What are the main concerns in NORTHROP GRUMMAN CORP /DE/'s latest SEC filing?

The analysis identified 5 key concerns: The company reported modest revenue growth, with increases in Mission, Defense, and Aeronautics Systems, but faced headwinds from program wind-downs in Space Systems.; Goodwill decreased by $85 million primarily due to a divestiture of a business segment, which is a significant event impacting asset base.; Significant unrecognized tax benefits of $1.6 billion..

What are the top risks for NORTHROP GRUMMAN CORP /DE/ (NOC)?

The top risks identified in the 10-K filing are: Customer Concentration (U.S. Government), Supply Chain Disruptions, Cyber and Security Threats. The company faces high risks due to significant customer concentration with the U.S. government, ongoing supply chain vulnerabilities, and substantial cyber security threats. While competitive and geopolitical risks are present, they are managed within a stable overall risk landscape.

NOC - Comprehensive Filing Intelligence

FYNone•10-K•Filed Jan 27, 2026

5.0/10

Filing Health:CAUTION

Notable concerns that warrant closer review

Executive Summary

The company reported modest revenue growth, with increases in Mission, Defense, and Aeronautics Systems, but faced headwinds from program wind-downs in Space Systems.. Operating income was boosted by a one-time gain from divestiture and favorable adjustments, but was impacted by a significant loss provision on the B-21 program.. Significant unrecognized tax benefits of $1.6 billion.. Space Systems sales decreased by 8% due to program wind-downs.

Top Concerns

!The company reported modest revenue growth, with increases in Mission, Defense, and Aeronautics Systems, but faced headwinds from program wind-downs in Space Systems.
!Goodwill decreased by $85 million primarily due to a divestiture of a business segment, which is a significant event impacting asset base.
!Significant unrecognized tax benefits of $1.6 billion.
!Potential for material impact on financial position and results from environmental matters, with 92% estimated recoverability.
!Customer Concentration (U.S. Government) (high)

Analysis Dimensions

Our 5-pass AI analysis examines this filing across multiple dimensions. Each dimension score is derived from direct analysis of SEC filing text.

Narrative Intelligence

7.0/10

Management tone is balanced.

Full analysis includes: tone changes vs prior quarter, margin driver breakdown, forward guidance analysis, strategic priorities.

Accounting Quality

7.0/10

Earnings quality shows moderate accounting practices.

Full analysis includes: reserve and allowance changes, non-recurring item analysis, stock-based compensation impact, disclosure concerns.

Hidden Liabilities

Off-balance sheet risk is moderate.

Full analysis includes: cloud and purchase commitments, VIE/SPE exposure, covenant compliance status, refinancing risk assessment.

Risk Landscape

3.0/10

Overall risk profile shows customer concentration (u.s. government) as primary concern.

Full analysis includes: 8 risk categories with severity, new vs escalated risks, management response assessment, risk trend analysis.

Segment Performance

6.0/10

Segment health analysis shows Mission Systems as strongest performer while Space Systems lags.

Full analysis includes: segment-by-segment revenue breakdown, geographic concentration risk, customer concentration analysis, segment margin trends.