NORTHROP GRUMMAN CORP /DE/NOC
NORTHROP GRUMMAN CORP /DE/ Financial Overview 2021–2025
Updated Jul 10, 2026Northrop Grumman ended FY2025 sitting on a $95.7 billion backlog, providing immense visibility into future U.S. defense spending. Despite absorbing heavy loss provisions on the B-21 Raider program, the contractor's entrenched position across space and mission systems is driving steady top-line expansion and resilient cash generation.
Total revenue grew from $35.7 billion in FY2021 to $41.95 billion in FY2025. This multi-year expansion included sharp profitability swings. In FY2023, a $1.56 billion charge on the B-21 program compressed margins and pushed earnings down to $13.53 per share. The core business rebounded in FY2024, delivering a 72% surge in operating income to $4.37 billion. Northrop Grumman further proved its cash-generation capability in FY2025, increasing free cash flow by 26% to $3.31 billion even after absorbing another $477 million B-21 loss provision in the first quarter. This liquidity fueled consistent shareholder returns, with management deploying $2.9 billion toward dividends and share repurchases during the final year of the period.
At the close of FY2025, the market valued the defense prime at an $81.0 billion market cap. The stock closed at $570.21 and traded at 19.6x earnings, reflecting a steady premium for its highly concentrated U.S. government revenue stream, which represented 84% of all sales for the year.
Recent Developments (Q4 2025 and Q1 2026)
Northrop Grumman entered Q1 2026 by securing an agreement to expand B-21 Raider production capacity. First-quarter sales grew 4% year-over-year to $9.88 billion. Operating income surged 73% to $989 million, expanding operating margins to 10.0% from 6.1%. Net earnings jumped 82% to $875 million, or $6.14 per share. The firm ended Q1 2026 with a $95.6 billion backlog. During Q4 2025, the company divested its Immersive Mission Solutions unit for $333 million, netting a $231 million pre-tax gain. In February 2026, the board expanded to 13 members with the election of Admiral Christopher W. Grady.
Bulls view the B-21 capacity expansion and stabilized 10.0% margins as proof that programmatic headwinds are fading. Bears warn that $1.66 billion in Q1 2026 operating cash usage reflects lingering working capital pressures. Trading at 21.0x earnings as of April 21, 2026, the stock's premium valuation demands flawless manufacturing execution.
What to watch: margin sustainability in Aeronautics Systems; progress on reversing operating cash outflows.
Rev
$41.95B
FY2025
NI
$4.18B
FY2025
EPS
$29.14
FY2025
OCF
$4.76B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
NORTHROP GRUMMAN CORP /DE/ 8-K Report, Shareholder Vote Results (May 21, 2026)
Northrop Grumman Corporation's (NOC) 8-K filing dated May 21, 2026, reports the final voting results from its 2026 Annual Meeting of Shareholders held on May 20, 2026. The report confirms that shareholders overwhelmingly approved all three management-sponsored proposals. These included the election of eleven directors, an advisory vote on executive compensation, and the ratification of Deloitte & Touche LLP as the independent auditor for the fiscal year ending December 31, 2026. Notably, a shareholder proposal seeking an independent board chair was not approved. The company's Board of Directors has stated it will carefully consider shareholder input and feedback on all proposals. The strong support for management's agenda suggests continued alignment between the board and its investors on key governance and operational matters.
NORTHROP GRUMMAN CORP /DE/ 8-K Report, Financial Results (Apr 21, 2026)
Northrop Grumman Corporation (NOC) has filed an 8-K report on April 21, 2026, to furnish its earnings release for the first quarter ended March 31, 2026. This filing provides investors with the company's official financial results and operational performance for the initial quarter of the fiscal year 2026. The earnings release, attached as Exhibit 99, is the primary source of detailed financial data and management commentary regarding the company's performance, strategic initiatives, and outlook. Investors should review this release for key metrics such as revenue, earnings per share, segment performance, and any forward-looking guidance provided by the company.
NORTHROP GRUMMAN CORP /DE/ 8-K Report, Executive Changes (Feb 13, 2026)
Northrop Grumman Corporation (NOC) announced a significant addition to its Board of Directors with the election of Admiral Christopher W. Grady, former Vice Chairman of the Joint Chiefs of Staff. This appointment, effective February 12, 2026, not only brings extensive military and strategic leadership experience to the board but also strengthens its oversight capabilities with Admiral Grady's placement on the Audit and Risk Committee and the Policy Committee. His compensation includes an annual retainer and equity grant, reflecting his senior role and contributions to the company. Beyond the board composition, the company also outlined its executive compensation framework for 2026. This includes the approval of performance goals under its annual incentive and long-term incentive plans, focusing on a balanced mix of financial metrics such as cash flow, segment operating income, and sales, alongside critical strategic performance indicators like Quality, Customer Satisfaction, and Sustainability. The structure of Restricted Performance Stock Rights (RPSR) and Restricted Stock Rights (RSR) remains largely consistent with prior years, emphasizing cumulative free cash flow, return on invested capital, and relative total shareholder return as key performance drivers for long-term incentives.
NORTHROP GRUMMAN CORP /DE/ 8-K Report, Financial Results (Jan 27, 2026)
Northrop Grumman Corporation (NOC) has filed a Form 8-K on January 27, 2026, to report its financial results for the fourth quarter and full year ended December 31, 2025. This filing primarily serves to furnish the company's earnings release, which contains the detailed financial performance for the specified periods. Investors should refer to the earnings release, furnished as Exhibit 99, for comprehensive information on revenue, profitability, and other key financial metrics. The release of these results marks a crucial point for investors to assess the company's operational performance, evaluate its progress against prior periods and guidance, and understand its financial health heading into the new fiscal year. While this 8-K itself is procedural, it signals the availability of critical financial data that will inform investment decisions and expectations regarding Northrop Grumman's strategic direction and market position.
NORTHROP GRUMMAN CORP /DE/ 8-K Report, Executive Changes (Nov 6, 2025)
Northrop Grumman Corporation (NOC) announced a significant leadership change within its finance department, appointing John Greene as its new Corporate Vice President and Chief Financial Officer (CFO), effective January 7, 2026. Mr. Greene brings a wealth of experience from prominent financial roles at Discover Financial Services, Bioverativ, Willis Group Holdings, HSBC Holdings, and General Electric, indicating a strong background in financial operations and strategy. This transition comes as the current CFO, Kenneth Crews, will step down from his role on the same effective date, remaining with the company in an advisory capacity until February 20, 2026, to ensure a seamless handover. In conjunction with his appointment, Mr. Greene will receive a base salary of $955,000, an annual incentive, a long-term incentive, and other benefits. He will also be granted Restricted Stock Rights valued at $2,000,000, reflecting a significant investment in his new role. The company also used this filing to reaffirm its previously announced fiscal year 2025 guidance, providing investors with continued confidence in the company's financial outlook amidst this executive transition.
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