Northrop Grumman drops as Q1 cash burn overshadows sales, EPS beat and reaffirmed outlook
Northrop Grumman shares slid after Q1 2026 results showed strong earnings but a large cash outflow. The company reported $9.9B in sales and $6.14 EPS, while net cash used in operations was $1.656B and full-year guidance was reaffirmed.
1) What’s moving the stock
Northrop Grumman (NOC) is down about 3.77% in Tuesday’s session after releasing first-quarter 2026 results that beat on revenue and posted solid profit, but showed a sizable cash outflow. The company reported sales of about $9.9 billion and EPS of $6.14, while net cash used in operating activities was about $1.656 billion, drawing investor focus to cash conversion rather than earnings strength. (tradingview.com)
2) The key numbers investors are reacting to
Net earnings were about $875 million, and the company ended the quarter with backlog around $95.6 billion. Management reaffirmed full-year 2026 guidance, including sales of $43.5–$44.0 billion and free cash flow of $3.1–$3.5 billion, but the magnitude of Q1 cash usage raised near-term questions about the timing of receipts and working-capital needs. (tradingview.com)
3) What happens next
With full-year targets unchanged, the market is now treating Q1 as a cash-flow “setup” quarter and will look for a rebound in operating cash generation over the next two quarters to keep the $3.1–$3.5 billion free-cash-flow range on track. The next catalyst is management’s commentary around drivers of cash usage and program execution, as investors gauge whether the cash dynamics are primarily seasonal or reflect tighter program economics. (tradingview.com)