Northrop Grumman (NOC) official guidance

Based on our strong Q2 results and accelerating momentum, we are increasing our financial guidance for 2026. Robust bookings are continuing, and we now expect a full year book-to-bill ratio of at least 1.25 times.

When we think about 2026, given the strong backlog and the fact that we have some large significant programs with existing backlog, you should anticipate that book-to-bill around 1x sales for 2026.

As we previously shared, we expect CapEx investments of around 4.5% of sales in 2027 and 2028 as we invest in infrastructure to support the B-21 production ramp.

| Adjusted free cash flow1 | $3,100 — $3,500 |

We are reaffirming our guidance range for adjusted free cash flow of $3.1 billion-$3.5 billion.

| Adjusted free cash flow1 | $3,100 — $3,500 |

| Free cash flow1 | $3,100 — $3,500 |

| Free cash flow1 | $3,100 — $3,500 |

| Segment operating income1 | $4,940 — $5,040 |

| Segment operating income1 | $4,850 — $5,000 |

| Segment operating income1 | $4,850 — $5,000 |

| Segment operating income1 | $4,850 — $5,000 |

| Aeronautics Systems | ~$14 | High 9% |

On the bottom line, we are raising AS' operating margin rate to the mid-to-high 9% range, reflecting strong performance in the first half of the year and continued positive expectations for the second half.

| Aeronautics Systems | ~$14 | Mid to High 9% |

| Aeronautics Systems | Mid $13 | Low to Mid 9% |

Margins are projected to be low to mid 9%, reflecting the higher mix of development programs.

| Aeronautics Systems | Mid $13 | Low to Mid 9% |

| Mission Systems | High $12 | Mid 15% |

At Mission Systems, we are maintaining our guidance of high $12 billion in 2026 sales while raising our margin rate expectations to approximately 15%.

| Mission Systems | High $12 | ~15% |

| Mission Systems | High $12 | High 14% |

Investments in digital technology and factory utilization continue to drive efficiency improvements, with margin expected to improve further into the high 14% range this year.

| Mission Systems | High $12 | High 14% |

Segment operating income guidance reflects continued strong performance and a low- to mid-11% margin rate.

2026 segment operating income is projected to be between $4.85 billion-$5 billion, reflecting continued strong performance and a low to mid 11% segment operating margin.

We expect a segment OM rate in the low to mid 11% range.

| Sales | $43,750 — $44,250 |

As Kathy outlined earlier in the call, we are increasing our sales guidance to a range of $43.75 billion-$44.25 billion.

| Sales | $43,750 — $44,250 |

This includes full-year sales between $43.5 billion and $44 billion.

| Sales | $43,500 — $44,000 |

For 2026, we expect sales to be between $43.5 billion-$44 billion, representing mid-single-digit growth at the company.

| Sales | $43,500 — $44,000 |

We are increasing our mark-to-market adjusted EPS guidance to a range of $28.60-$29.10, an increase of $1.20.

| MTM-adjusted EPS1 | $28.60 — $29.10 |

| MTM-adjusted EPS1 | $27.40 — $27.90 |

2026 mark-to-market adjusted earnings per share are expected between $27.40-$27.90, up mid-single digits.

| MTM-adjusted EPS1 | $27.40 — $27.90 |

For DS, we are maintaining our outlook for sales in the mid-to-high $8 billion range and margins of approximately 10%.

| Defense Systems | Mid to High $8 | ~10% |

| Defense Systems | Mid to High $8 | ~10% |

Operating margins are expected to remain steady at around 10%, comparable to the performance in 2025, absent the $76 million favorable EAC adjustment on Sentinel.

| Defense Systems | Mid to High $8 | ~10% |

| Intersegment Eliminations | ~($2.7) | Mid 13% |

| Intersegment Eliminations | ~($2.4) | High 13% |

Lastly, intersegment eliminations are projected to be approximately $2.4 billion, with a high 13% OM rate.

| Intersegment Eliminations | ~($2.4) | High 13% |

| Space Systems | ~$11 | Low 10% |

| Space Systems | ~$11 | ~11% |

Operating income is forecasted to be in the 11% range, consistent with the prior year.

| Space Systems | ~$11 | ~11% |