Aerospace & Defense
Northrop Grumman’s Q2 FY2026 revenue rose 5.1% to $10.876B, but operating income fell 23.1% to $1.096B as the prior-year training-services divestiture gain did not recur and Defense and Space program profitability weakened, partly offset by a sharply lower tax rate.
Key risk: Operating-margin compression
Q2 FY2026 operating margin declined to 10.1% from 13.8% year over year, while operating income fell 23.1% to $1.096B despite revenue growth. This indicates that higher sales did not translate proportionately into profitability during the quarter.
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