Northrop Grumman CorporationNorthrop raised 2026 sales guidance and lifted its MTM-adjusted EPS outlook.

The US Army has awarded Northrop Grumman Corporation a $4.8 billion contract for the Common Infrared Countermeasure system, a full-rate production award scheduled to run through September 2035. The full $4.8 billion ceiling does not immediately enter backlog, and Northrop has already delivered more than 750 CIRCM shipsets, with the system accumulating over 75,000 operational flight hours on platforms such as the AH-64 Apache and CH-47 Chinook. The award adds to a rapidly expanding pipeline: Northrop secured $20 billion of net awards in Q2, including $7.6 billion for Sentinel, $4.3 billion for restricted programs, and $1 billion for F-35 work, lifting its backlog to a record $104.7 billion. Northrop raised its 2026 sales guidance to a range of $43.8 billion to $44.3 billion from a prior band of $43.5 billion to $44.0 billion, and lifted its MTM-adjusted EPS outlook to $28.60 to $29.10 from $27.40 to $27.90, while maintaining adjusted free cash flow guidance at $3.1 billion to $3.5 billion. Profitability remains the key risk: Q2 overall operating margin dropped to 10.1% from 13.8% a year ago, Defense Systems margin fell to 7.5% from 12.7% on higher costs tied to the AARGM-ER and SiAW programs, and Space Systems absorbed an unfavorable $91 million estimate-at-completion adjustment on GEM 63XL.
Northrop Grumman CorporationNorthrop raised 2026 sales guidance and lifted its MTM-adjusted EPS outlook.