Northrop Grumman Corporation reported a notable increase in financial performance for the third quarter of 2026, with total sales reaching $11.1 billion, a 7% rise from $10.4 billion in the same period last year. The company's net earnings also saw a 2% increase, amounting to $1.1 billion, compared to $1.1 billion in the prior year. Basic earnings per share rose to $7.91 from $7.69, while diluted earnings per share increased to $7.89 from $7.67. Year-to-date figures showed total sales of $31.9 billion, up 5% from $30.2 billion, and net earnings of $3.1 billion, a 12% increase from $2.8 billion.
The company experienced growth across all four of its sectors: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. Aeronautics Systems led the way with a 14% increase in sales, driven by higher demand for the F-35 and B-21 programs. Defense Systems reported a 12% increase in sales, attributed to the ramp-up of the Sentinel program and increased volume in tactical solid rocket motor programs. Mission Systems and Space Systems also contributed to the overall growth, albeit at a more modest pace of 2% each.
In terms of operational developments, Northrop Grumman's backlog as of September 30, 2026, stood at $109.6 billion, reflecting a 15% increase from $95.7 billion at the end of 2025. The company secured $16.4 billion in new awards during the third quarter, including significant contracts for restricted programs and the Sentinel program. The total backlog indicates a strong pipeline of future revenue, with approximately 35% expected to be recognized as revenue over the next 12 months.
The filing also highlighted strategic developments, including the company's ongoing investment in expanding production capacity for the B-21 program, with an expected investment of approximately $2.5 billion over several years. This expansion aims to enhance production rates and improve returns on the low-rate initial production phase of the program. Additionally, Northrop Grumman's cash and cash equivalents totaled $3.7 billion as of September 30, 2026, providing a solid liquidity position to support ongoing operations and strategic initiatives.
Looking ahead, Northrop Grumman remains optimistic about its growth prospects, driven by the increasing demand for defense products and services amid a dynamic global security environment. The company is focused on leveraging its advanced technologies and capabilities to meet customer needs while navigating potential challenges related to macroeconomic conditions and government funding uncertainties.
About NORTHROP GRUMMAN CORP /DE/
Northrop Grumman is a leading aerospace and defense technology company providing space systems, military aircraft, missile defense, mission systems, and advanced electronics. Serving primarily the U.S. government and international customers, it offers integrated solutions for national security, including stealth aircraft, satellites, missile interceptors, and cyber capabilities. Its business model focuses on long-term government contracts, innovation, and technological leadership in defense and space markets.
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