Northrop Grumman stock gains momentum from backlog and guidance

Published on 11/02/2026 at 16:19 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Northrop Grumman stock follows stronger quarterly sales and a record backlog. Management raised key 2026 profit guidance while maintaining its sales outlook.

Northrop Grumman enters a stronger growth phase

Third-quarter sales rose across all four sectors, led by Aeronautics Systems and Defense Systems.
Net awards lifted the backlog to a record level and pushed the book-to-bill ratio to 1.5 times.
Management raised its 2026 segment operating income and MTM-adjusted earnings guidance.
The company projects sales growth of 5% to 7% for 2027.

Northrop Grumman, US6668071029, Illustration mit AI erstellt.

Northrop Grumman reported stronger third-quarter results on October 20, 2026, with sales up 7 percent year over year and new awards lifting its backlog to a record level. The company also increased its 2026 profit outlook, giving investors a clearer view of the earnings path into 2027.

The latest quote adds a separate market update: Northrop Grumman stock traded at 495.10 euros on Lang & Schwarz at 16:08 CET on Monday, November 2, 2026. That is 1.39 percent below the 502.10 euros cited in the October 27 own report, a move that exceeds the one-percent threshold for a new second main-values edition. This comparison is separate from the daily Xetra close.

Sales growth reaches every sector

According to the Northrop Grumman earnings release, third-quarter sales reached 11.122 billion US dollars, compared with 10.423 billion US dollars a year earlier. Aeronautics Systems grew 14 percent, while Defense Systems advanced 12 percent. Mission Systems and Space Systems each increased sales by 2 percent.

Segment operating income rose 5 percent to 1.345 billion US dollars, with a segment operating margin of 12.1 percent. Reported diluted earnings per share increased to 7.89 US dollars from 7.67 US dollars, while net earnings rose 2 percent to 1.124 billion US dollars.

Backlog supports the longer outlook

Net awards totaled 16.4 billion US dollars in the quarter, including awards for restricted programs, Sentinel, Virginia-class submarines, F-35 aircraft and E-2 aircraft. The backlog reached 109.6 billion US dollars, and the 1.5 times book-to-bill ratio indicates that new contract awards exceeded quarterly sales.

Northrop Grumman raised its 2026 segment operating income guidance to 4.940 billion to 5.040 billion US dollars from 4.850 billion to 5.000 billion US dollars. MTM-adjusted earnings guidance increased to 29.35 to 29.75 US dollars per share from 28.60 to 29.10 US dollars, while sales guidance remained at 43.750 billion to 44.250 billion US dollars.

Management expects 2027 sales growth of 5 percent to 7 percent across all four sectors. For investors, the combination of backlog visibility and higher guidance supports the growth case, while execution on large programs and margin development remain key factors.

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