating margin rate | 11.4%, vs 11.9% | 10.5%, vs 10.7% |
| Net earnings | $1.12B, +2% Y/Y | $3.09B, +12% Y/Y |
| Diluted EPS | $7.89, +3% Y/Y | $21.72, +14% Y/Y |
| Net cash provided by operating activities | $1.75B, +12% Y/Y | $1.37B, +59% Y/Y |
| Adjusted free cash flow, non-GAAP | $1.81B, +44% Y/Y | $965M, vs $72M |
- Growth reflected all four sectors; Aeronautics Systems sales rose 14% and Defense Systems sales rose 12%. Segment operating income, a non-GAAP measure, increased 5% to $1.35B; its margin rate was 12.1%, vs 12.3%, partly reflecting a prior-year $68M favorable Mission Systems adjustment.
- Net awards were $16.4B and backlog reached $109.6B, up 15% from 12/31/2025; book-to-bill was 1.5x.
- Adjusted free cash flow growth reflected $371M in proceeds from equipment sold to a customer and higher operating cash flow. 9M share repurchases were $68M vs $1.17B; weighted-average diluted shares fell 1% Y/Y to 142.4M.
Guidance
2026 guidance excludes impacts from a prolonged government shutdown or spending limits or cuts.
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Sales | FY2026 | $43.75B-$44.25B | — | — |
| Segment operating income, non-GAAP | FY2026 | $4.94B-$5.04B | $4.85B-$5B | Raised |
| MTM-adjusted EPS, non-GAAP | FY2026 | $29.35-$29.75 | $28.60-$29.10 | Raised |
| Adjusted free cash flow, non-GAAP | FY2026 | $3.1B-$3.5B | — | — |
| Aeronautics Systems sales; operating margin rate | FY2026 | ≈$14B; high 9% | —; mid to high 9% | — |
| Defense Systems sales; operating margin rate | FY2026 | Mid to high $8B; ≈10% | — | — |
| Mission Systems sales; operating margin rate | FY2026 | High $12B; mid 15% | —; ≈15% | — |
| Space Systems sales; operating margin rate | FY2026 | ≈$11B; low 10% | — | — |
| Intersegment eliminations; operating margin rate | FY2026 | ≈$(2.7)B; mid 13% | — | — |
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Sales | FY2026 | $43.75B-$44.25B | $43.75B-$44.25B | reaffirmed |
| Segment operating income, non-GAAP | FY2026 | $4.85B-$5B | $4.94B-$5.04B | raised |
| MTM-adjusted EPS, non-GAAP | FY2026 | $28.60-$29.10 | $29.35-$29.75 | raised |
| Adjusted free cash flow, non-GAAP | FY2026 | $3.1B-$3.5B | $3.1B-$3.5B | reaffirmed |
| Aeronautics Systems sales; operating margin rate | FY2026 | ≈$14B | ≈$14B; high 9% | reaffirmed |
| Defense Systems sales; operating margin rate | FY2026 | Mid to High $8B | Mid to high $8B; ≈10% | reaffirmed |
| Mission Systems sales; operating margin rate | FY2026 | High $12B | High $12B; mid 15% | reaffirmed |
| Space Systems sales; operating margin rate | FY2026 | ≈$11B | ≈$11B; low 10% | reaffirmed |
| Intersegment eliminations; operating margin rate | FY2026 | ≈$(2.7)B | ≈$(2.7)B; mid 13% | reaffirmed |
Investor Takeaways
- FY2026 results against the raised segment operating income and MTM-adjusted EPS ranges will show whether the higher outlook is being delivered.
- The 2027 outlook will indicate whether the company’s stated sales and earnings growth expectations are supported by its record backlog.
The summary is written by an AI model reading the filing.
Model 005 · prompt v95 · 2026-10-20 14:35:11Z