TLDR
- Northrop Grumman posted Q1 EPS of $6.14, beating the $6.05 estimate by $0.09
- Revenue came in at $9.88 billion, up 4% year-over-year, above the $9.76 billion estimate
- Aeronautics Systems segment sales rose 17%, driven by B-21 and Sentinel program expansion
- Operating income surged 73% to $989 million; segment operating margin improved to 10.8%
- Stock fell roughly 1.6% in premarket despite the beat, as full-year guidance was left unchanged
Northrop Grumman beat Wall Street estimates on both the top and bottom lines in Q1 2026, but the stock still moved lower in early trading Tuesday.
$NOC Q1’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $9.88B (Est. $9.76B) 🟢; +4% YoY
🔹 EPS: $6.14 (Est. $6.05) 🟢
🔹 Organic Sales Growth: +5%
🔹 Backlog: $95.6B
🔹 Net Awards: $9.8BFY Guide:
🔹 Revenue: $43.5B-$44.0B (Est. $43.9B) 🟡
🔹 MTM-Adjusted EPS: $27.40-$27.90 (Est.… pic.twitter.com/2mJEP9iIHa— Wall St Engine (@wallstengine) April 21, 2026
EPS came in at $6.14, clearing the consensus estimate of $6.05. Revenue reached $9.88 billion, up 4% from $9.47 billion in Q1 2025, and ahead of the $9.76 billion analysts had expected.
The biggest driver was the Aeronautics Systems segment, where sales jumped 17%. That was boosted by a deal with the U.S. Air Force to expand B-21 bomber production capacity and speed up the Sentinel program’s initial operating capability.
Northrop Grumman Corporation, NOC
Operating income surged 73% to $989 million. Operating margin expanded to 10.0% from just 6.1% a year ago. A large part of that improvement came from the absence of a $477 million B-21 loss provision that had weighed on Q1 2025 results.
Segment operating income rose 89% to $1.07 billion. Segment operating margin improved to 10.8% from 6.0%.
Net new awards totalled $9.8 billion in the quarter. Total backlog stood at $95.6 billion — more than twice the company’s annual sales.
Organic sales grew 5% year-over-year.
Guidance Held Steady
Northrop kept its full-year 2026 guidance unchanged. The company projects sales of $43.5 billion to $44.0 billion and MTM-adjusted EPS of $27.40 to $27.90.
Analysts currently forecast EPS of around $28 — above the top of that range. For context, when Northrop first issued guidance in January, analyst projections were closer to $29.
Free cash flow guidance remained at $3.1 billion to $3.5 billion. Segment operating income is expected between $4.85 billion and $5.0 billion.
CEO Kathy Warden called the results a demonstration of the company’s ability to deliver in “today’s unprecedented global demand environment.”
Stock Reaction
Despite the beat, NOC fell around 1.6% in premarket trading to $646.67. The S&P 500 and Dow futures were both up at the same time.
The stock had already gained 15% year-to-date coming into Tuesday, and around 24% over the past 12 months. It now trades at roughly 23 times forward earnings, up from about 19 times a year ago.
That elevated valuation may explain why a solid earnings beat wasn’t enough to push the stock higher.
🚨 Our April Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for April, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
