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
Extracted filing text, with the paragraph anchors used by the comparison.
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Product and Service Analysis
The following table presents product and service sales and operating costs and expenses by segment:
| Three Months Ended September 30 · Nine Months Ended September 30 | ||||||||
|---|---|---|---|---|---|---|---|---|
| $ in millions | 2026 | 2025 | 2026 | 2025 | ||||
| Segment Information: | Sales | Operating Costs and Expenses | Sales | Operating Costs and Expenses | Sales | Operating Costs and Expenses | Sales | Operating Costs and Expenses |
| Aeronautics Systems | ||||||||
| Product | $2,736 | $2,463 | $2,296 | $2,108 | $7,870 | $7,180 | $6,715 | $6,575 |
| Service | 798 | 698 | 804 | 690 | 2,391 | 2,048 | 2,234 | 1,940 |
| Intersegment eliminations | 41 | 37 | 42 | 39 | 116 | 105 | 121 | 112 |
| Total Aeronautics Systems | 3,575 | 3,198 | 3,142 | 2,837 | 10,377 | 9,333 | 9,070 | 8,627 |
| Defense Systems | ||||||||
| Product | 1,920 | 1,717 | 1,657 | 1,483 | 5,129 | 4,668 | 4,639 | 4,117 |
| Service | 328 | 287 | 351 | 297 | 1,004 | 893 | 1,067 | 940 |
| Intersegment eliminations | 59 | 53 | 51 | 45 | 166 | 148 | 149 | 132 |
| Total Defense Systems | 2,307 | 2,057 | 2,059 | 1,825 | 6,299 | 5,709 | 5,855 | 5,189 |
| Mission Systems | ||||||||
| Product | 2,230 | 1,895 | 2,203 | 1,825 | 6,446 | 5,477 | 6,398 | 5,500 |
| Service | 539 | 440 | 551 | 466 | 1,585 | 1,312 | 1,644 | 1,383 |
| Intersegment eliminations | 386 | 320 | 339 | 287 | 1,235 | 1,043 | 1,015 | 857 |
| Total Mission Systems | 3,155 | 2,655 | 3,093 | 2,578 | 9,266 | 7,832 | 9,057 | 7,740 |
| Space Systems | ||||||||
| Product | 2,212 | 1,956 | 2,213 | 1,980 | 6,419 | 5,817 | 6,396 | 5,702 |
| Service | 359 | 321 | 348 | 297 | 1,035 | 909 | 1,149 | 1,021 |
| Intersegment eliminations | 178 | 160 | 137 | 123 | 528 | 473 | 367 | 328 |
| Total Space Systems | 2,749 | 2,437 | 2,698 | 2,400 | 7,982 | 7,199 | 7,912 | 7,051 |
| Segment Totals | ||||||||
| Total Product | $9,098 | $8,031 | $8,369 | $7,396 | $25,864 | $23,142 | $24,148 | $21,894 |
| Total Service | 2,024 | 1,746 | 2,054 | 1,750 | 6,015 | 5,162 | 6,094 | 5,284 |
| Total Segment(1) | $11,122 | $9,777 | $10,423 | $9,146 | $31,879 | $28,304 | $30,242 | $27,178 |
(1) A reconciliation of segment operating income to total operating income is included in “Segment Operating Results.”
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Product Sales and Costs
Third quarter 2026 product sales increased $729 million, or 9 percent, primarily due to higher sales on F-35, B-21 and TACAMO at Aeronautics Systems and higher volume on Sentinel, GMLRS ER, and tactical solid rocket motor programs at Defense Systems.
Third quarter 2026 product costs increased $635 million, or 9 percent, consistent with the higher product sales described above.
Year to date 2026 product sales increased $1.7 billion, or 7 percent, primarily due to higher sales on B-21, TACAMO and F-35 at Aeronautics Systems and higher volume on Sentinel, tactical solid rocket motor programs and across the IBCS portfolio at Defense Systems.
Year to date 2026 product costs increased $1.2 billion, or 6 percent, reflecting a higher operating margin rate principally due to the absence of the prior year B-21 loss provision at Aeronautics Systems.
Service Sales and Costs
Third quarter 2026 service sales decreased $30 million, or 1 percent, primarily due to completion of the Special Electronic Mission Aircraft program at Defense Systems in the prior year.
Third quarter 2026 service costs were comparable with the prior year period.
Year to date 2026 service sales decreased $79 million, or 1 percent, primarily due to lower restricted service sales at Space Systems, lower service volume at Defense Systems due to the training services divestiture, and lower volume on airborne electronic warfare programs at Mission Systems, partially offset by higher restricted service sales at Aeronautics Systems.
Year to date 2026 service costs decreased $122 million, or 2 percent, reflecting a higher operating margin rate principally driven by higher net EAC adjustments on service programs at Aeronautics Systems, Mission Systems and Space Systems.
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