Northrop raised its 2026 sales forecast to $44B and EPS to $28.60-$29.10 after a record backlog quarter. The defense contractor cited strong demand. It also flagged B-21 and Sentinel program risks.
Northrop Grumman raised its 2026 sales and profit forecasts Tuesday after a second quarter that pushed its backlog past $105 billion. Northrop now expects adjusted earnings of $28.60 to $29.10 a share for the full year, up from a prior range of $27.90 to $28.50. Revenue is projected at $43.9 billion to $44.1 billion, compared with an earlier $42.8 billion to $43.3 billion.
Strong demand across Northrop's divisions drove the guidance increase. Aerospace systems revenue rose 12% from a year earlier. The defense systems and mission systems units also posted year-over-year gains. Backlog reached $105.1 billion, a record for the Falls Church, Virginia-based contractor.
Program-level risks accompany the higher outlook. Northrop flagged supply-chain pressure on the B-21 bomber and a slower-than-expected ramp on the Sentinel intercontinental ballistic missile. Both are priority Pentagon contracts. Chief Executive Kathy Warden told analysts Northrop is working with the Air Force to manage Sentinel's schedule and cost pressures.
Northrop's Alpha Score is 36 out of 100. The mixed reading weighs strong booking momentum against execution risk on the B-21 and Sentinel programs. This year, the stock has lagged the broader defense sector. Investors are pricing in the same risks. Northrop reports third-quarter results in October.
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