Revenue growth has stabilized at 4.4% year-over-year as of 2026Q1, though operating margins remain constrained near 10% due to the high fixed-cost base inherent in specialized defense manufacturing.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 42.37B | 41.95B | 41.03B | 39.29B | 36.6B | 35.67B | 36.8B | 33.84B | 30.09B | 25.8B | 24.51B | 23.53B | 23.98B | 24.66B | 25.22B | 26.41B | 28.14B | 33.76B | 33.89B | 32.02B | 30.15B | 30.72B | 29.85B | 26.21B | 17.21B | 13.56B | 7.62B | 8.99B | 8.9B | 9.15B | 8.07B |
| Revenue Growth % | 4.95% | 2.24% | 4.44% | 7.34% | 2.62% | -3.08% | 8.74% | 12.45% | 16.63% | 5.28% | 4.17% | -1.89% | -2.77% | -2.21% | -4.52% | -6.15% | -16.63% | -0.39% | 5.84% | 6.2% | -1.87% | 2.91% | 13.92% | 52.31% | 26.91% | 77.97% | -15.31% | 1.04% | -2.74% | 13.41% | 18.38% |
| Cost of Goods Sold | 33.67B | 33.64B | 32.67B | 32.74B | 29.13B | 28.4B | 29.32B | 26.58B | 23.3B | 19.85B | 18.73B | 17.88B | 18.38B | 19.28B | 19.64B | 20.79B | 22.85B | 28.13B | 27.7B | 25.8B | 24.66B | 25.59B | 25.14B | 22.32B | 14.1B | 11.22B | 5.07B | 6.46B | 6.54B | 6.62B | 5.85B |
| COGS % of Revenue | - | 80.19% | 79.62% | 83.33% | 79.58% | 79.62% | 79.68% | 78.55% | 77.43% | 76.93% | 76.43% | 76.02% | 76.64% | 78.19% | 77.87% | 78.7% | 81.19% | 83.34% | 81.74% | 80.59% | 81.8% | 83.3% | 84.2% | 85.18% | 81.97% | 82.75% | 66.49% | 71.85% | 73.43% | 72.35% | 72.47% |
| Gross Profit | 8.69B | 8.31B | 8.36B | 6.55B | 7.47B | 7.27B | 7.48B | 7.26B | 6.79B | 5.95B | 5.78B | 5.64B | 5.6B | 5.38B | 5.58B | 5.63B | 5.29B | 5.63B | 6.19B | 6.21B | 5.49B | 5.13B | 4.72B | 3.88B | 3.1B | 2.34B | 2.55B | 2.53B | 2.37B | 2.53B | 2.22B |
| Gross Margin % | 20.52% | 19.81% | 20.38% | 16.67% | 20.42% | 20.38% | 20.32% | 21.45% | 22.57% | 23.07% | 23.57% | 23.98% | 23.36% | 21.81% | 22.13% | 21.3% | 18.81% | 16.66% | 18.26% | 19.41% | 18.2% | 16.7% | 15.8% | 14.82% | 18.03% | 17.25% | 33.51% | 28.15% | 26.57% | 27.65% | 27.53% |
| Gross Profit Growth % | - | -0.59% | 27.64% | -12.35% | 2.83% | -2.81% | 3.02% | 6.89% | 14.06% | 3.06% | 2.39% | 0.73% | 4.13% | -3.6% | -0.82% | 6.27% | -5.88% | -9.11% | -0.4% | 13.23% | 6.96% | 8.75% | 21.47% | 25.21% | 32.62% | -8.38% | 0.83% | 7.06% | -6.56% | 13.91% | 24.9% |
| Operating Expenses | 4B | 4.03B | 3.99B | 4.01B | 3.87B | 1.62B | 3.41B | 3.29B | 3.04B | 2.71B | 2.63B | 2.57B | 2.4B | 2.26B | 2.4B | 23.14B | 2.47B | 3.14B | 6.3B | 3.21B | 3.03B | 2.95B | 2.68B | 2.35B | 1.71B | 1.33B | 1.46B | 1.56B | 1.61B | 1.65B | 1.56B |
| OpEx % of Revenue | - | 9.61% | 9.73% | 10.22% | 10.58% | 4.53% | 9.27% | 9.72% | 10.1% | 10.51% | 10.74% | 10.91% | 10.03% | 9.15% | 9.53% | 87.6% | 8.77% | 9.31% | 18.59% | 10.02% | 10.06% | 9.61% | 8.97% | 8.95% | 9.94% | 9.85% | 19.1% | 17.38% | 18.07% | 18.04% | 19.38% |
| Selling, General & Admin | 4B | 4.03B | 2.89B | 3.91B | 1.14B | 227M | 3.25B | 4.29B | 2.62B | 1.48B | 2.97B | 2.57B | 2.4B | 2.26B | 2.45B | 2.35B | 2.47B | 3.14B | 3.24B | 3.21B | 3.03B | 2.95B | 2.71B | 2.35B | 1.71B | 1.33B | 1.07B | 1.17B | 1.22B | 1.23B | 1.2B |
| SG&A % of Revenue | - | 9.61% | 7.05% | 9.94% | 3.1% | 0.64% | 8.83% | 12.68% | 8.7% | 5.72% | 12.12% | 10.91% | 10.03% | 9.15% | 9.72% | 8.9% | 8.77% | 9.31% | 9.56% | 10.02% | 10.06% | 9.61% | 9.08% | 8.95% | 9.94% | 9.85% | 14.1% | 13.05% | 13.66% | 13.47% | 14.83% |
| Research & Development | 0 | 1.1B | 1.1B | 1.2B | 1.2B | 1.1B | 0 | 953M | 764M | 639M | 705M | 712M | 569M | 507M | 520M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 2.62% | 2.68% | 3.05% | 3.28% | 3.08% | - | 2.82% | 2.54% | 2.48% | 2.88% | 3.03% | 2.37% | 2.06% | 2.06% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | -1.1B | -1M | -1.09B | 1.54B | 290M | 164M | -1.95B | -341M | 596M | -1.04B | -712M | -569M | -507M | 0 | 0 | 0 | 0 | 3.06B | 0 | 0 | 0 | -35M | 0 | 0 | 0 | 381M | 389M | 393M | 418M | 367M |
| Operating Income | 4.7B | 4.28B | 4.37B | 2.54B | 3.6B | 5.65B | 4.07B | 3.97B | 3.78B | 3.3B | 3.19B | 3.08B | 3.2B | 3.12B | 3.13B | 3.28B | 2.83B | 2.48B | -111M | 3.01B | 2.45B | 2.18B | 2.04B | 1.54B | 1.39B | 1B | 1.1B | 969M | 756M | 880M | 658M |
| Operating Margin % | 11.08% | 10.2% | 10.65% | 6.46% | 9.84% | 15.84% | 11.05% | 11.73% | 12.56% | 12.79% | 13.03% | 13.07% | 13.33% | 12.66% | 12.41% | 12.4% | 10.05% | 7.36% | -0.33% | 9.39% | 8.14% | 7.09% | 6.84% | 5.87% | 8.08% | 7.41% | 14.41% | 10.77% | 8.49% | 9.61% | 8.15% |
| Operating Income Growth % | - | -2.06% | 72.25% | -29.55% | -36.28% | 39.02% | 2.42% | 5% | 14.58% | 3.32% | 3.8% | -3.75% | 2.34% | -0.22% | -4.46% | 15.88% | 13.85% | 2336.94% | -103.69% | 22.49% | 12.67% | 6.71% | 32.7% | 10.57% | 38.55% | -8.56% | 13.31% | 28.17% | -14.09% | 33.74% | 22.76% |
| EBITDA | 6.2B | 5.75B | 5.74B | 3.88B | 4.94B | 6.89B | 5.33B | 5.23B | 4.58B | 3.77B | 3.65B | 3.54B | 3.66B | 3.62B | 3.64B | 3.82B | 3.38B | 3.07B | 650M | 3.73B | 3.15B | 2.93B | 2.76B | 2.17B | 1.92B | 1.65B | 1.48B | 1.36B | 1.15B | 1.3B | 1.02B |
| EBITDA Margin % | 14.64% | 13.71% | 13.99% | 9.86% | 13.5% | 19.32% | 14.49% | 15.47% | 15.22% | 14.63% | 14.89% | 15.06% | 15.25% | 14.67% | 14.43% | 14.46% | 12.02% | 9.09% | 1.92% | 11.63% | 10.43% | 9.55% | 9.24% | 8.29% | 11.14% | 12.16% | 19.41% | 15.1% | 12.91% | 14.18% | 12.7% |
| EBITDA Growth % | 17.48% | 0.21% | 48.13% | -21.61% | -28.26% | 29.22% | 1.87% | 14.28% | 21.36% | 3.43% | 2.99% | -3.14% | 1.11% | -0.6% | -4.71% | 12.95% | 10.23% | 372% | -82.55% | 18.44% | 7.23% | 6.35% | 26.92% | 13.41% | 16.19% | 11.49% | 8.91% | 18.19% | -11.48% | 26.63% | 25.61% |
| D&A (Non-Cash Add-back) | 1.51B | 1.47B | 1.37B | 1.34B | 1.34B | 1.24B | 1.27B | 1.26B | 800M | 475M | 456M | 467M | 462M | 495M | 510M | 544M | 555M | 585M | 761M | 719M | 691M | 755M | 717M | 635M | 525M | 645M | 381M | 389M | 393M | 418M | 367M |
| EBIT | 5.99B | 5.73B | 5.47B | 2.89B | 6.34B | 7.5B | 4.32B | 2.97B | 4.3B | 4.45B | 2.98B | 3.08B | 3.2B | 3.12B | 3.18B | 3.3B | 2.63B | 2.55B | -225M | 3.02B | 2.63B | 2.2B | 1.99B | 1.47B | 1.12B | 1.03B | 1.1B | 954M | 752M | 880M | 703M |
| Net Interest Income | -671M | -665M | -621M | -545M | -506M | -556M | -593M | -528M | -562M | -360M | -301M | -301M | -282M | -257M | -212M | -221M | -269M | -281M | -295M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 671M | 665M | 621M | 545M | 506M | 556M | 593M | 528M | 562M | 360M | 301M | 301M | 282M | 257M | 212M | 221M | 269M | 281M | 295M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 824M | 788M | 646M | -191M | 2.23B | 3.29B | -337M | -1.42B | -38M | 1.01B | -270M | -286M | -259M | -260M | -165M | -193M | -232M | -217M | -257M | -320M | -178M | -113M | -391M | -413M | -111M | -306M | -123M | -207M | -443M | -229M | -271M |
| Pretax Income | 5.52B | 5.07B | 5.02B | 2.35B | 5.84B | 8.94B | 3.73B | 2.55B | 3.74B | 3.05B | 2.92B | 2.79B | 2.94B | 2.86B | 2.96B | 3.08B | 2.37B | 2.27B | -368M | 2.69B | 2.28B | 2.04B | 1.61B | 1.13B | 1.01B | 699M | 975M | 762M | 312M | 651M | 384M |
| Pretax Margin % | 13.03% | 12.08% | 12.22% | 5.97% | 15.94% | 25.06% | 10.13% | 7.53% | 12.43% | 11.82% | 11.93% | 11.86% | 12.25% | 11.61% | 11.76% | 11.67% | 8.41% | 6.71% | -1.09% | 8.39% | 7.55% | 6.65% | 5.41% | 4.32% | 5.86% | 5.16% | 12.8% | 8.47% | 3.5% | 7.11% | 4.76% |
| Income Tax | 944M | 886M | 842M | 290M | 940M | 1.93B | 539M | 300M | 513M | 1.03B | 723M | 800M | 868M | 911M | 987M | 997M | 462M | 693M | 913M | 883M | 709M | 661M | 522M | 323M | 312M | 272M | 350M | 279M | 118M | 244M | 150M |
| Effective Tax Rate % | 17.1% | 17.48% | 16.79% | 12.36% | 16.11% | 21.63% | 14.46% | 11.77% | 13.71% | 33.91% | 24.73% | 28.67% | 29.55% | 31.82% | 33.29% | 32.34% | 19.53% | 30.58% | -248.1% | 32.87% | 31.15% | 32.34% | 32.32% | 28.56% | 30.92% | 38.91% | 35.9% | 36.61% | 37.82% | 37.48% | 39.06% |
| Net Income | 4.58B | 4.18B | 4.17B | 2.06B | 4.9B | 7B | 3.19B | 2.25B | 3.23B | 2.02B | 2.2B | 1.99B | 2.07B | 1.95B | 1.98B | 2.12B | 2.05B | 1.69B | -1.26B | 1.79B | 1.54B | 1.4B | 1.08B | 866M | 64M | 427M | 608M | 467M | 194M | 407M | 234M |
| Net Margin % | 10.8% | 9.97% | 10.17% | 5.23% | 13.38% | 19.64% | 8.67% | 6.64% | 10.73% | 7.81% | 8.98% | 8.46% | 8.63% | 7.92% | 7.84% | 8.02% | 7.29% | 4.99% | -3.72% | 5.59% | 5.11% | 4.56% | 3.63% | 3.3% | 0.37% | 3.15% | 7.98% | 5.19% | 2.18% | 4.45% | 2.9% |
| Net Income Growth % | 23.31% | 0.19% | 103.02% | -58.01% | -30.11% | 119.66% | 41.86% | -30.38% | 60.25% | -8.41% | 10.55% | -3.82% | 5.99% | -1.31% | -6.61% | 3.17% | 21.77% | 233.6% | -170.5% | 16.08% | 10.14% | 29.15% | 25.17% | 1253.13% | -85.01% | -29.77% | 30.19% | 140.72% | -52.33% | 73.93% | -7.14% |
| Net Income (Continuing) | 4.58B | 4.18B | 4.17B | 2.06B | 4.9B | 7B | 3.19B | 2.25B | 3.23B | 2.87B | 2.2B | 1.99B | 2.07B | 1.95B | 1.98B | 2.09B | 1.9B | 1.57B | -1.28B | 1.8B | 1.57B | 1.4B | 1.09B | 758M | 455M | 459M | 625M | 474M | 193M | 407M | 264M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13M | 139M | 122M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 32.11 | 29.08 | 28.34 | 13.53 | 31.47 | 43.54 | 19.03 | 13.22 | 18.49 | 11.47 | 12.19 | 10.39 | 9.75 | 8.35 | 7.81 | 7.52 | 6.82 | 5.21 | -3.77 | 5.12 | 4.37 | 3.85 | 2.97 | 2.09 | 1.84 | 2.37 | 4.29 | 3.35 | 1.40 | 2.99 | 2.08 |
| EPS Growth % | 26.09% | 2.61% | 109.46% | -57.01% | -27.72% | 128.8% | 43.95% | -28.5% | 61.2% | -5.91% | 17.32% | 6.56% | 16.77% | 6.91% | 3.86% | 10.26% | 30.9% | 238.2% | -173.63% | 17.16% | 13.51% | 29.63% | 42.11% | 13.59% | -22.36% | -44.76% | 28.06% | 139.29% | -53.18% | 43.75% | -11.86% |
| EPS (Basic) | - | 29.14 | 28.39 | 13.57 | 31.61 | 43.70 | 19.08 | 13.28 | 18.59 | 11.55 | 12.30 | 10.51 | 9.91 | 8.50 | 7.96 | 7.65 | 6.91 | 5.28 | -3.77 | 5.24 | 4.46 | 3.93 | 3.01 | 2.11 | 1.87 | 2.39 | 4.31 | 3.37 | 1.42 | 3.05 | 2.11 |
| Diluted Shares Outstanding | 142.5M | 143.8M | 147.3M | 152M | 155.6M | 160.9M | 167.6M | 170M | 174.6M | 175.6M | 180.5M | 191.6M | 212.1M | 233.9M | 253.4M | 281.6M | 301.1M | 323.3M | 334.5M | 354.3M | 358.6M | 363.2M | 365M | 408.61M | 228.82M | 172.57M | 141.76M | 139.61M | 139.07M | 136.12M | 127.23M |
| Basic Shares Outstanding | 142.1M | 143.5M | 147M | 151.5M | 154.9M | 160.3M | 167.1M | 169.3M | 173.7M | 174.4M | 178.9M | 189.4M | 208.8M | 229.6M | 248.6M | 276.8M | 296.9M | 319.2M | 334.5M | 341.7M | 345.7M | 356.5M | 359.7M | 404.74M | 224.9M | 171.13M | 141.16M | 138.78M | 137.1M | 133.44M | 125.12M |
| Dividend Payout Ratio | - | 30.92% | 28.41% | 54.28% | 21.49% | 14.03% | 29.88% | 39.15% | 25.43% | 34.19% | 29.09% | 30.3% | 27.21% | 27.92% | 27.05% | 25.64% | 26.55% | 31.97% | - | 28.16% | 26.07% | 25.64% | 29.7% | 35.22% | 320.31% | 37% | 18.75% | 23.77% | 56.19% | 25.06% | 37.18% |
Sentinel program cost overruns
As reported in recent financial statements, Northrop Grumman’s revenue growth has stabilized at a 4.4% year-over-year increase in 2026Q1, reflecting the long-cycle nature of its defense backlog and the ongoing transition of major programs like the B-21 Raider into the low-rate initial production phase.
The company’s revenue trajectory appears tethered to federal procurement cycles rather than broader economic conditions, providing a predictable but constrained growth profile. Investors should monitor whether the current pace of expansion can be sustained as the company navigates the regulatory scrutiny surrounding its major strategic programs.
Based on the provided income statement data, gross margins have fluctuated significantly, reaching 19.8% in 2026Q1, which highlights the inherent risks of managing complex, long-term defense contracts where cost-plus and fixed-price structures create periodic pressure on profitability during the transition from development to full-scale production.
The variability in gross margins suggests that operational execution on high-stakes programs is the primary driver of profitability, rather than simple pricing power. The dip in margins during earlier periods indicates that unforeseen cost escalations can rapidly erode the bottom line, necessitating careful oversight of contract performance.
According to the quarterly income statement, operating margins have hovered around 10% in recent periods, suggesting that the company’s high fixed-cost base for specialized labor and secure facilities limits its ability to significantly scale operating income faster than gross profit during periods of moderate revenue growth.
The persistence of SG&A expenses relative to operating income implies that the company maintains a heavy administrative and R&D burden to support its classified programs. This structure suggests that meaningful margin expansion may be difficult to achieve without significant improvements in operational efficiency or program-level cost control.
As indicated by the historical data, net income has experienced notable volatility, including a significant loss in 2023Q4, which underscores how non-operating items and accounting adjustments, such as the FAS/CAS pension spread, can distort the underlying earnings power of the business in any given quarter.
The divergence between operating income and net income suggests that investors must look past headline EPS to understand the true cash-generating capacity of the firm. The impact of these accounting nuances warrants further investigation to determine if the current earnings recovery is sustainable or merely a result of favorable adjustments.
Based on the reported figures, the Sentinel program’s cost breach represents a material risk to the company's future profitability, as the potential for mandatory restructuring or budget reallocations could undermine the long-term revenue stability that the market currently prices into the stock's valuation multiples.
Short-term performance may mask deeper operational challenges associated with managing massive, multi-decade infrastructure projects under intense regulatory scrutiny. If the company fails to contain costs on these critical programs, the resulting margin compression could lead to a significant re-rating of the stock by institutional investors.
Quick answers to the most common questions about buying NOC stock.
For fiscal year 2025, Northrop Grumman Corporation (NOC) reported total revenue of $41.95B. This represents a 419.8% increase compared to $8.07B in 1996.
Northrop Grumman Corporation (NOC) is profitable, generating $4.18B in net income for the fiscal year ending 2025 with a net profit margin of 10.0%.
Northrop Grumman Corporation (NOC) reported an operating income of $4.28B, resulting in an operating profit margin of 10.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Northrop Grumman Corporation (NOC) generated $8.31B in gross profit for the year, representing a gross profit margin of 19.8%. This demonstrates the company's core pricing power and production efficiency.