Northrop Grumman reported a strong first quarter with increased sales and significant net earnings growth, driven by robust demand across its diverse portfolio and improved operational performance, particularly in the Aeronautics Systems segment. The company reaffirmed its full-year financial guidance, indicating confidence in its strategic execution and market position.
Total sales increased 4% year-over-year to $9.881 billion, with organic sales growing 5%.
positiveNet earnings more than doubled to $875 million, or $6.14 per diluted share, an 85% increase from the prior year.
positiveOperating income increased 73% to $989 million, and operating margin rate improved significantly to 10.0% from 6.1%.
positiveSegment operating income surged 89% to $1.072 billion, with segment operating margin rate improving to 10.8% from 6.0%.
positiveCompany reaffirms 2026 financial guidance for sales, segment operating income, MTM-adjusted EPS, and free cash flow.
positiveNet cash used in operating activities was $1.656 billion, a 6% increase in cash outflow compared to the prior year.
attentionFree cash flow was negative $1.823 billion, comparable to the prior year's negative $1.821 billion, indicating continued cash burn.
attentionSpace Systems segment sales decreased 3% to $2.480 billion, and operating income decreased 17% to $235 million, primarily due to the wind-down of the NGI program and an unfavorable EAC adjustment on the GEM 63XL program.
attentionDefense Systems segment operating margin rate decreased slightly to 9.7% from 9.9% due to lower net EAC adjustments.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Aeronautics Systems | N/A | — | — | — | — |
Defense Systems | N/A | — | — | — | +10.0% |
Mission Systems | N/A | — | — | — | — |
Space Systems | N/A | — | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Northrop Grumman delivered strong first quarter results, with continued robust bookings, mid-single-digit organic sales growth, and solid operating performance, underscoring our ability to deliver in today’s unprecedented global demand environment.
With our diverse portfolio, robust manufacturing capacity, and proven performance, we’re delivering differentiating technology at speed and scale in support of our customers’ needs.
First quarter 2026 sales increased $413 million, or 4 percent, due to higher sales of $469 million at Aeronautics Systems, as well as higher sales at Defense Systems and Mission Systems.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.