Northrop Grumman lifted its profit guidance as backlog reached $110bn

Backlog is the number that moved. Northrop Grumman booked $16.4bn of net awards in the third quarter, a book to bill ratio of 1.5, and its backlog rose to $109.6bn from the $105bn record it set in June, according to the earnings release the company filed with the SEC at 6:00 a.m. on October 20.

Sales rose 7 percent to $11.1bn from $10.4bn a year earlier, with Aeronautics Systems up 14 percent and Defense Systems up 12 percent while Mission Systems and Space Systems each grew 2 percent. Net earnings were $1.12bn, or $7.89 a diluted share, against $7.67. The operating margin narrowed to 11.4 percent from 11.9 percent. A tax rate of 13.4 percent, down from 16.9 percent on higher research credits, did part of the work below the operating line.

The awards list was led by $4.6bn of restricted programs. Sentinel added $2.0bn and Virginia class submarines $1.4bn.

Northrop raised its 2026 range for MTM-adjusted EPS, a non-GAAP measure, to $29.35 to $29.75 from $28.60 to $29.10, and lifted segment operating income by $65m at the midpoint. It left full-year sales guidance at $43.75bn to $44.25bn.

The document: Northrop Grumman, Form 8-K exhibit 99, October 20, 2026.