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SandboxAQ unveils hardware-agnostic AQNav software platform for rapid integration across defense systems

, /PRNewswire/ -- SandboxAQ announced it has successfully completed the world's first reported test of a magnetic navigation (MagNav) system on an attritable platform – Northrop Grumman's Lumberjack®, a Group 3 UAS attritable drone. It was also the world's first reported instance of a MagNav system being paired with a visual navigation system on an attritable, one-way attack platform. SandboxAQ has collaborated with Northrop Grumman (NYSE: NOC) to integrate and test its commercial, dual-use, AQNav MagNav technology on this unmanned aircraft system.

Northrop Grumman's Lumberjack® Conflicts in Ukraine and the Persian Gulf States prove small, expendable drones are now regularly operating in GPS-denied and spoofed environments. UAVs are a tool of war in these conflicts and militaries around the world are ramping up their stockpiles of drones. Northrop Grumman's Lumberjack, a one-way-attack drone, was designed and developed in under 14 months of its first flight. The versatility and modularity of this technology highlights Northrop Grumman's multi-use, loitering munition capabilities.

"Today's platforms need navigation systems they can trust as they operate in increasingly complex and contested environments. In collaboration with SandboxAQ, Northrop Grumman is aggressively enhancing our ecosystem of autonomous and unmanned systems with resilient and flight-hardened alternative navigation systems," said Max Schuster, program manager, Lumberjack, Northrop Grumman. "Pairing AQNav with Northrop Grumman's experience in unmanned aircraft and open mission systems will ensure our joint forces have an operationally validated navigation capability in even the most contested domains."

"AQNav's ability to provide unjammable navigation and positioning without GPS complements Northrop Grumman's efforts to fulfill the operational and mission-specific requirements for autonomous aircraft and shape the future of next generation unmanned platforms," said Luca Ferrara, General Manager of Navigation at SandboxAQ. "Leveraging our proven MagNav technologies and drone platform expertise, the flight test with Northrop Grumman further demonstrates the ease by which our AQNav software can be integrated into unmanned systems at the speed and scale required by leading defense organizations."

AQNav enables continuous positioning without reliance on satellite or other externally transmitted signals. Its passive, all-weather, and terrain-agnostic navigation can serve as a standalone capability or complement inertial, visual, and satellite navigation systems, advancing the future of alternative positioning, navigation and timing (Alt-PNT). In addition, AQNav's proven ability to operate over open water, feature-limited terrain, urban landscapes, and GPS-denied environments makes aircraft platforms more resilient and mission-capable.

AQNav's Software Expands Accessibility Across Platforms
Our AQNav software platform, demonstrated during the recent flight, extends the company's proven MagNav capabilities into a software-first architecture designed for rapid integration with current and future defense systems. This novel, hardware-agnostic offering processes sensor data in real-time, applies physics-based models to determine positioning and provides continuous navigation that can be easily incorporated into a broader PNT architecture.

The software is designed to run on existing onboard compute infrastructure with operationally relevant latency, reducing the need for additional processing hardware. It supports open architecture interfaces that simplify integration across platforms.

"AQNav now offers OEMs two distinct paths for deployment – a full-stack, performance-optimized solution that's built natively into your platform architecture, or a software-only solution developed specifically to deploy within existing architecture," said Ferrara. "With Northrop Grumman's Lumberjack, our engineers were able to install AQNav software into existing systems in less than an hour, giving the attritable platform MagNav capabilities for enhanced mission performance."

Proven Performance Across Defense and Commercial Applications
Since 2023, AQNav has been flight-tested by military, government, and commercial aerospace partners including Airbus and Boeing. SandboxAQ has worked closely with the United States Air Force to flight-test AQNav for more than three years, including testing aboard C-17 Globemaster III and C-130J Super Hercules transports and participating in three large-scale military exercises. AQNav was also selected to participate in the 2025 NATO DIANA cohort.

AQNav currently participates in the Defense Innovation Unit's (DIU) Transition of Quantum Sensing program (TQS), which tests MagNav technologies for military autonomous systems. Under that program, SandboxAQ integrated its AQNav software on a Group 3 unmanned aircraft platform and is evaluating its performance against defense-relevant use cases. The work with Northrop Grumman builds on those integration patterns and advances a shared objective of delivering scalable, resilient navigation for unmanned operations in GPS-contested environments.

About Lumberjack®
Northrop Grumman is the mission systems integrator, munitions and systems provider of many of the technologies that enable the aircraft to sense, detect and deter threats in the battlespace. ESAero Inc., a wholly owned subsidiary of AV Inc., provides the Lumberjack air vehicle and its systems integration.

About Northrop Grumman
Northrop Grumman (NYSE: NOC) is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world, and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers' toughest problems, our employees define possible every day.

About SandboxAQ
SandboxAQ is a B2B company delivering solutions at the intersection of AI and quantum techniques. The company's Large Quantitative Models (LQMs) deliver critical advances in life sciences, financial services, navigation, and other sectors. SandboxAQ is an independent, growth-backed company funded by leading investors and strategic partners including funds and accounts advised by T. Rowe Price Associates, Inc., Google, Alger, IQT, US Innovative Technology Fund, S32, Paladin Capital, BNP Paribas, Eric Schmidt, Breyer Capital, Ray Dalio, Marc Benioff, Thomas Tull, and others. For more information, visit www.sandboxaq.com.

SOURCE SandboxAQ

California State Teachers Retirement System increased its position in shares of Northrop Grumman Corporation (NYSE:NOC – Free Report) by 50,207.8% during the second quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 105,745,489 shares of the aerospace company’s stock after buying an additional 105,535,292 shares during the quarter. California State Teachers Retirement System owned about 74.45% of Northrop Grumman worth $53,857,235,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the company. Pictet Asset Management Holding SA increased its position in shares of Northrop Grumman by 7.0% during the first quarter. Pictet Asset Management Holding SA now owns 61,436 shares of the aerospace company’s stock worth $41,914,000 after acquiring an additional 4,041 shares in the last quarter. Geode Capital Management LLC lifted its position in Northrop Grumman by 0.6% in the 4th quarter. Geode Capital Management LLC now owns 3,149,478 shares of the aerospace company’s stock valued at $1,793,478,000 after acquiring an additional 17,948 shares in the last quarter. World Investment Advisors lifted its position in Northrop Grumman by 70.1% in the 4th quarter. World Investment Advisors now owns 4,497 shares of the aerospace company’s stock valued at $2,564,000 after acquiring an additional 1,853 shares in the last quarter. Franklin Resources Inc. boosted its stake in Northrop Grumman by 4.3% during the 4th quarter. Franklin Resources Inc. now owns 3,125,139 shares of the aerospace company’s stock valued at $1,781,986,000 after purchasing an additional 128,855 shares during the last quarter. Finally, Focus Partners Wealth boosted its stake in Northrop Grumman by 8.1% during the 4th quarter. Focus Partners Wealth now owns 115,660 shares of the aerospace company’s stock valued at $66,000,000 after purchasing an additional 8,706 shares during the last quarter. Institutional investors own 83.40% of the company’s stock.

Wall Street Analyst Weigh In Several analysts have recently commented on the company. Citigroup increased their price objective on Northrop Grumman from $617.00 to $667.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Wells Fargo & Company reaffirmed an “overweight” rating and set a $620.00 target price on shares of Northrop Grumman in a research report on Wednesday, July 8th. Jefferies Financial Group decreased their price target on Northrop Grumman from $620.00 to $580.00 and set a “hold” rating for the company in a report on Friday, June 26th. JPMorgan Chase & Co. lowered their price target on Northrop Grumman from $635.00 to $600.00 and set a “neutral” rating for the company in a research report on Thursday, July 23rd. Finally, The Goldman Sachs Group dropped their price objective on Northrop Grumman from $603.00 to $533.00 and set a “neutral” rating on the stock in a research note on Tuesday, July 14th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $661.30.

Read Our Latest Analysis on Northrop Grumman Insider Buying and Selling In other news, Director Mark Welsh, III sold 95 shares of Northrop Grumman stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $547.53, for a total value of $52,015.35. Following the completion of the transaction, the director owned 4,393 shares in the company, valued at $2,405,299.29. This trade represents a 2.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.21% of the stock is currently owned by company insiders.

Northrop Grumman Stock Performance NYSE:NOC opened at $513.89 on Monday. The company has a debt-to-equity ratio of 0.81, a current ratio of 1.17 and a quick ratio of 1.06. The business has a fifty day simple moving average of $544.64 and a two-hundred day simple moving average of $598.31. Northrop Grumman Corporation has a 1 year low of $479.02 and a 1 year high of $774.00. The company has a market capitalization of $72.99 billion, a P/E ratio of 16.32, a P/E/G ratio of 3.02 and a beta of -0.11.

Northrop Grumman (NYSE:NOC – Get Free Report) last issued its earnings results on Tuesday, July 21st. The aerospace company reported $7.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.82 by $0.86. The firm had revenue of $10.88 billion for the quarter, compared to analyst estimates of $10.80 billion. Northrop Grumman had a return on equity of 24.25% and a net margin of 10.48%.The business’s revenue was up 5.1% on a year-over-year basis. During the same period in the previous year, the company posted $8.15 earnings per share. Northrop Grumman has set its FY 2026 guidance at 28.600-29.100 EPS. On average, analysts expect that Northrop Grumman Corporation will post 28.97 earnings per share for the current year.

Northrop Grumman Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Monday, August 31st will be paid a $2.47 dividend. This represents a $9.88 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Monday, August 31st. Northrop Grumman’s payout ratio is currently 31.39%.

(Free Report)

Northrop Grumman Corporation (NYSE: NOC) is a leading U.S.-based aerospace and defense company that designs, builds and sustains advanced systems, products and technologies for government and commercial customers. Formed through the combination of Northrop and Grumman businesses in the 1990s, the company’s portfolio spans manned and unmanned aircraft, space systems, missile defense, radar and sensor systems, and integrated command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) solutions.

The company’s work includes airframe and platform manufacturing, space hardware and satellite systems, advanced mission systems and cybersecurity services, as well as logistics, sustainment and modernization programs.

Featured Articles Five stocks we like better than Northrop Grumman AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains Want to see what other hedge funds are holding NOC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Northrop Grumman Corporation (NYSE:NOC – Free Report).

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Passive income investors owe it to themselves to consider this defense contractor.

*Stock prices used were the afternoon prices of Aug. 28, 2026. The video was published on Aug. 30, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of NOC, LHX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Northrop Grumman Chair, CEO and President Kathy Warden discusses doing business with the Trump administration, working on the Golden Dome space defense system and how geopolitical tensions and active conflicts are fueling a global defense spending boom. She speaks with Bloomberg's Kailey Leinz at a Newsmakers event in Washington.

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Stock to Watch: Northrop Grumman (NOC - Free Report) Originally formed in 1939 as Northrop Aircraft Incorporated and reincorporated in 1985 as Northrop Corporation in Delaware, Northrop was a principal developer of flying wing technology. In 1994, the company acquired Grumman Corporation (Grumman), after which the company was renamed Northrop Grumman Corporation. Currently, this global security company supplies a broad array of products like space systems, military aircraft, missile defense, advanced weapons and long-range fire capabilities, mission systems, networking and communications, strategic deterrence systems, and breakthrough technologies, such as advanced computing, microelectronics and cyber. As of Dec 31, 2025, the company operates through the following reportable segments:

NOC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Aerospace stock. NOC has a Momentum Style Score of B, and shares are up 1.9% over the past four weeks.

Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.85 to $28.83 per share. NOC boasts an average earnings surprise of +8.7%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, NOC should be on investors' short list.

Lockheed Martin Corp. (NYSE:LMT), RTX Corp. (NYSE:RTX) and Northrop Grumman Corp. (NYSE:NOC) could all be indirect beneficiaries of the Trump administration‘s latest $1.55 billion push to secure rare earth supplies, as Washington deepens its effort to reduce dependence on China for minerals critical to advanced weapons systems.

On Monday, USA Rare Earth Inc. (NASDAQ:USAR) announced the completion of a $1.55 billion capitalization for a government-backed special purpose vehicle tied to its planned acquisition of Brazil’s Serra Verde rare earth operation. The financing package includes a $750 million investment from the U.S. Department of War, a $500 million senior debt facility and a five-year, $300 million government forward purchase agreement for rare earth materials.

The deal underscores Washington’s growing willingness to use government capital to reduce U.S. dependence on China for minerals essential to military hardware.

Rare Earths Are More Than An EV StoryRare earth elements are equally critical to national defense as they are to electric vehicles and wind turbines.

Neodymium, praseodymium, dysprosium and terbium—the four magnetic rare earth elements produced by Serra Verde—are used in high-performance permanent magnets found in fighter aircraft, guided missiles, radar systems, drones, submarines and precision-guided weapons. They’re also essential for numerous aerospace and defense electronics.

Read Next

That explains why the Department of War isn’t just helping finance the project—it’s also committing to purchase material over the next five years.

Why Investors Should Watch Defense StocksThe announcement doesn’t immediately change earnings forecasts for major defense contractors.

However, it reinforces a broader trend that investors have been watching closely: securing domestic and allied supply chains has become a strategic priority alongside increasing defense spending.

Companies such as Lockheed Martin, RTX and Northrop Grumman all manufacture advanced weapons systems that depend on rare earth magnets and critical minerals.

While these companies source components through complex supplier networks, a more resilient supply chain could reduce long-term procurement risks tied to geopolitical disruptions.

A Bigger Bet On Supply Chain SecurityThe financing package also signals that the Trump administration is expanding its critical minerals strategy beyond traditional grants and loans. Rather than simply funding production, the government is now taking on multiple roles—as investor, financier and customer.

The structure includes a $750 million government investment, support for a $500 million revolving credit facility and a commitment to purchase at least $300 million of rare earth products over five years.

That combination provides both capital and demand visibility for strategic projects, potentially creating a blueprint for future critical mineral investments.

The Stocks To WatchWhile USA Rare Earth is the immediate beneficiary, investors may also keep an eye on other companies exposed to the domestic rare earth supply chain.

MP Materials Corp. (NYSE:MP) remains the largest U.S. rare earth producer and has previously received Pentagon backing as Washington sought to expand domestic processing capacity.

Meanwhile, companies involved in downstream processing, magnet manufacturing, and defense production could continue to benefit if federal support for critical mineral projects accelerates.

For investors, Monday’s announcement sends a broader message: the race to secure rare earth supplies is no longer just about electric vehicles or clean energy. It’s increasingly becoming a defense strategy—and Washington appears willing to spend billions to make it happen.

Read Next

Image via Shutterstock

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Allstate Corp decreased its holdings in Northrop Grumman Corporation (NYSE:NOC – Free Report) by 12.4% in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 12,638 shares of the aerospace company’s stock after selling 1,796 shares during the quarter. Allstate Corp’s holdings in Northrop Grumman were worth $6,437,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Northrop Grumman in the second quarter worth about $6,001,616,000. Capital World Investors raised its position in shares of Northrop Grumman by 39.4% in the 4th quarter. Capital World Investors now owns 3,434,041 shares of the aerospace company’s stock valued at $1,958,151,000 after purchasing an additional 970,029 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in Northrop Grumman in the 2nd quarter worth approximately $376,135,000. J. Stern & Co. LLP boosted its stake in Northrop Grumman by 56,920.9% in the 4th quarter. J. Stern & Co. LLP now owns 421,955 shares of the aerospace company’s stock worth $240,603,000 after purchasing an additional 421,215 shares in the last quarter. Finally, Deutsche Bank AG purchased a new stake in Northrop Grumman during the 2nd quarter worth approximately $194,058,000. 83.40% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades A number of research analysts have issued reports on the stock. Susquehanna cut their price target on shares of Northrop Grumman from $785.00 to $655.00 and set a “positive” rating on the stock in a research note on Wednesday, July 22nd. TD Cowen lifted their price objective on shares of Northrop Grumman from $550.00 to $590.00 and gave the stock a “hold” rating in a research note on Wednesday, August 19th. Morgan Stanley set a $745.00 price objective on shares of Northrop Grumman in a report on Wednesday, July 15th. JPMorgan Chase & Co. cut their target price on Northrop Grumman from $635.00 to $600.00 and set a “neutral” rating on the stock in a research report on Thursday, July 23rd. Finally, Sanford C. Bernstein restated a “market perform” rating and issued a $653.00 target price on shares of Northrop Grumman in a research note on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $661.30.

Get Our Latest Report on Northrop Grumman Northrop Grumman Trading Up 0.2% NYSE NOC opened at $552.29 on Monday. Northrop Grumman Corporation has a 1 year low of $479.02 and a 1 year high of $774.00. The company has a debt-to-equity ratio of 0.81, a current ratio of 1.17 and a quick ratio of 1.06. The company has a market capitalization of $78.44 billion, a PE ratio of 17.54, a P/E/G ratio of 3.57 and a beta of -0.11. The company has a fifty day moving average of $541.45 and a 200 day moving average of $609.53.

Northrop Grumman (NYSE:NOC – Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The aerospace company reported $7.68 earnings per share for the quarter, topping the consensus estimate of $6.82 by $0.86. The company had revenue of $10.88 billion for the quarter, compared to the consensus estimate of $10.80 billion. Northrop Grumman had a return on equity of 24.25% and a net margin of 10.48%.The firm’s revenue for the quarter was up 5.1% compared to the same quarter last year. During the same period last year, the firm earned $8.15 EPS. Northrop Grumman has set its FY 2026 guidance at 28.600-29.100 EPS. Research analysts forecast that Northrop Grumman Corporation will post 28.97 earnings per share for the current year.

Northrop Grumman Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Monday, August 31st will be issued a dividend of $2.47 per share. This represents a $9.88 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Monday, August 31st. Northrop Grumman’s dividend payout ratio (DPR) is 31.39%.

Insider Buying and Selling In related news, Director Mark A. Welsh III sold 95 shares of Northrop Grumman stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $547.53, for a total transaction of $52,015.35. Following the completion of the transaction, the director directly owned 4,393 shares in the company, valued at approximately $2,405,299.29. This trade represents a 2.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.21% of the stock is currently owned by company insiders.

Northrop Grumman Company Profile (Free Report)

Northrop Grumman Corporation (NYSE: NOC) is a leading U.S.-based aerospace and defense company that designs, builds and sustains advanced systems, products and technologies for government and commercial customers. Formed through the combination of Northrop and Grumman businesses in the 1990s, the company’s portfolio spans manned and unmanned aircraft, space systems, missile defense, radar and sensor systems, and integrated command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) solutions.

The company’s work includes airframe and platform manufacturing, space hardware and satellite systems, advanced mission systems and cybersecurity services, as well as logistics, sustainment and modernization programs.

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A month has gone by since the last earnings report for Northrop Grumman (NOC - Free Report) . Shares have added about 11% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Northrop Grumman due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

Northrop Grumman Sees Growth Across Key Defense Programs

Northrop Grumman Corporation reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.

NOC’s Total SalesNOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.

Northrop Grumman’s Backlog Count
The company’s total backlog was $95.68 billion at the end of the second quarter compared with $95.61 billion at the end of first-quarter 2026.

NOC’s Segmental DetailsAeronautics Systems: This segment’s sales of $3.52 billion rose 13% year over year, driven by higher sales from B-21 and other restricted programs, as well as increased volume on the E-130J TACAMO program.

The unit’s operating income totaled $362 million compared with $321 million in the second quarter of 2025. Its operating profit margin remained the same at 10.3%.

Mission Systems: Sales in this segment increased 2.9% to $3.25 billion. This was driven by ramp-up on restricted airborne radar programs and higher volume on marine systems programs.

The unit’s operating income increased 13.6% to $501 million. The operating margin expanded 140 basis points (bps) to 15.4%.

Defense Systems: This segment’s sales rose 5.1% year over year to $2.09 billion. This improvement was driven by the continued ramp-up of the Sentinel program, as well as the higher volume of tactical solid rocket motor programs and the Integrated Battle Command System portfolio.

The unit’s operating income declined 38.3% year over year to $156 million. The operating margin contracted 520 bps to 9.7%.

Space Systems: Sales in this segment rose 4% to $2.75 billion. This improvement was driven by higher Commercial Resupply Service (CRS) missions as well as higher volume on the Glide Phase Interceptor (GPI) and Ground-based Midcourse Defense Weapon System (GMD WS) programs.

The segment’s operating income decreased 17% year over year to $235 million. The operating margin also contracted 150 bps to 9.5%.

Northrop Grumman’s Operational UpdateTotal operating income during the quarter totaled $1.10 billion, reflecting a significant decrease from $1.43 billion in the prior-year quarter.

NOC’s Financial ConditionNorthrop Grumman’s cash and cash equivalents as of June 30, 2026, totaled $2.31 billion, down from $4.40 billion as of Dec. 31, 2025.

Long-term debt (net of the current portion) amounted to $14.43 billion compared with $15.16 billion as of Dec. 31, 2025.

Net cash outflow from operating activities totaled $376 million during the first six months of 2026 compared with $697 million a year ago.

Northrop Grumman’s 2026 GuidanceThe company expects its revenues to be in the range of $43.75-$44.25 billion compared with its previous guidance of $43.50-$44.00 billion. The Zacks Consensus Estimate for sales is pegged at $43.96 billion, lower than the midpoint of the company’s guided range.

NOC expects adjusted earnings to be in the band of $28.60-$29.10 per share compared with its previous guidance of $27.40-$27.90 per share. The consensus estimate for earnings is pegged at $28.19 per share, above the company’s guided range.

Northrop Grumman projects to generate adjusted free cash flow in the band of $3.10-$3.50 billion.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

VGM ScoresCurrently, Northrop Grumman has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Northrop Grumman has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerNorthrop Grumman belongs to the Zacks Aerospace - Defense industry. Another stock from the same industry, GE Aerospace (GE - Free Report) , has gained 4.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

GE reported revenues of $12.63 billion in the last reported quarter, representing a year-over-year change of +24.5%. EPS of $2.02 for the same period compares with $1.66 a year ago.

For the current quarter, GE is expected to post earnings of $1.99 per share, indicating a change of +19.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.7% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for GE. Also, the stock has a VGM Score of D.

Key Takeaways Northrop Grumman is strengthening military training with virtual, live and immersive solutions.NOC's on-demand LVC framework supports training for fifth-generation F-35 and fourth-generation F-16 jets.NOC's secure cross-domain expertise supports connected training across multiple military services. Northrop Grumman Corporation (NOC - Free Report) is strengthening its position in the growing military training and simulation market with advanced virtual, live and immersive training solutions. As military forces worldwide prepare for increasingly complex threats, demand for realistic, technology-driven training systems is rising. Northrop Grumman’s capabilities help warfighters improve mission readiness while providing cost-effective solutions to prepare for challenging operational environments.

A key area of focus is the company’s Live, Virtual and Constructive (LVC) training capabilities, which combine live exercises with virtual and computer-generated environments. Northrop Grumman also offers its Combat Electromagnetic Environment Simulator, which provides warfighters with realistic training against complex electromagnetic threats. These solutions enable military customers to conduct sophisticated training without relying entirely on costly live exercises, supporting more efficient and flexible mission preparation.

Notably, Northrop Grumman’s on-demand LVC training framework is integrated into training for both fifth-generation F-35 and fourth-generation F-16 fighter aircraft. The company also has experience integrating platforms into secure cross-domain environments spanning multiple military services. This expertise allows Northrop Grumman to support increasingly connected training environments and strengthens its competitive position as defense forces adopt advanced simulation and mission-readiness technologies.

As global defense spending increases and militaries focus on preparing for more advanced threats, demand for military training and simulation solutions is expected to remain strong. Northrop Grumman’s LVC capabilities, immersive training technologies and experience with secure, cross-domain environments position it well to benefit from the long-term expansion of the military training market.

Other Defense Companies Benefiting From Training DemandOther defense companies that are likely to benefit from the expanding military training and simulation market are discussed below:

Lockheed Martin Corporation (LMT - Free Report) : Its Close Combat Tactical Trainer (CCTT) is the U.S. Army’s first and largest distributed interactive simulation system. The platform enables military units to train and validate tactics, doctrine, weapons systems, mission planning and mission rehearsals in a simulated environment.

RTX Corporation (RTX - Free Report) : Its high-fidelity simulation and training solutions support military readiness by combining advanced avionics expertise with training technologies. Its integrated simulators can blend real and virtual environments, helping military personnel prepare for complex missions in a cost-effective manner.

The Zacks Rundown for NOCShares of NOC have surged 8.9% in the past month compared with the industry’s 9.7% growth.

Image Source: Zacks Investment Research

The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.77X compared with its industry’s average of 2.68X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NOC’s 2026 and 2027 earnings has moved north over the past 60 days.

Image Source: Zacks Investment Research

Argyle Capital Partners LLC bought a new position in Northrop Grumman Corporation (NYSE:NOC – Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 1,283 shares of the aerospace company’s stock, valued at approximately $654,000.

Other institutional investors also recently bought and sold shares of the company. Kestra Investment Management LLC raised its position in Northrop Grumman by 4.4% in the fourth quarter. Kestra Investment Management LLC now owns 353 shares of the aerospace company’s stock valued at $201,000 after purchasing an additional 15 shares during the period. Evolution Wealth Management Inc. grew its holdings in Northrop Grumman by 6.8% during the 4th quarter. Evolution Wealth Management Inc. now owns 235 shares of the aerospace company’s stock worth $134,000 after acquiring an additional 15 shares in the last quarter. Golden State Equity Partners raised its stake in Northrop Grumman by 1.2% during the fourth quarter. Golden State Equity Partners now owns 1,337 shares of the aerospace company’s stock valued at $762,000 after buying an additional 16 shares in the last quarter. Diversified Portfolios Inc. raised its position in shares of Northrop Grumman by 0.9% during the 4th quarter. Diversified Portfolios Inc. now owns 1,789 shares of the aerospace company’s stock valued at $1,020,000 after acquiring an additional 16 shares in the last quarter. Finally, South Plains Financial Inc. raised its stake in Northrop Grumman by 1.8% during the fourth quarter. South Plains Financial Inc. now owns 896 shares of the aerospace company’s stock worth $511,000 after acquiring an additional 16 shares during the period. 83.40% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Northrop Grumman In related news, Director Mark A. Welsh III sold 95 shares of the company’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $547.53, for a total transaction of $52,015.35. Following the completion of the transaction, the director directly owned 4,393 shares in the company, valued at $2,405,299.29. This represents a 2.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.21% of the company’s stock.

Northrop Grumman Stock Performance NOC opened at $570.59 on Tuesday. Northrop Grumman Corporation has a 52-week low of $479.02 and a 52-week high of $774.00. The company has a market cap of $81.04 billion, a PE ratio of 18.13, a price-to-earnings-growth ratio of 3.79 and a beta of -0.11. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.06 and a current ratio of 1.17. The stock has a 50-day moving average of $539.49 and a 200-day moving average of $612.84. Northrop Grumman (NYSE:NOC – Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The aerospace company reported $7.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.82 by $0.86. Northrop Grumman had a net margin of 10.48% and a return on equity of 24.25%. The business had revenue of $10.88 billion during the quarter, compared to the consensus estimate of $10.80 billion. During the same period in the prior year, the firm earned $8.15 EPS. Northrop Grumman’s quarterly revenue was up 5.1% compared to the same quarter last year. Northrop Grumman has set its FY 2026 guidance at 28.600-29.100 EPS. As a group, equities research analysts forecast that Northrop Grumman Corporation will post 28.97 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades A number of equities research analysts have issued reports on the company. Susquehanna cut their target price on Northrop Grumman from $785.00 to $655.00 and set a “positive” rating on the stock in a research note on Wednesday, July 22nd. TD Cowen dropped their price objective on Northrop Grumman from $580.00 to $550.00 and set a “hold” rating on the stock in a research note on Wednesday, July 22nd. Wells Fargo & Company restated an “overweight” rating and issued a $620.00 price target on shares of Northrop Grumman in a research report on Wednesday, July 8th. The Goldman Sachs Group cut their price objective on Northrop Grumman from $603.00 to $533.00 and set a “neutral” rating on the stock in a report on Tuesday, July 14th. Finally, Robert W. Baird set a $500.00 price objective on Northrop Grumman in a research note on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, Northrop Grumman presently has a consensus rating of “Moderate Buy” and a consensus target price of $659.30.

Read Our Latest Analysis on NOC

(Free Report)

Northrop Grumman Corporation (NYSE: NOC) is a leading U.S.-based aerospace and defense company that designs, builds and sustains advanced systems, products and technologies for government and commercial customers. Formed through the combination of Northrop and Grumman businesses in the 1990s, the company’s portfolio spans manned and unmanned aircraft, space systems, missile defense, radar and sensor systems, and integrated command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) solutions.

The company’s work includes airframe and platform manufacturing, space hardware and satellite systems, advanced mission systems and cybersecurity services, as well as logistics, sustainment and modernization programs.

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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

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How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

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You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Northrop Grumman (NOC - Free Report) Originally formed in 1939 as Northrop Aircraft Incorporated and reincorporated in 1985 as Northrop Corporation in Delaware, Northrop was a principal developer of flying wing technology. In 1994, the company acquired Grumman Corporation (Grumman), after which the company was renamed Northrop Grumman Corporation. Currently, this global security company supplies a broad array of products like space systems, military aircraft, missile defense, advanced weapons and long-range fire capabilities, mission systems, networking and communications, strategic deterrence systems, and breakthrough technologies, such as advanced computing, microelectronics and cyber. As of Dec 31, 2025, the company operates through the following reportable segments:

NOC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 19.93; value investors should take notice.

For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.85 to $28.83 per share. NOC boasts an average earnings surprise of +8.7%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, NOC should be on investors' short list.

Posted by Defense World Staff on Aug 11th, 2026

Northrop Grumman (NYSE:NOC – Get Free Report) and XTI Aerospace (NASDAQ:XTIA – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability This table compares Northrop Grumman and XTI Aerospace’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Northrop Grumman 10.48% 24.25% 8.15% XTI Aerospace -171.13% -2,044.78% -105.02% Volatility & Risk Northrop Grumman has a beta of -0.11, indicating that its stock price is 111% less volatile than the S&P 500. Comparatively, XTI Aerospace has a beta of 4.79, indicating that its stock price is 379% more volatile than the S&P 500.

Institutional and Insider Ownership 83.4% of Northrop Grumman shares are held by institutional investors. Comparatively, 11.7% of XTI Aerospace shares are held by institutional investors. 0.2% of Northrop Grumman shares are held by insiders. Comparatively, 7.4% of XTI Aerospace shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings This table compares Northrop Grumman and XTI Aerospace”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Northrop Grumman $41.95 billion 1.95 $4.18 billion $31.48 18.33 XTI Aerospace $22.49 million 2.79 -$68.76 million ($5.20) -0.31 Northrop Grumman has higher revenue and earnings than XTI Aerospace. XTI Aerospace is trading at a lower price-to-earnings ratio than Northrop Grumman, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings This is a summary of recent recommendations and price targets for Northrop Grumman and XTI Aerospace, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Northrop Grumman 0 8 11 1 2.65 XTI Aerospace 1 0 0 1 2.50 Northrop Grumman currently has a consensus price target of $655.30, indicating a potential upside of 13.55%. Given Northrop Grumman’s stronger consensus rating and higher possible upside, equities analysts clearly believe Northrop Grumman is more favorable than XTI Aerospace.

Summary Northrop Grumman beats XTI Aerospace on 11 of the 14 factors compared between the two stocks.

About Northrop Grumman (Get Free Report)

Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. The company’s Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems. Its Defense Systems segment designs, develops, integrates, and produces tactical weapons and missile defense solutions, and provides sustainment, modernization, and training services for manned and unmanned aircraft and electronics systems. It also offers integrated, all-domain command, and control battle management systems, precision strike weapons; high speed air-breathing and hypersonic systems; high-performance gun systems, ammunition, precision munitions and advanced fuzes; aircraft and mission systems logistics support, sustainment, operations and modernization; and warfighter training services. The company’s Mission Systems segment offers command, control, communications and computers, intelligence, surveillance, and reconnaissance systems; radar, electro-optical/infrared and acoustic sensors; electronic warfare systems; advanced communications and network systems; cyber solutions; intelligence processing systems; navigation; and maritime power, propulsion, and payload launch systems. Its Space Systems segment offers satellites, spacecraft systems, subsystems, sensors, and payloads; ground systems; missile defense systems and interceptors; launch vehicles and related propulsion systems; and strategic missiles. Northrop Grumman Corporation was founded in 1939 and is based in Falls Church, Virginia.

About XTI Aerospace (Get Free Report)

XTI Aerospace, Inc. engages in the provision of aircraft manufacturing. It primarily focuses on the light and mid-size business aircraft market. The company was founded in April 1999 and is headquartered in Englewood, CO.

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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

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Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

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Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Northrop Grumman (NOC - Free Report) Originally formed in 1939 as Northrop Aircraft Incorporated and reincorporated in 1985 as Northrop Corporation in Delaware, Northrop was a principal developer of flying wing technology. In 1994, the company acquired Grumman Corporation (Grumman), after which the company was renamed Northrop Grumman Corporation. Currently, this global security company supplies a broad array of products like space systems, military aircraft, missile defense, advanced weapons and long-range fire capabilities, mission systems, networking and communications, strategic deterrence systems, and breakthrough technologies, such as advanced computing, microelectronics and cyber. As of Dec 31, 2025, the company operates through the following reportable segments:

NOC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Aerospace stock. NOC has a Momentum Style Score of A, and shares are up 2.3% over the past four weeks.

Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.85 to $28.83 per share. NOC also boasts an average earnings surprise of +8.7%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, NOC should be on investors' short list.

Multi-year framework agreements with the U.S. Department of War and Lockheed Martin deliver speed, scale and certainty for the United States and allies August 03, 2026 08:08 ET  | Source: Northrop Grumman Corporation

FALLS CHURCH, Va., Aug. 03, 2026 (GLOBE NEWSWIRE) -- Northrop Grumman (NYSE: NOC) has signed two multi-year framework agreements totaling over $3 billion to further power the Arsenal of Freedom. Working alongside the U.S. Department of War and Lockheed Martin, the company is increasing production and accelerating delivery of critical munitions technologies and reinforcing the nation’s integrated air and missile defense.

Accelerating PAC-3® MSE Solid Rocket Motor: Northrop Grumman will accelerate production of the Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE), to meet the increasing global demand. Under the $2 billion framework agreement, the company will supply essential components, including solid rocket motors and ignition safety devices, supporting the nation’s integrated air and missile defense.Quadrupling Terminal High Altitude Area Defense (THAAD) Component Production: The $1 billion framework agreement will enable Northrop Grumman to significantly increase monthly deliveries of THAAD components over seven years. Northrop Grumman is scaling design and production capabilities to deliver, in record time, new rocket motors that travel farther and faster. As a result of investments made since 2021, the company is doubling the capacity to deliver solid rocket motors at its Utah facilities, nearly tripling the capacity at the Allegany Ballistics Lab in West Virginia and increasing solid rocket motor capacity by 25% at its Elkton, Maryland facility. 

Expert: 

Ben Davies, corporate vice president Northrop Grumman: “Our long-term investments in breakthrough manufacturing technologies and resilient supply chains let us pivot from steady production to a production surge in record time. As one of America’s leading producers of solid rocket motors, we’re supporting the administration’s push to accelerate munitions output. It’s a mission-critical leap forward that ensures America’s defense edge stays sharper, faster, and farther ahead of global threats.”

Additional Context: 

Over the course of the seven-year framework agreement, Northrop Grumman will significantly increase PAC-3 MSE SRM production rates at the Allegany Ballistics Laboratory (ABL) facility in Rocket Center, West Virginia. Since 2021, the company has doubled its production capacity for tactical solid rocket motors at ABL and plans to triple production capabilities by 2027. This investment supports the U.S. Army’s growth in annual PAC-3 MSE missile production from roughly 600 units today to thousands in the near term for U.S. forces and allied partners. This exceptional production surge will provide speed, volume and precision required for integrated air and missile defense as global demand for the PAC-3 MSE system reaches unprecedented levels.

Since 2002, Northrop Grumman has supplied THAAD with critical expertise for interceptor shell cores, aft bulkheads and heat shield assemblies, leveraging proprietary bonding technology to survive the highest-temperature kinetic missions. The company’s San Diego plant has a 50-year legacy of high-volume, high-rate production of structural components across air, land and space domains.

Northrop Grumman’s propulsion systems and munitions components – ranging from fixed ammunition to warheads and fuzes – serve every branch of the U.S. military with ready-now scalability and consistent performance. Since 2019, Northrop Grumman has invested over $2 billion in munitions related technologies and facilities, including over $1 billion for solid rocket motor production. Northrop Grumman regularly invests in its Solid Motor Annual Rocket Technology Demonstrator program, which is an outcome-driven effort to insert industry-informed advancements into the company’s own solid rocket motor design, development production and testing. With more than 70 years of propulsion expertise and delivery of over 1.3 million solid rocket motors to date, Northrop Grumman remains a proven partner advancing national security through innovation and production excellence.

With nearly 100,000 employees and over 30 million square feet of manufacturing space – more than 500 football fields – we have the capacity, scale, and agility to drive innovation at unprecedented speeds. Our manufacturing approaches do more than just produce; they accelerate and enhance the entire process from design and development to production and testing. We’ve invested in U.S. infrastructure, R&D, our workforce, and our supply chain to deliver today and tomorrow’s national security needs.

Northrop Grumman is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world, and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers’ toughest problems, our employees define possible every day.  

Contact: Northrop Grumman News Bureau
[email protected]

Key Takeaways GE Aerospace is the better pick, backed by stronger sales and profit growth prospects.Commercial engine deliveries rose 26%, while segment revenues jumped 27% year over year.Northrop's $104.7B backlog supports growth, but high debt and supply-chain issues pose risks. GE Aerospace (GE - Free Report) and Northrop Grumman Corporation (NOC - Free Report) are two familiar names operating in the aerospace and defense industry. As rivals, both companies are engaged in producing highly engineered aircraft components for commercial and military aircraft in the United States and internationally.

Both companies have been enjoying significant growth opportunities in the aerospace and defense space on account of the improving air traffic trend and the expansionary U.S. budgetary policy over the past couple of years. Let’s take a closer look at their fundamentals, growth prospects and challenges.

The Case for GE AerospaceGE Aerospace is benefiting from the higher utilization of engine platforms, driven by strong momentum and growth across commercial and defense aerospace sectors. Solid demand for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is driving the performance of the Commercial Engines & Services business.

In the first half of 2026, the company secured several major engine orders and service agreements. GE clinched orders from United Airlines and Delta Air Lines to deliver GEnx engines, while it received orders for LEAP engines from American Airlines and Copa Airlines. Copa Airlines selected up to 120 LEAP-1B engines to power its expanding Boeing 737 MAX fleet. It also entered into a long-term materials agreement to support Ryanair’s fleet of about 2,000 CFM56 and LEAP engines.

The company is also making progress under its FLIGHT DECK lean model, including supplier improvements that contributed to Commercial Engines & Services business’ revenues. In the second quarter of 2026, the segment’s engine deliveries increased 26% from the prior-year quarter, indicating better throughput as the company works through customer demand. The Commercial Engines & Services segment’s revenues and orders jumped 27% and 18%, respectively, on a year-over-year basis in the second quarter.

Solid demand for the company’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector is boosting the Defense & Propulsion Technologies business’ performance. GE received a contract from Turkish Aerospace Industries (“TAI”) to continue integrating its F404 engine into Türkiye's Hurjet jet trainer. It also clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet. In second-quarter 2026, the Defense & Propulsion Technologies segment’s revenues increased 16% year over year and orders grew 12%.

The company’s shareholder-friendly policies also add to its appeal. In the first six months of 2026, it paid dividends of $873 million, up 26.9% year over year, to its shareholders. It also raised its dividend by 30.6% to 36 cents per share in February 2026. In the same period, the company repurchased shares for $4.2 billion.

The Case for Northrop GrummanNorthrop is expected to continue generating steady organic growth in 2026 and beyond as it continues to win new awards and thereby convert the robust backlog, which was $104.7 billion as of June 30, 2026, into solid sales growth. Such a robust backlog count is backed by increasing demand for the company’s defense products and rising global defense budget support, which in turn should boost Northrop’s revenue-generating prospects substantially.

The current U.S. government’s inclination toward strengthening the nation’s defense system should act as a growth catalyst for defense contractors like Northrop. Considering that sales from Northrop to the U.S. government comprised 84% of its total sales in 2025, solid funding provisions from the administration are expected to lead to a solid inflow of contracts for Northrop.

Foreign military sales also serve as a key growth catalyst for Northrop. The company’s international sales totaled $1.54 billion in the second quarter of 2026, comprising 14% of total sales. Region-wise, Northrop is witnessing significant opportunities for its Integrated Battle Command System (IBCS) and other weapons in Europe. Moreover, the long-standing conflicts in different parts of the Middle East have also been fueling demand for modern defense products.

NOC also remains committed to rewarding its shareholders through dividends and buybacks. In the first six months of 2026, it paid dividends of $684 million, up 7.9% year over year, to its shareholders. It also raised its dividend by 6.9% to $2.47 per share in May 2026. In the same period, the company repurchased shares for $68 million.

Despite the positives, NOC’s highly leveraged balance sheet remains concerning. Exiting the second quarter, Northrop’s long-term debt was high at $14.4 billion. Considering the high debt level, its cash and cash equivalents of $2.3 billion do not look impressive.

Price Performance
Image Source: Zacks Investment Research

In the past six months, GE Aerospace shares have risen 15%, while Northrop stock has lost 21.9%.

The Zacks Consensus Estimate for GE & NOC
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for GE’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 19.7% and 23.4%, respectively. EPS estimates for both 2026 and 2027 have increased over the past 60 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Northrop’s 2026 sales and EPS implies year-over-year growth of 4.9% and 9.5%, respectively. EPS estimates for both 2026 and 2027 have been raised over the past 60 days.

Valuation of GE & Northrop
Image Source: Zacks Investment Research

Northrop is trading at a forward 12-month price-to-earnings ratio of 17.99X, close to its median of 18.74X over the last three years. GE’s forward earnings multiple sits at 41.88X, higher than its median of 37.01X over the same time frame.

Final TakeGE Aerospace’s strong momentum in the commercial and defense aerospace markets, driven by solid build rates, wide-body aircraft demand and a robust defense budget, bodes well for growth. Given the strength across most of its served markets, GE has built a sound liquidity position that supports its shareholder-friendly policies.

In contrast, Northrop’s strength in the defense aerospace market, along with its robust pipeline of projects, favors well for its growth. Its shareholder-friendly policies add to its appeal. However, this has been marred by the supply-chain challenges and high debt level, which might affect its performance.

Despite its steeper valuation, GE holds robust prospects due to strong estimates, stock price appreciation and better prospects for sales and profit growth. Given these factors, GE seems a better pick for investors than Northrop currently. While GE carries a Zacks Rank #2 (Buy), Northrop currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Stock to Watch: Northrop Grumman (NOC - Free Report) Originally formed in 1939 as Northrop Aircraft Incorporated and reincorporated in 1985 as Northrop Corporation in Delaware, Northrop was a principal developer of flying wing technology. In 1994, the company acquired Grumman Corporation (Grumman), after which the company was renamed Northrop Grumman Corporation. Currently, this global security company supplies a broad array of products like space systems, military aircraft, missile defense, advanced weapons and long-range fire capabilities, mission systems, networking and communications, strategic deterrence systems, and breakthrough technologies, such as advanced computing, microelectronics and cyber. As of Dec 31, 2025, the company operates through the following reportable segments:

NOC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18.99; value investors should take notice.

Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.85 to $28.83 per share. NOC boasts an average earnings surprise of +8.7%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, NOC should be on investors' short list.

Key Takeaways Better-than-expected Q2 earnings, policy support and geopolitical tensions lift defense outlook.LMT, RTX and NOC delivered Q2 earnings beats, highlighting resilient defense demandETFs like ITA, XAR and PPA offer diversified exposure to the defense sector's strong outlook Geopolitical tensions have been a significant headwind for financial markets in 2026, with the conflict in the Middle East fueling uncertainty and volatility. Yet, the same backdrop has created a favorable environment for the defense sector, supported by expectations of higher military spending.

With military exchanges between Washington and Tehran becoming more intense, the risk of a broader regional conflict has increased. The concerns of a wider regional war have been reinforced after President Trump stated that a decision on launching a "massive attack" on Iran is imminent, as the Middle East conflict spread to the Red Sea, as quoted on CNBC.

The defense sector remains well-positioned in the current environment, as it has historically outperformed during periods of heightened geopolitical tensions and increased military activity. At the same time, President Trump has urged defense contractors to expand manufacturing capacity and increase weapons production.

The industry's outlook has been further strengthened by policy support. The U.S. House of Representatives advanced the fiscal 2027 National Defense Authorization Act (NDAA), authorizing a record $1.15 trillion in military spending, as per Reuters.

Adding to the positive backdrop, several defense companies delivered robust second-quarter 2026 earnings.

Earnings in FocusBelow, we have discussed in brief the second-quarter results of a few renowned U.S. Aerospace – Defense industry players.

Lockheed MartinLockheed Martin (LMT - Free Report) reported second-quarter 2026 adjusted earnings of $7.94 per share, which beat the Zacks Consensus Estimate of $7.22 by 10%. The bottom line increased 8.9% from the year-ago quarter's reported figure of $7.29.

Net sales were $20.06 billion, which beat the Zacks Consensus Estimate of $19.34 billion by 3.7%. The top line inched up 10.5% from $18.16 billion reported in the year-ago quarter. The year-over-year improvement was driven by higher sales growth registered by LMT’s business segments.

LMT’s backlog, as of June 28, 2026, was $230.42 billion compared with $193.62 billion as of Dec. 31, 2025. The Aeronautics segment accounted for $54.36 billion of the total backlog amount, while the Missiles and Fire Control segment contributed $87.88 billion. The Rotary and Mission Systems segment contributed $48.45 billion, while the Space unit accounted for $39.72 billion.

The company has a Momentum Score of A. LMT came up with second-quarter 2026 earnings on July 23, before market open and gained around 10.54% on the same day.

RTX CorporationRTX Corporation’s (RTX - Free Report) second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.

Revenues rose 14.5% year over year to $24.71 billion and beat the consensus mark of $22.83 billion by 8.2%. Growth was supported by higher commercial aftermarket and defense demand. Organic sales advanced 16% in the quarter.

Backlog climbed 22% to $289 billion. The company secured $43 billion of new awards during the quarter, including nearly $20 billion at Raytheon. The total backlog comprised $170 billion of commercial orders and $119 billion of defense orders, providing strong visibility into future production requirements.

RTX has a Zacks Rank #2 (Buy) with a VGM Score of C. The company released second-quarter 2026 earnings on July 23, before market open and gained around 7.3% on the same day.

Northrop GrummanNorthrop Grumman (NOC - Free Report) reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.

NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter. Total operating income during the quarter was $1.10 billion, reflecting a significant decrease from $1.43 billion in the prior-year quarter.

The company’s total backlog was $95.68 billion at the end of the second quarter compared with $95.61 billion at the end of first-quarter 2026.

The company has a Momentum Score of A. NOC came up with second-quarter 2026 earnings on July 21, before market open and has since gained around 10%.

Defense ETFs to ConsiderFor investors looking to bet on second-quarter results as well as the continued surge in military spending, the following Defense ETFs provide a great opportunity.

Investors can consider iShares U.S. Aerospace & Defense ETF (ITA - Free Report) , Invesco Aerospace & Defense ETF (PPA - Free Report) , SPDR S&P Aerospace & Defense ETF (XAR - Free Report) , Global X Defense Tech ETF (SHLD - Free Report) , First Trust Indxx Aerospace & Defense ETF (MISL - Free Report) and U.S. Global Technology and Aerospace & Defense ETF (WAR - Free Report) .

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SummaryNorthrop Grumman delivered strong Q2 2026 results, with 5% sales growth, a record $104.7B backlog, and raised 2026 guidance despite headline margin pressure.NOC's margin compression stemmed from isolated program issues (SiAW, GEM 63XL), while core segments operated near historical margin levels and cash flow surged.2026 guidance now implies $44B in sales, $28.60–$29.10 EPS, and $3.1–$3.5B in free cash flow, with B-21, Sentinel, and national security space as key growth drivers.I maintain a Strong Buy rating with a $656 base case price target (25% upside), citing stable growth, a robust backlog, and future shareholder return potential post-CapEx cycle.Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More » Getty Images

Northrop Grumman Corporation (NOC) reported a stronger second quarter than the headline year-on-year comparisons suggest. Sales increased modestly, backlog rose to record levels, and adjusted free cash flow surged, with margins and earnings per share being the only metrics with

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Key Takeaways NOC signed an MOU with Airbus to expand NATO ISR capabilities using MQ-4C Triton systems.The pact covers communications, data processing, intelligence analysis, dissemination and command systems.NOC's NATO experience and partnerships support faster deployment and allied interoperability. Northrop Grumman (NOC - Free Report) continues to strengthen its position in the Intelligence, Surveillance and Reconnaissance (ISR) market through its advanced unmanned aircraft systems, communications technologies and mission-critical defense solutions. The company develops integrated ISR capabilities that help military customers improve situational awareness, enhance decision-making and support operations across multiple domains.

A key example is Northrop Grumman's recently signed Memorandum of Understanding (MOU) with Airbus Defence and Space to support the expansion of the NATO Intelligence, Surveillance and Reconnaissance Force with MQ-4C Triton uncrewed aircraft systems. The collaboration will explore a transatlantic solution to deliver advanced ISR capabilities for NATO operations while strengthening defense cooperation across the Alliance.

Per the agreement, Northrop Grumman will work with Airbus and several European defense companies to provide services that include airborne and ground communications, data processing, intelligence analysis and dissemination, as well as command and control capabilities. The partnership also builds on the company's experience supporting NATO's existing RQ-4D Phoenix fleet, helping accelerate the deployment of next-generation ISR capabilities and strengthen interoperability among allied forces.

As defense agencies worldwide continue to invest in advanced ISR capabilities, demand for integrated surveillance, communications and command systems is expected to remain strong. Northrop Grumman's expanding international partnerships, proven MQ-4C Triton platform and expertise in communications, networking and mission systems position it well to benefit from long-term defense modernization programs and growing demand for ISR solutions.

Other Stocks to Keep on the WatchlistOther aerospace and defense companies expanding their ISR capabilities are discussed below:

General Dynamics (GD - Free Report) : Through its General Dynamics Information Technology business, the company provides ISR and C5ISR solutions, including secure communications, systems integration and mission support services for military customers.

L3Harris Technologies (LHX - Free Report) : The company offers advanced ISR solutions, including airborne sensors, intelligence systems and secure communications that help improve surveillance, information sharing and mission effectiveness.

The Zacks Rundown for NOCShares of NOC have lost 0.2% in the past month compared with the industry’s 3.6% decline.

Image Source: Zacks Investment Research

The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.60X compared with its industry’s average of 2.46X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NOC’s 2026 earnings has moved south over the past 60 days.

Image Source: Zacks Investment Research

Net Awards: $20 billion in the second quarter, driving a book-to-bill ratio of 1.84 times.Backlog: Reached a new record high of $105 billion, up 17% year-over-

Northrop Grumman Corporation (NOC) Q2 2026 Earnings Call July 21, 2026 9:30 AM EDT

Company Participants

Adam Barr
Kathy Warden - Chair, CEO & President
John Greene - Corporate VP & CFO

Conference Call Participants

Seth Seifman - JPMorgan Chase & Co, Research Division
Sheila Kahyaoglu - Jefferies LLC, Research Division
Gavin Parsons - UBS Investment Bank, Research Division
Jeremy Jason - Citigroup Inc., Research Division
Scott Deuschle - Deutsche Bank AG, Research Division
David Strauss - Wells Fargo Securities, LLC, Research Division
Matthew Akers - BNP Paribas, Research Division
Justin Lang - Morgan Stanley, Research Division
Scott Mikus - Melius Research LLC
Andre Madrid - BTIG, LLC, Research Division
Peter Arment - Robert W. Baird & Co. Incorporated, Research Division
Gautam Khanna - TD Cowen, Research Division
Myles Walton - Wolfe Research, LLC

Presentation

Operator

Good day, and thank you, ladies and gentlemen, and welcome to Northrop Grumman's Second Quarter 2026 Conference Call. Today's call is being recorded. My name is Josh, and I will be your operator today. [Operator Instructions]

I would now like to turn the call over to your host, Mr. Adam Barr, Head of Investor Relations. Mr. Barr, please proceed.

Adam Barr

Good morning, and welcome to Northrop Grumman's Second Quarter 2026 Conference Call. Before we begin, please note that matters discussed on today's call, including guidance and outlooks for 2026 and beyond, reflect the company's judgment based on information available at the time of this call. They constitute forward-looking statements under the safe harbor provisions of federal securities laws. Forward-looking statements involve risks and uncertainties, including those noted in today's press release and our SEC filings, which may cause actual company results to differ materially.

Today's call will also include non-GAAP financial measures, which are reconciled to our GAAP results in the earnings release. Additionally, we refer to a presentation that has been posted to our Investor Relations

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SpaceX Has Real Value—But These 3 Stocks Have Better Odds Right NowNorthrop Grumman NYSE: NOC raised its 2026 sales and earnings outlook after reporting stronger second-quarter bookings, a record backlog and revenue growth across all four of its business segments, while management also addressed cost pressures on two programs that weighed on segment margins.

Chair, CEO and President Kathy Warden said the company is seeing increased demand tied to U.S. defense priorities, international modernization efforts and production-ready systems in areas including missiles, missile defense, autonomous aircraft and national security space.

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RTX Is Set to Revolutionize Munitions Manufacturing“We are fully aligned with the U.S. government priorities and see significant opportunity and increased demand for our portfolio,” Warden said on the company’s second-quarter 2026 earnings call.

Bookings Push Backlog to Record Level Northrop Grumman reported $20 billion in net awards during the quarter, producing a book-to-bill ratio of 1.84 times. Backlog rose to a record $105 billion, up 17% from a year earlier, according to CFO John Greene.

The Pentagon's AI Pivot Supercharges Defense StocksWarden said the company now expects full-year book-to-bill of at least 1.25 times, citing continued strong bookings and improving government outlays. She said core programs remain well supported in the U.S. base budget request, even as Congress and the administration continue working through fiscal 2027 authorization, appropriations, supplemental defense funding and a reconciliation package focused on military modernization and the defense industrial base.

Northrop Grumman said second-quarter sales increased 5% year over year to $10.9 billion and rose 10% sequentially. Adjusted free cash flow was nearly $1 billion in the quarter, while capital expenditures totaled $302 million as the company continues to expand facilities to support customer demand.

Company Raises 2026 Guidance Management increased full-year sales guidance to a range of $43.75 billion to $44.25 billion, with a midpoint of $44 billion, representing more than 5% organic growth. Northrop Grumman also raised its mark-to-market adjusted earnings per share outlook by $1.20 to a range of $28.60 to $29.10.

Greene said the higher EPS outlook reflects a combination of higher sales, expected strong second-half margins, tax benefits and ongoing efforts to manage operating costs. Second-quarter diluted EPS was $7.68. Greene said EPS benefited from a lower effective tax rate, including the remeasurement of uncertain tax positions after recent developments with the IRS, as well as a gain tied to the sale of an equity investment.

The company reaffirmed adjusted free cash flow guidance of $3.1 billion to $3.5 billion for 2026 and said it still expects $1.85 billion of capital expenditures this year. Greene said CapEx investments are expected to run around 4.5% of sales in 2027 and 2028 as Northrop Grumman supports the B-21 production ramp.

Segment Results Mixed by Program Adjustments Aeronautics Systems delivered the strongest segment performance in the quarter, with sales up 13% on higher volumes for B-21, TACAMO and mature production programs. Operating margin increased to 10.3%, which Greene attributed to strong performance across production and sustainment programs. The company raised its full-year Aeronautics sales estimate to about $14 billion and lifted expected margins to the mid-to-high 9% range.

Defense Systems sales increased 5%, or 7% organically, driven by Sentinel and missile defense programs. Operating margin was 7.5%, reflecting a $68 million unfavorable estimate-at-completion adjustment on the Stand-in Attack Weapon, or SiAW, program. Excluding SiAW, Greene said the rest of the Defense Systems portfolio contributed an operating margin rate of 11% in the quarter.

Warden said higher projected SiAW costs were tied to qualification testing and schedule effects from delays in testing on the AARGM-Extended Range program, which she said is related to the company’s broader tactical missile growth strategy. She said Northrop Grumman has added resources and integration lab capacity to help work through the challenges.

Mission Systems sales rose 3%, supported by marine programs, F-35 sensors and restricted airborne radar programs. The segment’s margin rate improved to 15.4%, driven by strong execution and higher net favorable EAC adjustments. Northrop Grumman raised its full-year Mission Systems margin outlook to approximately 15% while maintaining its sales guidance in the high $12 billion range.

Space Systems sales increased 4%, driven by NASA Commercial Resupply Services and missile defense programs. Operating margin was 8.6%, affected by an unfavorable EAC adjustment on the GEM 63XL program tied to increased estimated material costs and quantities. Warden said the company has progressed on the root cause investigation following a first-quarter launch anomaly and has completed a successful static fire test of a redesigned component. Deliveries of redesigned motors are expected to begin by year-end.

Northrop Grumman lowered its full-year Space margin expectation to the low 10% range but maintained its sales outlook of about $11 billion.

Sentinel, B-21 and Missile Programs Remain Key Growth Drivers Warden highlighted progress on the Sentinel program, including further definitization and authorization that added $7.6 billion to program backlog. She said the company achieved contract incentives during the quarter, completed an acoustic test of the Sentinel missile and has solid rocket motors for the first five flight tests in production. First flight of the integrated missile is expected in 2027.

On the B-21, Warden said Northrop Grumman is working with the Air Force as it analyzes whether to accelerate production into a larger program of record. She said she expects the Air Force to reach a conclusion by year-end.

The company also pointed to opportunities in solid rocket motors. Warden said Northrop Grumman completed qualification activities to become a supplier on PAC-3 and reached a $2 billion framework agreement with the Department of Defense and Lockheed Martin. A PAC-3 solid rocket motor production award is expected later this year.

Warden said Northrop Grumman has 10 multi-year agreements for missile acceleration across its portfolio, representing up to $10 billion of sales opportunity over the next seven years.

International Demand and Space Opportunities Expand Northrop Grumman reiterated its goal of doubling annual international sales to $10 billion by 2031. Warden cited NATO’s commitment involving Triton autonomous aircraft, Kuwait’s State Department authorization for six IBCS systems and Australia’s selection of Northrop Grumman to establish an in-country solid rocket motor manufacturing facility.

In the Middle East, Warden said missile defense remains a priority and noted letters of request from the United Arab Emirates and Qatar for IBCS, along with discussions with other countries in the region. She also said the foreign military sales process has improved, with cases being approved at a faster rate than in prior years.

Management also emphasized national security space as a growing priority. Warden said Northrop Grumman’s national security space backlog exceeds $16 billion and that the business is projected to grow high single digits this year, generating more than $7 billion in sales and accounting for over 15% of company revenue.

The company also discussed its Mission Robotic Vehicle, a commercial robotic spacecraft designed to service satellites in geosynchronous orbit and install life-extension systems. Warden said the first MRV was scheduled to launch later that day, weather permitting, and is expected to become operational in 2027 after reaching orbit and completing testing.

Warden closed the call by saying Northrop Grumman remains confident in improved second-half margin performance and is focused on resolving the SiAW and GEM 63XL program issues while maintaining strong execution across the broader portfolio.

About Northrop Grumman (NYSE:NOC)Northrop Grumman Corporation NYSE: NOC is a leading U.S.-based aerospace and defense company that designs, builds and sustains advanced systems, products and technologies for government and commercial customers. Formed through the combination of Northrop and Grumman businesses in the 1990s, the company's portfolio spans manned and unmanned aircraft, space systems, missile defense, radar and sensor systems, and integrated command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) solutions.

The company's work includes airframe and platform manufacturing, space hardware and satellite systems, advanced mission systems and cybersecurity services, as well as logistics, sustainment and modernization programs.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways Pre-Markets Are Higher Despite Precarious News on Middle EastQ2 Earnings Results Were Strong for GM, MMM, DHI & MoreOil and Bond Yields Creeping Up Ahead of the Bell Tuesday, July 21st, 2026

Pre-market futures have pushed into the green at this hour, although they are off early morning highs. Investor sentiment remains complicated into the second trading day of the week, with headwinds continuing from AI capex concerns and renewed hostilities in and around the Strait of Hormuz.

The Dow is +129 points presently, +0.25%, while the S&P 500 is +32 points, +0.43%. The Nasdaq is the only major index looking like its pushing continually higher in today’s pre-market, +400 points, +1.39%, while the small-cap Russell 2000 is +11, +0.38%. WTI spot oil has creeped up to $84 per barrel (/bbl) this morning, $90 on Brent crude. Bond yields are inching up as well: +4.61% on the 10-year, +4.22% on the 2-year.

Wide Swath of Quarterly Earnings Results Hit the TapeAhead of today’s open, General Motors (GM - Free Report) posted an impressive +14% earnings surprise for its Q2 to $3.57 per share, with revenues $48.03 billion easily surpassing the Zacks consensus by +3.15%, and higher than the $47.12 billion reported a year ago. GM even raised its full-year guidance, though shares are only modestly moving higher at this hour. The stock is up +43% from a year ago. For more on GM’s earnings, click here.

Minnesota-based international conglomerate 3M (MMM - Free Report) also outperformed expectations this morning, with earnings of $2.40 per share surpassing the $2.27 anticipated, for a +5.73% beat. In fact, it’s the biggest earnings beat from the company since the June quarter a year ago. Full-year guidance was also raised. Shares are up +7% on the news so far this morning.

Inflammation and oncology treatment maker Novartis (NVS - Free Report) — developer of Entresto, Cosentyx, Kisqali and Pluvicto, to name but a few — put up a +9.55% earnings beat: $2.41 per share versus $2.20 anticipated. This is Novartis’ first earnings beat since the December 2025 quarter. Shares are up +2.4% in today’s pre-market, +31% over the past year.

Defense giant Northrop Grumman (NOC - Free Report) posted an earnings beat of +12.28%: $7.68 per share versus $6.84 projected. This marks the company’s fifth-straight earnings beat. Revenues of $10.88 billion came in +0.73% ahead of the Zacks consensus, though a record backlog of $105 billion wasn’t enough to impress early traders — shares are down -4.2% ahead of the open. For more on NOC’s earnings, click here.

Major toy manufacturer Hasbro (HAS - Free Report) outperformed Q2 estimates by +9.4%: $1.28 per share versus $1.17 expected, with revenues of $1.14 billion outpacing estimates by +8.93%, nicely up from $980.8 million reported in the year-ago quarter. Shares are up +2.4% on the news — nearly half on the stock’s entire gains over the past year. For more on HAS’ earnings, click here.

“America’s largest homebuilder” D.R. Horton (DHI - Free Report) also outperformed expectations on its fiscal Q3 quarterly results this morning. Earnings of $3.20 per share swept past the $2.99 forecast, for a +7% beat. This is the third earnings beat for the Texas-based homebuilder in its past four quarters. Revenues matched the year-ago tally at $9.23 billion for the quarter, +0.46% higher than anticipated. For more on DHI’s earnings, click here.

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