Northrop Grumman Corporation (NOC) Earnings Call Transcripts

Northrop Grumman Corporation's Latest Earnings Call - Q2 FY2026

In the second quarter of 2026, Northrop Grumman Corporation reported strong financial results, with revenues reaching $10.9 billion, a 5% increase year-over-year. The company also delivered earnings per share (EPS) of $7.68, benefiting from a lower effective tax rate. Management raised their full-year sales guidance to a range of $43.75 billion to $44.25 billion, reflecting robust demand and a positive outlook for the second half of the year. The book-to-bill ratio improved to 1.84x, and backlog reached a record high of $105 billion, indicating strong future growth potential.

Reported metrics

Guidance from management

Management increased full-year sales guidance to $43.75 billion to $44.25 billion, with EPS guidance raised by $1.20 to a range of $28.60 to $29.10. They expect strong second-half sales growth and reaffirmed their outlook for segment operating income.

What management said

So as you noted, NASA is moving away from their original gateway plans. We are working with NASA to take the technology that we were developing under HALO program and still have that contribute to their future gateway plans. And so we are in the process of restructuring the contract to do that. It will reduced revenue this year, as we outlined in our filings, but it will extend it over a longer period of time as we w...

Yes, Sheila. So as I noted, we first needed to get through qualification, which we did in this quarter. We have production capacity, and we are starting to build. And we are doing that even ahead of definitized contract later this year so that we can support the increased demand for the program. We do expect be definitized for a larger production contract later this year as the funding becomes available through the a...

What analysts pressed on

Analysts expressed concerns regarding the margin pressure in the Defense Systems and Space segments due to unfavorable EAC adjustments. There were also questions about the impact of increased CapEx on free cash flow and the company's ability to maintain margins amidst rising costs.

Main topics on the call

• Revenue Growth and Guidance — Northrop Grumman raised its full-year sales guidance to $43.75 billion to $44.25 billion, indicating over 5% organic growth. Management stated, "We expect continued strong bookings for the remainder of the year as well a...
• Record Backlog — The company's backlog reached a record high of $105 billion, up 17% year-over-year. This growth in backlog is attributed to strong demand across all segments, with a book-to-bill ratio of 1.84x in Q2.
• Segment Performance — All four segments reported revenue growth, with Aeronautics leading at a 13% increase. However, the Defense Systems segment faced margin pressure due to unfavorable EAC adjustments on certain programs, specifically the S...
• International Demand — Management highlighted increasing international demand, particularly for the IBCS system and Triton aircraft. Kathy Warden noted, "Momentum continues to build in numerous countries to acquire our IBCS system which is pro...

Read the full Northrop Grumman Corporation transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 61 Northrop Grumman Corporation earnings call transcripts on record, spanning January 30, 2020 to July 21, 2026. Based on this history, Northrop Grumman Corporation reports quarterly. The most recent call on file is dated July 21, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

NOC

Exchange

NYSE

Country

US

Sector

Industrials

Industry

Aerospace and Defense

Calls on record

61

First call

January 30, 2020

Most recent

July 21, 2026

Reporting cadence

quarterly