NORTHROP GRUMMAN CORP /DE/ Earnings Summary — Q1 2026

• Revenue grew 4.36% YoY to $9.88 billion, maintaining momentum in high-end defense programs.
• Net income surged 81.91% compared to the same quarter last year, reflecting improved operational execution.
• Operating income nearly doubled YoY, rising from $573 million in Q1 2025 back to $989 million.
• Share count reduction continues, with diluted shares outstanding down 1.38% YoY to 143 million.
• The B-21 Raider and Sentinel programs remain primary long-term revenue drivers with high visibility.
• Margins are stabilizing in the 10% range despite ongoing inflationary pressures in the defense sector.
• The backlog remains robust, providing a foundation for multi-year growth as a technology integrator.

Management remains focused on technological superiority and operational discipline, specifically targeting ROIC and FCF generation while navigating risks associated with fixed-price development contracts like the B-21 production charges.

Improving

The significant recovery in net profit and operating income compared to the depressed levels of early 2025 indicates successful navigation of recent cost and production hurdles.

Northrop Grumman is well-positioned to capture the 'high ground' in Space and Stealth sectors, with a conviction-heavy backlog approaching $80 billion ensuring revenue stability despite defense budget shifts.