Northrop Grumman Q1 revenue beats estimates on aeronautics systems strength

Northrop Grumman

21/04/2026 11:54

Overview

U.S. defense contractor's Q1 revenue grew 4%, beating analyst expectations

Diluted EPS for Q1 rose to $6.14 from $3.32 yr/yr

Company reaffirmed 2026 financial guidance and highlighted increased B-21 production capacity

Outlook

Company reaffirms 2026 guidance for sales, segment operating income, MTM-adjusted EPS, and free cash flow

Northrop Grumman sees continued strong demand and robust bookings

Result Drivers

AERONAUTICS SYSTEMS GROWTH - Higher sales in Aeronautics Systems, driven by increased B-21 production capacity, contributed most to revenue growth

PRIOR YEAR LOSS PROVISION - Operating income rose mainly due to the absence of the prior year's $477 mln B-21 loss provision at Aeronautics Systems

SPACE SYSTEMS DECLINE - Lower sales at Space Systems reflected the wind-down of the Next Generation Interceptor (NGI) program

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$9.9 bln
$9.75 bln (19 Analysts)
Q1 EPS
$6.14
Q1 Net Income
$875 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for Northrop Grumman Corp is $757.50, about 15.3% above its April 20 closing price of $656.98

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 20 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)