Defense contractor Northrop Grumman announced Tuesday that it is raising its 2026 revenue and profit projections, pointing to continued strong demand for weapons systems as conflicts around the world persist.
President Donald Trump has been pushing defense manufacturers to ramp up production capacity and increase weapons output, as the ongoing wars in Ukraine and the Middle East have depleted U.S. military stockpiles. According to Pentagon data, the United States has used more than 50,000 rockets, missiles, and other rocket-propelled projectiles since the Russia-Ukraine war began in 2022 through the conflict with Iran.
Trump has also put forward a proposed military budget of $1.5 trillion for fiscal year 2027 — a record figure that far surpasses the $901 billion that was approved for 2026.
Northrop’s largest business segment, Aeronautics, saw second-quarter sales jump 13% compared to the same period last year. That growth was fueled by strong results in the B-21 Raider program and other classified programs. The B-21 Raider is a nuclear-capable, long-range strike aircraft. In February, Northrop signed an agreement with the Air Force to expand production of the aircraft by 25%, with the first delivery scheduled for 2027.
The company’s defense systems division posted a 5% revenue increase, driven in part by solid sales tied to its Sentinel program — the ground-based component of the U.S. nuclear triad. However, operating income in that division dropped 38%, as the company is investing heavily in developing its air-to-surface missile, the Stand-in Attack Weapon, and advancing production of the long-range version of the Advanced Anti-Radiation Guided Missile.
Northrop lifted its 2026 revenue forecast by $250 million, now projecting full-year sales between $43.75 billion and $44.25 billion — roughly in line with Wall Street expectations based on data from LSEG. The company also raised its adjusted earnings outlook to a range of $28.60 to $29.10 per share, up from the prior estimate of $27.40 to $27.90 per share.
For the quarter ending June 30, the Falls Church, Virginia-based company reported total sales of $10.88 billion, compared to $10.35 billion during the same quarter a year ago. Quarterly earnings per share came in at $7.68, down from $8.15 a year earlier — though that prior figure included a $1.04 benefit from the sale of Northrop’s training services business.
