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NOC · Q2 2026

NORTHROP GRUMMAN CORP /DE/

Reported 2026-07-21
BEAT
43EarnIQ signal
↗

Confidence rising

Mild quarter-over-quarter shift

Record backlog and raised guidance indicate strong secular demand despite program-specific cost execution headwinds.

  • ✓Guidance was raised, with high specificity.
  • ✓Management tone registered as confident (85/100).
  • ✓EarnIQ detected 0 potential management deflections.
Headline–confidence gap

Headline confirmed

Management confidence reinforces the reported beat.

EPS: reported vs expected+11.5%$7.68 vs $6.89
Revenue: reported vs expected—— vs —
Guidance specificityHighRaised
Market expectations supplied by Finnhub · Reported vs consensus estimate

Northrop Grumman achieved a new record backlog, driven by robust global demand for our products.

Premium intelligence

The evidence behind the signal

Full report
Management language

Why confidence moved

“Northrop Grumman achieved a new record backlog, driven by robust global demand for our products”
“We are raising our sales and EPS guidance for the year based on our confidence in our team and the demand for our technologies.”
“As momentum accelerates across our portfolio and the budgets continue to support demand, we remain focused on delivering for our customers with speed and precision”
Guidance specificity
90/100

High specificity

Company increased 2026 sales guidance by $250M to $43.75B-$44.25B and MTM-adjusted EPS guidance by $1.20 to $28.60-$29.10.

Pressure point
!

Cost growth and unfavorable EAC

0 potential deflections detected in management communication.

Narrative break

What changed

No material narrative break was detected this quarter.

Q&A evidence

Management responses

No material Q&A deflections were detected.

Key positives
  • Net awards of $20 billion increased backlog to a new company record of $105 billion.
  • Sales increased 10 percent sequentially and 5 percent year-over-year to $10.9 billion.
  • Raised full-year 2026 financial guidance for both sales and MTM-adjusted EPS.
Key risks
  • Cost growth and unfavorable EAC adjustments in missile defense programs like SiAW and GEM 63XL.
  • Dependence on U.S. government defense budgets, appropriations processes, and potential shutdown risks.
  • Inflationary pressures, labor shortages, and supply chain challenges affecting execution.
Topic velocity

Language versus prior quarter

M&ANew
CostNew
ChinaNew
MarginNew
RecordNew
iPhoneNew
Signal composition

What drove the EarnIQ score

Tone+20
Eps Beat+0
Guidance+15
New Signal+0
Miss Penalty+0
Qoq Improvement+8
Deflection Penalty+0