Northrop Grumman Q2 revenue edges past estimates; 2026 outlook lifted

Northrop Grumman

21/07/2026 11:56

    

    Overview
  
U.S. defense contractor's Q2 revenue rose 5% yr/yr, slightly beating analyst expectations
Diluted EPS for Q2 was $7.68, down from prior year due to divestiture gain in 2025
Company raised 2026 sales and MTM-adjusted EPS guidance on strong demand and record backlog

    

    Outlook
  
Northrop Grumman raises 2026 sales guidance to $43.75 bln-$44.25 bln
Company lifts 2026 MTM-adjusted EPS guidance to $28.60-$29.10
Northrop Grumman reaffirms guidance for operating income and adjusted free cash flow

    

    Result Drivers
  
SALES GROWTH - Q2 sales rose 5% yr/yr, led by increases across Aeronautics, Defense, Mission, and Space Systems segments, driven by continued strong demand for global capabilities
RECORD BACKLOG - Net awards of $20 bln increased backlog to a company record of $105 bln, reflecting robust demand for products
DIVESTITURE IMPACT - Prior-year Q2 net earnings included a $150 mln gain from the training services business divestiture, affecting year-over-year EPS comparison

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Revenue
Slight Beat*
$10.88 bln
$10.81 bln (18 Analysts)
Q2 EPS
 
$7.68
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

    

    Analyst Coverage
  
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 9 "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 $660.00, about 26% above its July 20 closing price of $523.96
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 24 three months ago

    

    Reuters Recommended Reads
  
July 20 - Lockheed to make cheaper Patriot interceptors as air defense demand soars
July 20 - Private investors must pile cash into defence to fill public funding gap, executives say
July 20 - Trump orders tightening of defense supply-chain waiver rules

    
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(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.)