On July 21, Northrop Grumman declined 3.62% in pre-market trading, trading at $505.0/share, with turnover of $844,600, following the release of its second-quarter earnings report.

The defense contractor reported Q2 adjusted EPS of $6.77, missing the analyst consensus estimate of $6.82 by 0.73%, representing a 4.78% year-over-year decline. While GAAP EPS of $7.68 topped the FactSet estimate of $6.84, and quarterly sales of $10.876 billion exceeded the $10.803 billion estimate, the adjusted earnings miss and year-over-year profit erosion weighed on sentiment. The company raised its full-year 2026 sales guidance to $43.75 billion-$44.25 billion, roughly in line with the FactSet consensus of $44.00 billion.

Northrop reported strong Q2 net awards exceeding $20 billion and a backlog of $105 billion. However, the earnings decline follows ongoing investor concerns over incremental capital spending of approximately $2.5 billion to support the B-21 bomber ramp, which has pressured the company's medium-term free cash flow outlook.

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