Northrop Grumman Corporation NOC is scheduled to release first-quarter 2026 results on April 21, before market open. The company delivered an earnings surprise of 3.3% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Key Factors Likely to Influence NOC’s Q1 Results
Northrop Grumman’s first-quarter results are likely to reflect solid execution across all its business segments. A key positive remains the company’s robust backlog, which offers strong visibility into near-term revenue streams. Ongoing global geopolitical tensions continue to support elevated defense spending. Northrop Grumman’s portfolio — spanning strategic aircraft, radar systems, and missiles— aligns closely with current military priorities. This alignment is expected to have sustained order momentum and supported high utilization levels in the to-be-reported quarter.
The company’s top line is likely to have benefited from the ramp-up of major programs, particularly in missile systems, airborne radar, and strategic modernization efforts. These programs are transitioning into higher production phases, which typically boosts revenues.
However, the B-21 Raider program might have offset some of the positives. Profitability has already been negatively impacted by previous cost overruns in this massive, fixed-price development and production effort. The bottom line might have suffered if further cost increases or adverse adjustments take place during the first quarter.
Higher corporate unallocated expenses and the federal tax rate are expected to have offset some of the positives in the quarter.
NOC’s Q1 Expectations
The Zacks Consensus Estimate for earnings is pegged at $6.08 per share, indicating a year-over-year increase of 0.3%.
The Zacks Consensus Estimate for revenues is pinned at $9.84 billion, implying a year-over-year improvement of 4%.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Northrop Grumman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Northrop Grumman Corporation Price and EPS Surprise
Northrop Grumman Corporation price-eps-surprise | Northrop Grumman Corporation Quote
Earnings ESP: The company’s Earnings ESP is +0.22%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, the company carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
Other Stocks to Consider
Investors may also consider the following players from the same industry as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
RTX Corporation RTX is likely to come up with an earnings beat when it announces first-quarter results on April 21, before market open. It has an Earnings ESP of +1.68% and a Zacks Rank #3 at present.
The consensus estimate for RTX’s first-quarter sales suggests an improvement of 6.2% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 10.6% for the trailing four quarters.
GE Aerospace GE is likely to come up with an earnings beat when it announces first-quarter results on April 21, before market open. It has an Earnings ESP of +0.79% and a Zacks Rank #3 at present.
The consensus estimate for GE’s first-quarter sales suggests an improvement of 17.9% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 14.3% for the trailing four quarters.
L3Harris Technologies LHX is expected to come up with an earnings beat when it reports first-quarter results on April 30, before market open. It has an Earnings ESP of +0.49% and a Zacks Rank #3 at present.
The consensus estimate for LHX’s first-quarter sales implies an improvement of 5.1% from the year-ago quarter’s level. The Zacks Consensus Estimate for earnings is pinned at $2.56 per share, indicating year-over-year growth of 6.2%.
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This article originally published on Zacks Investment Research (zacks.com).