Northrop Grumman raises 2026 outlook as weapons demand surges

Northrop Grumman raised its 2026 sales and profit outlook after another quarter of strong weapons demand, with second-quarter sales climbing to $10.9 billion. The Falls Church, Virginia-based defense contractor said the improved view reflected continued strong demand and a deeper backlog that gives it more revenue visibility heading into next year.

The company now expects 2026 sales of $43.75 billion to $44.25 billion, up $250 million from its prior range, and sees adjusted profit of $28.60 to $29.10 a share, compared with an earlier forecast of $27.40 to $27.90. Northrop said net awards totaled $9.8 billion in the quarter, while backlog reached $96 billion. A separate filing summary put the backlog even higher, at a record $105 billion, underscoring how much work is already booked across the company’s portfolio.

That portfolio spans missiles, aircraft systems, space programs and other high-value Pentagon contracts, making Northrop a closely watched proxy for the broader defense cycle. The company said quarterly sales grew 10% sequentially and 5% from a year earlier, a sign that demand is not only holding up but still translating into higher production and contract flow. Its second-quarter earnings call was scheduled for 9:30 a.m. Eastern Time on July 21.

The raised forecast fits a wider pattern in U.S. and allied defense spending, as governments replenish inventories, modernize arsenals and respond to a more unsettled geopolitical environment. In practice, that has kept procurement pipelines active for systems tied to deterrence, missile defense and long-lead military platforms. Northrop’s numbers suggest that those priorities are feeding directly into the company’s order book rather than waiting for future budget cycles.

The stronger outlook also matters because Northrop has already been benefiting from this demand backdrop in earlier years, when it lifted forecasts on weapons demand in 2023 and again raised its profit outlook on strong demand in 2025. The latest increase indicates that the cycle has not cooled. Instead, weapons demand is staying high enough to improve guidance, fatten backlog and extend visibility for a company that sits near the center of the U.S. defense industrial base.