Northrop Grumman (NYSE: NOC) delivered stronger-than-expected fourth-quarter results, though a softer outlook for 2026 weighed on shares, which fell over 2% in pre-market today.

The company reported earnings of $7.23 per share, exceeding the consensus estimate of $6.99, while revenue reached $11.7 billion, slightly ahead of expectations. Aeronautics Systems led growth, with sales climbing 18% year over year to $3.92 billion. Mission Systems revenue rose 9.7% to $3.45 billion, while Space Systems sales increased 5.5% to $2.86 billion. Defense Systems revenue advanced 7.2% to $2.15 billion.

Free cash flow surged 84% year over year to $3.24 billion, modestly above forecasts, while capital expenditures declined to $662 million. Backlog stood at $95.68 billion at the end of the quarter.

For fiscal 2026, Northrop Grumman projected earnings of $27.40 to $27.90 per share, below the consensus estimate of $28.85. Revenue was forecast at $43.5 billion to $44.0 billion, also trailing expectations. Free cash flow was guided to $3.10 billion to $3.50 billion, with capital spending expected to total about $1.65 billion.