Summary
Northrop Grumman Corporation reported strong financial performance for the first quarter ended March 31, 2026. Total sales increased by 4% year-over-year to $9.88 billion. Notably, the company's operating income saw a significant surge of 73%, reaching $989 million, and the operating margin rate improved to 10.0% from 6.1% in the prior year period. This improvement was primarily driven by the absence of a substantial loss provision related to the B-21 program that impacted the prior year's results, as well as favorable contract adjustments across segments. Net earnings also saw a substantial increase of 82% to $875 million, resulting in a diluted earnings per share of $6.14, up from $3.32 in the same period last year. The company generated $95.6 billion in backlog as of March 31, 2026, indicating a strong pipeline of future work. While the company experienced a net cash usage of $1.66 billion from operating activities, this is consistent with historical trends and is expected to be managed through existing liquidity and potential further financing. The company maintained its financial strength with $2.1 billion in cash and cash equivalents. Key operational highlights include the agreement to expand B-21 production capacity, which is expected to improve long-term program returns. The company continues to navigate a dynamic global security and economic environment, with a significant portion of its revenue still derived from U.S. government contracts. Despite ongoing supply chain and inflationary pressures, Northrop Grumman has demonstrated resilience and a strong ability to manage its costs and improve profitability in the current quarter.
Financial Highlights
48 data points| Revenue | $9.88B |
| Operating Expenses | $8.89B |
| Operating Income | $989.00M |
| Net Income | $875.00M |
| EPS (Basic) | $6.16 |
| EPS (Diluted) | $6.14 |
| Shares Outstanding (Basic) | 142.10M |
| Shares Outstanding (Diluted) | 142.50M |
Key Highlights
- 1Total sales increased 4% to $9.88 billion in Q1 2026.
- 2Operating income surged 73% to $989 million, with the operating margin rate improving to 10.0%.
- 3Net earnings rose 82% to $875 million, and diluted EPS grew to $6.14.
- 4Backlog remained robust at $95.6 billion as of March 31, 2026.
- 5Aeronautics Systems segment performance significantly improved due to the absence of prior-year B-21 program losses.
- 6The company reached an agreement to expand production capacity and increase the aircraft production rate for the B-21 program.
- 7Cash and cash equivalents stood at $2.09 billion, though net cash used in operating activities was $1.66 billion.