Northrop Grumman Lifts Outlook as Backlog Buildup Continues

By Dean Seal

Northrop Grumman raised its full-year guidance on the back of steady global demand.

The aerospace and defense company said it now expects $43.75 billion to $44.25 billion in sales in 2026, up from a previous target for $43.5 billion to $44 billion. Adjusted earnings should hit $28.60 to $29.10 a share instead of $27.40 to $27.90 a share as previously anticipated.

Chief Executive Kathy Warden said the company's backlog is surging to new records, thanks to robust global demand.

In the second quarter, the company posted a profit of $1.09 billion, or $7.68 a share, compared with $1.17 billion, or $8.15 a share, in the same quarter a year earlier. Analysts polled by FactSet had been expecting just $6.82 a share.

Total sales rose 5% to $10.88 billion, ahead of analyst targets for $10.8 billion. Northrop Grumman saw growth across its aeronautics, defense, mission and space segments.

Despite the top-line gains, operating income sank 38% in its defense systems segment and 16% in its space systems unit due to lower margins. Overall operating income was down 23%, primarily because of a $231 million gain from the year-earlier quarter due to a divestiture along with the margin compression in certain segments.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

July 21, 2026 07:46 ET (11:46 GMT)