Description

Northrop Grumman’s $3 Billion CapEx Quarter — Will Its B-21 Bet Pay Off?

Northrop Grumman Corporation’s third-quarter 2026 results underline ongoing execution across a broadly diversified portfolio focused on defense and space technologies. The company reported a 7% year-over-year increase in sales to $11.1 billion and a 3% rise in diluted earnings per share to $7.89. Backlog expanded 20% to a record $110 billion, driven by a book-to-bill ratio of 1.5x, reflecting strong demand and sustained order intake. Segment operating margins grew to 12.1%, supported by execution discipline and favorable product mix, with notable contributions from Aeronautics, Defense Systems, Mission Systems, and Space Systems segments. Aeronautics benefited from increased production volumes on programs such as F-35 and B-21, achieving a 14% sales increase and margin expansion to 10.5%. Defense Systems showed 12% sales growth driven by Sentinel and solid rocket motor programs, with an operating margin of 10.8%. Mission Systems improved operating income to 15.