Northrop Grumman Corporation Q3 2026 Earnings Recap

Northrop Grumman shares rose 4.6% after the company raised its 2026 guidance for segment operating income, margin rate, and EPS. A 1.5x book-to-bill and record $110 billion backlog supported the positive outlook, alongside expectations for accelerating growth in 2027.

Key Takeaways

• Third-quarter book-to-bill was 1.5x, lifting backlog to a record $110 billion.
• Segment operating margin exceeded 12%; management said it was raising 2026 guidance for segment operating income, margin rate, and EPS.
• The company expects 2027 growth, margin, and cash to accelerate, while maintaining its previously communicated cash-flow range despite increased B-21 investment.
• Northrop launched and deployed its first 21 satellites for the Space Development Agency’s Tranche 1 transport layer; nearly 50 launches are expected over the next six months.
• The Virginia-class Block VI award added $1.4 billion to backlog and covers 12 shipsets through 2032.