Northrop Grumman Net Income Surges 82% to $875M in Q1 2026
The defense contractor posted net income of $875 million for the quarter ending March 31, 2026, up from $481 million a year earlier, as revenue climbed 4.4% to $9.88 billion.
Northrop Grumman Corp. (NYSE: NOC), a global defense and aerospace contractor, reported net income of $875 million for the three months ending March 31, 2026, an 82% increase from $481 million in the same period a year earlier. Diluted earnings per share rose to $6.14 from $3.32. Read more earnings reports.
Total revenue for the quarter reached $9.88 billion, up 4.4% from $9.47 billion in the first quarter of 2025. Operating income nearly doubled to $989 million from $573 million, reflecting improved margins across the company's business segments.
Cash Position Tightens Sharply
Cash and cash equivalents fell to $2.09 billion as of March 31, 2026, down from $4.40 billion at the end of December 2025, a decline of $2.31 billion. The company reported negative cash from operations of $1.66 billion for the quarter, compared to a negative $1.57 billion in the first quarter of 2025.
Cash used in investing activities totaled $168 million, while financing activities consumed $489 million, including debt repayments and shareholder distributions. Long-term debt decreased to $14.41 billion from $15.16 billion at year-end 2025.
Balance Sheet and Asset Position
Total assets stood at $50.01 billion as of March 31, 2026, down from $51.38 billion three months earlier. Current assets decreased to $14.77 billion from $15.29 billion, driven primarily by the cash reduction. Accounts receivable rose to $1.81 billion from $1.38 billion, while inventory increased to $1.45 billion from $1.31 billion.
Property, plant, and equipment declined to $10.24 billion from $10.97 billion. Goodwill remained essentially flat at $17.44 billion.
Liabilities and Equity
Total liabilities fell to $32.89 billion from $34.70 billion at year-end 2025. Current liabilities decreased to $12.82 billion from $13.88 billion, with accounts payable dropping to $2.68 billion from $3.24 billion. Stockholders' equity rose to $17.12 billion from $16.67 billion, reflecting the quarter's earnings. Retained earnings increased to $17.10 billion from $16.66 billion.
The company had 142.0 million shares outstanding as of March 31, 2026, compared to 142.0 million at the end of December 2025.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Total Revenue | $9.88 billion | $9.47 billion | +4.4% |
| Operating Income | $989 million | $573 million | +72.6% |
| Net Income | $875 million | $481 million | +81.9% |
| Diluted EPS | $6.14 | $3.32 | +84.9% |
| Cash from Operations | -$1.66 billion | -$1.57 billion | -5.8% |
| Total Assets | $50.01 billion | $51.38 billion* | -2.7% |
| Long-Term Debt | $14.41 billion | $15.16 billion* | -4.9% |
*As of December 31, 2025