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Dec 31, 2025
Northrop Grumman Q4 2025 Earnings Report
Northrop Grumman reported solid Q4 results with increased revenue, EPS, and net income driven by strong segment performance and record backlog.
Key Takeaways
Northrop Grumman delivered strong Q4 2025 performance, with revenue up 10% year-over-year, higher operating income, and a record backlog of $95.7 billion.
Revenue grew to $11.7 billion in Q4 2025, up from $10.7 billion in Q4 2024.
Net income reached $1.4 billion, with GAAP EPS of $9.99 and adjusted EPS of $7.23.
Operating income increased 17% year-over-year to $1.3 billion.
Backlog hit a new company record of $95.7 billion driven by strong Q4 awards.
Revenue by Segment
Forward Guidance
Northrop Grumman expects mid-single digit sales growth and continued strong performance in 2026.
Positive Outlook
- Sales guidance between $43.5B and $44.0B indicates expected growth.
- Segment operating income projected between $4.85B and $5.0B.
- Free cash flow guidance up to $3.5B.
- Strong backlog supports 2026 outlook.
- High operating margin expectations for Mission and Space Systems.
Challenges Ahead
- No assumption made for potential government shutdowns.
- Pressure from inflation and supply chain disruptions remains a risk.
- Guidance excludes potential future pension MTM adjustments.
- Aeronautics Systems margin expected to remain lower (~9%).
- Defense Systems growth guided only to mid-to-high $8B range.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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