NORTHROP GRUMMAN CORP /DE/
For the period ended Sep 30, 2026. Filed Oct 20, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 20, 2026
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10. Segment Information
- SEGMENT INFORMATION
The company is aligned infour operating sectors, which also comprise our reportable segments: Aeronautics Systems, Defense Systems, Mission Systems and Space Systems. We generally organize our segments based on the nature of products and services offered.
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The following table presents sales, operating costs and expenses, and operating income by segment:
| Three Months Ended September 30 | Nine Months Ended September 30 | |||
|---|---|---|---|---|
| $ in millions | 2026 | 2025 | 2026 | 2025 |
| Aeronautics Systems | ||||
| Sales | $3,575 | $3,142 | $10,377 | $9,070 |
| Operating costs and expenses: | ||||
| Product | 2,463 | 2,108 | 7,180 | 6,575 |
| Service | 698 | 690 | 2,048 | 1,940 |
| Intersegment | 37 | 39 | 105 | 112 |
| Aeronautics Systems operating income | 377 | 305 | 1,044 | 443 |
| Defense Systems | ||||
| Sales | 2,307 | 2,059 | 6,299 | 5,855 |
| Operating costs and expenses: | ||||
| Product | 1,717 | 1,483 | 4,668 | 4,117 |
| Service | 287 | 297 | 893 | 940 |
| Intersegment | 53 | 45 | 148 | 132 |
| Defense Systems operating income | 250 | 234 | 590 | 666 |
| Mission Systems | ||||
| Sales | 3,155 | 3,093 | 9,266 | 9,057 |
| Operating costs and expenses: | ||||
| Product | 1,895 | 1,825 | 5,477 | 5,500 |
| Service | 440 | 466 | 1,312 | 1,383 |
| Intersegment | 320 | 287 | 1,043 | 857 |
| Mission Systems operating income | 500 | 515 | 1,434 | 1,317 |
| Space Systems | ||||
| Sales | 2,749 | 2,698 | 7,982 | 7,912 |
| Operating costs and expenses: | ||||
| Product | 1,956 | 1,980 | 5,817 | 5,702 |
| Service | 321 | 297 | 909 | 1,021 |
| Intersegment | 160 | 123 | 473 | 328 |
| Space Systems operating income | 312 | 298 | 783 | 861 |
| Intersegment profit eliminations | (94) | (75) | (276) | (223) |
| Total segment operating income | 1,345 | 1,277 | 3,575 | 3,064 |
| FAS/CAS operating adjustment | 15 | 67 | 29 | 193 |
| Unallocated corporate expense | (91) | (102) | (250) | (17) |
| Total operating income | 1,269 | 1,242 | 3,354 | 3,240 |
| Other (expense) income | ||||
| Interest expense | (158) | (161) | (481) | (490) |
| Non-operating FAS pension benefit | 167 | 136 | 499 | 403 |
| Other, net | 20 | 106 | 124 | 175 |
| Earnings before income taxes | $1,298 | $1,323 | $3,496 | $3,328 |
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FAS/CAS Operating Adjustment
For financial statement purposes, we account for our employee pension plans in accordance with FAS. However, the cost of these plans is charged to our contracts in accordance with applicable Federal Acquisition Regulation (FAR) and CAS requirements. The FAS/CAS operating adjustment reflects the difference between CAS pension expense included as cost in segment operating income and the service cost component of FAS expense included in total operating income.
Unallocated Corporate Expense
Unallocated corporate expense includes the portion of corporate costs not considered allowable or allocable under applicable FAR and CAS requirements, and therefore not allocated to the segments, such as changes in deferred state income taxes and a portion of management and administration, legal, environmental, compensation, retiree benefits, advertising and other corporate unallowable costs. Unallocated corporate expense also includes costs not considered part of management’s evaluation of segment operating performance, such as amortization of purchased intangible assets and the additional depreciation expense related to the step-up in fair value of property, plant and equipment acquired through business combinations, as well as certain compensation and other costs.
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Disaggregation of Revenue
| Sales by Customer Type · Three Months Ended September 30 · Nine Months Ended September 30 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2026 · 2025 · 2026 · 2025 | ||||||||
| $ in millions | $%(3) | $%(3) | $%(3) | $%(3) | ||||
| Aeronautics Systems | ||||||||
| U.S. government(1) | $2,846 | 80% | $2,530 | 82% | $8,349 | 81% | $7,346 | 82% |
| International(2) | 665 | 19% | 564 | 18% | 1,857 | 18% | 1,586 | 18% |
| Other customers | 23 | 1% | 6 | —% | 55 | 1% | 17 | —% |
| Intersegment sales | 41 | 42 | 116 | 121 | ||||
| Aeronautics Systems sales | 3,575 | 3,142 | 10,377 | 9,070 | ||||
| Defense Systems | ||||||||
| U.S. government(1) | 1,934 | 86% | 1,570 | 78% | 5,263 | 86% | 4,632 | 81% |
| International(2) | 294 | 13% | 419 | 21% | 808 | 13% | 1,013 | 18% |
| Other customers | 20 | 1% | 19 | 1% | 62 | 1% | 61 | 1% |
| Intersegment sales | 59 | 51 | 166 | 149 | ||||
| Defense Systems sales | 2,307 | 2,059 | 6,299 | 5,855 | ||||
| Mission Systems | ||||||||
| U.S. government(1) | 2,244 | 81% | 2,166 | 79% | 6,403 | 80% | 6,421 | 80% |
| International(2) | 487 | 18% | 557 | 20% | 1,514 | 19% | 1,537 | 19% |
| Other customers | 38 | 1% | 31 | 1% | 114 | 1% | 84 | 1% |
| Intersegment sales | 386 | 339 | 1,235 | 1,015 | ||||
| Mission Systems sales | 3,155 | 3,093 | 9,266 | 9,057 | ||||
| Space Systems | ||||||||
| U.S. government(1) | 2,411 | 94% | 2,366 | 93% | 7,111 | 95% | 7,024 | 93% |
| International(2) | 37 | 1% | 63 | 2% | 128 | 2% | 154 | 2% |
| Other customers | 123 | 5% | 132 | 5% | 215 | 3% | 367 | 5% |
| Intersegment sales | 178 | 137 | 528 | 367 | ||||
| Space Systems sales | 2,749 | 2,698 | 7,982 | 7,912 | ||||
| Total | ||||||||
| U.S. government(1) | 9,435 | 85% | 8,632 | 83% | 27,126 | 85% | 25,423 | 84% |
| International(2) | 1,483 | 13% | 1,603 | 15% | 4,307 | 14% | 4,290 | 14% |
| Other customers | 204 | 2% | 188 | 2% | 446 | 1% | 529 | 2% |
| Total Sales | $11,122 | $10,423 | $31,879 | $30,242 | ||||
(1)Sales to the U.S. government include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is the U.S. government. Each of the company’s segments derives a substantial percentage of its revenue from the U.S. government.
(2) International sales include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is an international customer to the extent that information is available to us or can be reasonably estimated. These sales include foreign military sales contracted through the U.S. government.
(3) Percentages calculated based on external customer sales.
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| Sales by Contract Type · Three Months Ended September 30 · Nine Months Ended September 30 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2026 · 2025 · 2026 · 2025 | ||||||||
| $ in millions | $%(1) | $%(1) | $%(1) | $%(1) | ||||
| Aeronautics Systems | ||||||||
| Cost-type | $1,607 | 45% | $1,454 | 47% | $4,573 | 45% | $4,254 | 48% |
| Fixed-price | 1,927 | 55% | 1,646 | 53% | 5,688 | 55% | 4,695 | 52% |
| Intersegment sales | 41 | 42 | 116 | 121 | ||||
| Aeronautics Systems sales | 3,575 | 3,142 | 10,377 | 9,070 | ||||
| Defense Systems | ||||||||
| Cost-type | 1,234 | 55% | 1,028 | 51% | 3,461 | 56% | 3,077 | 54% |
| Fixed-price | 1,014 | 45% | 980 | 49% | 2,672 | 44% | 2,629 | 46% |
| Intersegment sales | 59 | 51 | 166 | 149 | ||||
| Defense Systems sales | 2,307 | 2,059 | 6,299 | 5,855 | ||||
| Mission Systems | ||||||||
| Cost-type | 1,131 | 41% | 1,219 | 44% | 3,387 | 42% | 3,788 | 47% |
| Fixed-price | 1,638 | 59% | 1,535 | 56% | 4,644 | 58% | 4,254 | 53% |
| Intersegment sales | 386 | 339 | 1,235 | 1,015 | ||||
| Mission Systems sales | 3,155 | 3,093 | 9,266 | 9,057 | ||||
| Space Systems | ||||||||
| Cost-type | 1,293 | 50% | 1,351 | 53% | 4,017 | 54% | 4,453 | 59% |
| Fixed-price | 1,278 | 50% | 1,210 | 47% | 3,437 | 46% | 3,092 | 41% |
| Intersegment sales | 178 | 137 | 528 | 367 | ||||
| Space Systems sales | 2,749 | 2,698 | 7,982 | 7,912 | ||||
| Total | ||||||||
| Cost-type | 5,265 | 47% | 5,052 | 48% | 15,438 | 48% | 15,572 | 51% |
| Fixed-price | 5,857 | 53% | 5,371 | 52% | 16,441 | 52% | 14,670 | 49% |
| Total Sales | $11,122 | $10,423 | $31,879 | $30,242 | ||||
(1)Percentages calculated based on external customer sales.
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| Sales by Geographic Region(1) · Three Months Ended September 30 · Nine Months Ended September 30 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2026 · 2025 · 2026 · 2025 | ||||||||
| $ in millions | $%(3) | $%(3) | $%(3) | $%(3) | ||||
| Aeronautics Systems | ||||||||
| United States | $2,869 | 81% | $2,536 | 82% | $8,404 | 82% | $7,363 | 82% |
| Asia/Pacific | 251 | 7% | 221 | 7% | 743 | 7% | 647 | 7% |
| Europe | 393 | 11% | 321 | 10% | 1,051 | 10% | 891 | 10% |
| Other geographic regions | 21 | 1% | 22 | 1% | 63 | 1% | 48 | 1% |
| Intersegment sales | 41 | 42 | 116 | 121 | ||||
| Aeronautics Systems sales | 3,575 | 3,142 | 10,377 | 9,070 | ||||
| Defense Systems | ||||||||
| United States | 1,954 | 87% | 1,589 | 79% | 5,325 | 87% | 4,693 | 82% |
| Asia/Pacific | 106 | 5% | 111 | 6% | 297 | 5% | 271 | 5% |
| Europe | 132 | 6% | 251 | 12% | 386 | 6% | 589 | 10% |
| Other geographic regions | 56 | 2% | 57 | 3% | 125 | 2% | 153 | 3% |
| Intersegment sales | 59 | 51 | 166 | 149 | ||||
| Defense Systems sales | 2,307 | 2,059 | 6,299 | 5,855 | ||||
| Mission Systems | ||||||||
| United States | 2,282 | 82% | 2,197 | 80% | 6,517 | 81% | 6,505 | 81% |
| Asia/Pacific | 112 | 4% | 147 | 5% | 374 | 5% | 407 | 5% |
| Europe | 266 | 10% | 318 | 12% | 820 | 10% | 820 | 10% |
| Other geographic regions | 109 | 4% | 92 | 3% | 320 | 4% | 310 | 4% |
| Intersegment sales | 386 | 339 | 1,235 | 1,015 | ||||
| Mission Systems sales | 3,155 | 3,093 | 9,266 | 9,057 | ||||
| Space Systems | ||||||||
| United States | 2,534 | 99% | 2,498 | 98% | 7,326 | 98% | 7,391 | 98% |
| Asia/Pacific | 14 | —% | 25 | 1% | 47 | 1% | 48 | 1% |
| Europe | 19 | 1% | 28 | 1% | 67 | 1% | 74 | 1% |
| Other geographic regions | 4 | —% | 10 | —% | 14 | —% | 32 | —% |
| Intersegment sales | 178 | 137 | 528 | 367 | ||||
| Space Systems sales | 2,749 | 2,698 | 7,982 | 7,912 | ||||
| Total | ||||||||
| United States | 9,639 | 87% | 8,820 | 85% | 27,572 | 86% | 25,952 | 86% |
| Asia/Pacific | 483 | 4% | 504 | 5% | 1,461 | 5% | 1,373 | 4% |
| Europe | 810 | 7% | 918 | 8% | 2,324 | 7% | 2,374 | 8% |
| Other geographic regions(2) | 190 | 2% | 181 | 2% | 522 | 2% | 543 | 2% |
| Total Sales | $11,122 | $10,423 | $31,879 | $30,242 | ||||
(1)Sales are attributed to countries based on the ultimate customer’s location to the extent that information is available to us or can be reasonably estimated. No country other than the United States represents greater than 10 percent of total company sales.
(2)Other geographic regions are principally comprised of the Middle East.
(3)Percentages calculated based on external customer sales.
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Capital Expenditures and Depreciation and Amortization
The following table presents capital expenditures and depreciation and amortization for each of our reportable segments and for Corporate:
| Three Months Ended September 30 | Nine Months Ended September 30 | |||
|---|---|---|---|---|
| $ in millions | 2026 | 2025 | 2026 | 2025 |
| Capital Expenditures | ||||
| Aeronautics Systems | $106 | $102 | $175 | $250 |
| Defense Systems | 33 | 21 | 77 | 44 |
| Mission Systems | 46 | 66 | 133 | 152 |
| Space Systems | 84 | 70 | 211 | 251 |
| Corporate(1) | 37 | 42 | 179 | 91 |
| Total capital expenditures | $306 | $301 | $775 | $788 |
| Depreciation and Amortization | ||||
| Aeronautics Systems | $97 | $92 | $274 | $273 |
| Defense Systems | 44 | 47 | 132 | 132 |
| Mission Systems | 73 | 71 | 212 | 206 |
| Space Systems | 98 | 98 | 293 | 261 |
| Corporate(1) | 67 | 71 | 207 | 194 |
| Total depreciation and amortization | $379 | $379 | $1,118 | $1,066 |
(1)Corporate amounts include the amortization of purchased intangible assets and the additional depreciation expense related to the step-up in fair value of PP&E acquired through business combinations as they are not considered part of management’s evaluation of segment operating performance.
Assets
Our chief operating decision maker (“CODM”) does not use assets by segment to evaluate segment performance or allocate resources. Therefore, we do not disclose assets by segment.
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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.