Q2 25 EPS
$8.15
BEAT +19.85%
Est. $6.80
Q2 25 Revenue
$10.35B
vs S&P Since Q2 25
-12.1%
TRAILING MARKET
NOC +2.5% vs S&P +14.6%
Market Reaction
Did NOC Beat Earnings? Q2 2025 Results
Northrop Grumman delivered a standout second quarter, posting earnings of $8.15 per diluted share against a consensus estimate of $6.80, a 19.85% beat, as the defense giant's operational momentum and a $231 million gain from the divestiture of its tr… Read more Northrop Grumman delivered a standout second quarter, posting earnings of $8.15 per diluted share against a consensus estimate of $6.80, a 19.85% beat, as the defense giant's operational momentum and a $231 million gain from the divestiture of its training services business combined to drive results well ahead of expectations. Revenue came in at $10.35 billion, up 1.3% year-over-year, with Mission Systems emerging as the clear segment standout, surging 14% to $3.16 billion on the strength of a restricted program award and higher marine and radar volumes. Overall segment operating margin expanded 100 basis points to 11.8%, with all four business units posting improvement. Shares rallied on the results, even as rival Lockheed Martin struggled with significant legacy program losses, underscoring the divergent fortunes across the sector. Looking ahead, Northrop raised its full-year MTM-adjusted EPS guidance to $25.00–$25.40 and lifted its free cash flow outlook to $3.05–$3.35 billion, signaling continued confidence in its portfolio despite Space Systems headwinds and ongoing B-21 cost pressures.
Key Takeaways
- • 18% international sales growth in Q2
- • Mission Systems sales growth of 14% driven by restricted award inventory liquidation, marine systems, international ground-based radar, and navigation systems
- • Defense Systems margin expansion to 12.7% from 10.3% driven by $76 million favorable Sentinel EAC adjustment
- • Higher net EAC adjustments across multiple segments from improved production efficiencies
- • Training services divestiture contributed $1.04 per diluted share benefit
- • Segment operating margin rate improved 100 basis points to 11.8%
NOC YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
NOC Revenue by Segment
With YoY comparisons, source: SEC Filings
“The Northrop Grumman team delivered a strong second quarter, with increased sales and outstanding operating performance. We are working with our customers to accelerate capability delivery to enable their vision of peace through strength. We continue to see growing demand globally for our broad range of product offerings, which resulted in 18% international sales growth in the quarter. With confidence in our team and our ability to deliver for our customers, we are increasing our full-year guidance for segment operating income, EPS and free cash flow.”
— Kathy Warden, Q2 2025 Earnings Press Release
NOC Earnings Trends
NOC vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
NOC EPS Trend
Earnings per share: estimate vs actual
NOC Revenue Trend
Quarterly revenue: estimate vs actual
NOC Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $6.14 | — | $9.88B | +1.28% |
| Q4 25 BEAT FY | $6.96 | $7.23 | +3.88% | $11.71B | — |
| FY Full Year | — | $26.34 | — | $41.95B | — |
| Q3 25 BEAT | $6.46 | $7.67 | +18.73% | $10.42B | — |
| Q2 25 BEAT | $6.80 | $8.15 | +19.85% | $10.35B | — |
| Q1 25 MISS | $6.26 | $3.32 | -46.96% | $9.47B | — |