AI Takeaway
Northrop Grumman (NOC) delivered strong Q1 FY2026 results with revenue up 4.4% to $9.88B and net income surging 81.9% to $875M, driven by significant margin expansion, though operating cash flow remained negative at -$1.66B.
Revenue
$9.88B
++4.36% YoY
EPS (Basic)
$6.16
++84.98% YoY
Operating Income
$989M
++72.60% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue grew 4.4% year-over-year to $9.88B in Q1 FY2026, up from $9.47B in the prior-year period, reflecting continued demand for defense programs and government contracts.
Source: 10-Q Income Statement, Q1 FY2026
Operating margin expanded approximately 400 basis points to 10.0% from 6.1% in the prior year, with operating income surging 72.6% to $989M, suggesting significant improvement in program execution or favorable contract mix.
Source: 10-Q Income Statement, Q1 FY2026
Net income rose 81.9% to $875M and diluted EPS jumped 84.9% to $6.14 from $3.32, reflecting both operational improvement and a modestly reduced share count from buyback activity.
Source: 10-Q Income Statement, Q1 FY2026
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Upgrade to unlockNOC generated -$1.66B in operating cash flow in Q1 FY2026, worse than the -$1.57B in the prior-year period. While defense contractors often experience Q1 cash outflows due to working capital timing, sustained negative cash generation could pressure liquidity and capital allocation flexibility.
Source: 10-Q Cash Flow Statement, Q1 FY2026
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Upgrade to unlockReported EPS of $6.14 versus the $6.12 analyst consensus — a +0.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $9.88B | $9.47B | +4.36% |
Operating Income | $989M | $573M | +72.60% |
Net Income | $875M | $481M | +81.91% |
EPS (Basic) | $6.16 | $3.33 | +84.98% |
EPS (Diluted) | $6.14 | $3.32 | +84.94% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $50.01B | $48.47B | +3.18% |
Current Assets | $14.77B | $13.27B | +11.33% |
Total Liabilities | $32.89B | $33.48B | -1.77% |
Current Liabilities | $12.82B | $13.97B | -8.22% |
Stockholders' Equity | $17.11B | $14.98B | +14.22% |
Cash & Equivalents | $2.09B | $1.69B | +24.04% |
Long-Term Debt | $14.41B | $14.17B | +1.72% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-1.66B | $-1.56B | -5.81% |
Investing Cash Flow | $-168M | $-252M | +33.33% |
Financing Cash Flow | $-489M | $-851M | +42.54% |
Share Buybacks | $68M | $480M | -85.83% |
D&A | $372M | $337M | +10.39% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 10.0% | 6.1% | +3.96% |
Net Margin | 8.9% | — | — |
ROE | 5.1% | — | — |
ROA | 1.7% | — | — |
Current Ratio | $1.152 | — | — |
Debt to Equity | $1.922 | — | — |
Other companies in Aerospace & Defense
NOC reported diluted EPS of $6.14 in Q1 FY2026, up 84.9% from $3.32 in the prior year, and net income of $875M, up 81.9%. Whether this beat Wall Street consensus estimates would require comparison to analyst forecasts, which are not included in the filing.
The standout takeaway was dramatic profitability improvement, with operating income up 72.6% to $989M and operating margin expanding to 10.0% from 6.1%. Revenue also grew a solid 4.4% to $9.88B, though operating cash flow remained negative at -$1.66B, a watch item for investors.
Northrop Grumman's revenue grew 4.4% year-over-year to $9.88B in Q1 FY2026, up from $9.47B in the prior-year period, driven by continued execution on U.S. defense programs and government contracts.
NOC's balance sheet shows total assets of $50.0B, stockholders' equity of $17.12B, and long-term debt of $14.41B, with a debt-to-equity ratio of approximately 1.92. The current ratio of 1.15 indicates adequate near-term liquidity, though negative operating cash flow of -$1.66B warrants monitoring.
NOC's operating margin expanded approximately 400 basis points to 10.0% in Q1 FY2026 from 6.1% in the prior year, with operating income surging 72.6% to $989M. The filing text is not available to pinpoint the exact drivers, but this likely reflects improved program execution, favorable contract mix, or resolution of prior-year cost headwinds.