Key facts
- Northrop Grumman increased its 2026 revenue forecast by $250 million to $43.75 billion-$44.25 billion.
- The company now expects 2026 adjusted profit between $28.60 and $29.10 per share.
- Second-quarter sales increased to $10.88 billion from $10.35 billion a year prior.
- Total backlog grew 9% to $104.7 billion.
- The B-21 Raider program and Sentinel program contributed to sales growth.
Defense supplier Northrop Grumman announced on Tuesday that it has raised its sales and adjusted profit forecasts for 2026, citing sustained demand for weapons amidst ongoing global geopolitical conflicts. President Donald Trump has been urging defense companies to increase manufacturing capacity and boost weapons production due to depleted U.S. stockpiles from conflicts in Ukraine and the Middle East.
The company's largest revenue segment, Aeronautics, experienced a 13% rise in second-quarter sales compared to the previous year, largely driven by the B-21 Raider program and other classified projects. The B-21 Raider, a nuclear-capable long-range strike aircraft, secured a significant production boost in February with an agreement to expand production capacity by 25%, aiming for the first delivery in 2027.
Northrop's defense systems business saw a 5% increase in revenue, supported by strong sales in its Sentinel program. However, operating income in the defense sector declined by 38% due to increased company spending on the development and qualification of its Stand-in Attack Weapon and the long-range version of the Advanced Anti-Radiation Guided Missile, as well as mature production.
Northrop revised its 2026 revenue forecast upwards by $250 million, now projecting a range of $43.75 billion to $44.25 billion, which aligns with Wall Street estimates. The company also anticipates 2026 adjusted profit to be between $28.60 and $29.10 per share, an increase from its previous forecast of $27.40 to $27.90 per share. For the quarter ending June 30, Northrop reported total sales of $10.88 billion, up from $10.35 billion a year ago, with its total backlog increasing by 9% to $104.7 billion. The company's per-share quarterly profit was $7.68, compared to $8.15 in the prior year, which included a benefit from the divestiture of its training services business.