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Northrop Grumman Corporation

AerospaceFounded 1994
Reviewed by Swet Parvadiya
Company data updated: October 2026
Independent Editorial Analysis
8 historical events · Editorial analysis

Northrop Grumman Company Profile: Revenue, Business Model & Strategy

Research depth: 8 milestones · 10 FAQs

Northrop Grumman reported 2025 sales of $41.95 billion and net earnings of $4.18 billion, with about 95,000 employees and a record $95.7 billion year-end backlog. Kathy Warden is chair, CEO and president.

How Northrop Grumman makes money: Northrop Grumman is a government contractor: the large majority of its sales come from the U.S. government, with the rest from allied governments (often through Foreign Military Sales) and a small commercial space…

Revenue & employeesCEO historyFoundersBusiness model
Annual Revenue (FY2025)$42B
Employees95,000
CEOKathy Warden
Founded1994
IndustryAerospace & Defense
By Swet ParvadiyaLast reviewed:
Data sources: annual reports, SEC filings, methodology
Industry:Aerospace

Northrop Grumman Corporation key figures

Northrop Grumman Corporation had revenue of $42B for fiscal year 2025, up 2.2% from FY2024. Net income was $4.2B, a net margin of 10.0%.

Source: NORTHROP GRUMMAN CORP /DE/ annual report (Form 10-K, SEC EDGAR, filed 2026-01-27) · Last reviewed October 2026

Revenue growth, FY2016 to FY2025
+6.1% a year
Compound annual rate, $24.7B to $42B
Peak revenue year
FY2025
The latest annual year is the highest in this series
Revenue per employee
$441,621
FY2025 revenue divided by 95,000 employees; headcount may use another date
Current chief executive
Kathy Warden
In the role since 2019 (7 years)
Documented transactions
4
Between 1994 and 2018
Founded
1994
32 years ago
Where was Northrop Grumman founded?
Northrop Grumman was founded in Hawthorne, California, United States in 1994.
When did Northrop Grumman start?
Northrop Grumman was founded in 1994.
Who founded Northrop Grumman?
Northrop Grumman was founded by Jack Northrop and Leroy Grumman.
How old is Northrop Grumman?
Northrop Grumman is 32 years old as of 2026.
In-Depth Analysis
349 words · 2 min read

Northrop Grumman took its current shape in 1994, when Northrop Corporation, maker of the B-2 stealth bomber, won a bidding contest with Martin Marietta to buy Grumman, the Long Island company behind the F-14 Tomcat and the Apollo Lunar Module. Facing falling post-Cold War budgets, the combined company kept buying: Westinghouse's defense electronics unit in 1996, Logicon in 1997, Litton in 2001 and TRW in 2002. It spun off its shipyards as Huntington Ingalls Industries in 2011 and bought Orbital ATK in 2018.

Stealth bombers

Northrop is the only U.S. company to have built a stealth bomber. The B-2 Spirit entered service in 1997, and the company won the contract for its successor, the B-21 Raider, in 2015. The B-21 first flew in November 2023. Early production lots have been costly: Northrop recorded a $1.56 billion pre-tax loss provision on B-21 low-rate production in 2023 and a further charge of about $477 million in early 2025. In 2026 the Air Force agreed to raise annual production capacity by about 25%.

How a defense prime earns money

Northrop acts as a systems integrator, managing large supplier networks on programs such as the James Webb Space Telescope. Development work is often cost-reimbursable, which limits risk but caps fees, while production work is often fixed-price, which can earn higher margins when executed well and losses when costs rise. Long programs then generate decades of upgrade and sustainment revenue.

Space and strategic missiles

Orbital ATK gave Northrop large solid rocket motor production, which supports the Sentinel ICBM, Navy strategic missiles and the boosters for NASA's Space Launch System. Sentinel is now Northrop's most scrutinized program: a 2024 Nunn-McCurdy breach put its cost at about $141 billion and triggered a restructure targeted to finish by the end of 2026.

2025-2026 position

Northrop ended 2025 with $41.95 billion of sales, $4.18 billion of net earnings and a record $95.7 billion backlog. By mid-2026 backlog reached about $105 billion and sales guidance rose to $43.75-$44.25 billion. On September 29, 2026, it lost the Navy F/A-XX fighter competition to Boeing, its second straight loss in sixth-generation fighters.

Table of Contents

Northrop Grumman Corporation Key Facts

CompanyNorthrop Grumman Corporation
Annual revenue change+2.2% (FY2024–FY2025)
Financials$42B (FY2025, last reviewed October 2026)
Market Cap$68.7B
FY2025 net income$4.2B
Last reviewedBy Swet Parvadiya, Founder & Editor - October 2026
Founded1994
Founder(s)Jack Northrop, Leroy Grumman
CEOKathy Warden
HeadquartersFalls Church, Virginia, United States
IndustryAerospace
Employees95,000+
TickerNOC

Northrop Grumman Company Profile: Revenue, Business Model & Strategy

"Northrop Grumman holds two of the Pentagon's top nuclear-modernization programs, the B-21 Raider and the Sentinel ICBM, plus a record backlog of about $105 billion. Its challenge is turning that backlog into profit on fixed-price bomber production while Sentinel is restructured and rivals take new fighter franchises."

Why Northrop Grumman Corporation Wins

It owns hard-to-replicate franchises in stealth bombers, ICBMs, solid rocket motors and space systems, backed by a record backlog of about $105 billion in mid-2026.

Northrop Grumman reported 2025 sales of $41.95 billion and net earnings of $4.18 billion, with about 95,000 employees and a record $95.7 billion year-end backlog. Kathy Warden is chair, CEO and president.

Revenue

$42.0B

Founded

1994

Employees

95K+

Market Cap

$68.7B

Author: CorpDigest Research DeskCompany Research

Key Facts

  • Founded: Northrop Grumman Corporation was established in 1994 and is headquartered in Falls Church, Virginia, United States.
  • Revenue: Northrop Grumman Corporation had $42.0B in annual revenue (FY2025).
  • Valuation: Market capitalization of approximately $68.7B.
  • Scale: Northrop Grumman Corporation employs 95,000 people globally.
  • Business Model: Northrop Grumman is a government contractor: the large majority of its sales come from the U.S. government, with the.
  • Competitive Edge: Northrop's edge comes from programs that very few companies can bid on.

How Northrop Grumman Makes Money

Capital Allocation & Scaling Mechanics

Northrop Grumman is a government contractor: the large majority of its sales come from the U.S. government, with the rest from allied governments (often through Foreign Military Sales) and a small commercial space business. Aeronautics Systems builds the B-21 Raider, F-35 center fuselages, the E-2D Hawkeye and uncrewed aircraft such as Global Hawk and Triton. Defense Systems makes tactical weapons, ammunition, rocket motors for missiles and sustainment services. Mission Systems supplies radars (including the F-35's APG-81), electronic warfare, communications, the Army's IBCS air-defense command system and microelectronics. Space Systems builds satellites and payloads, the Sentinel ICBM, solid rocket boosters for NASA's SLS and the Cygnus cargo spacecraft. Revenue comes through a mix of cost-reimbursable development contracts and fixed-price production contracts; fixed-price work earns more when executed well but exposes the company to losses when costs run over, as happened on early B-21 production lots.

Explore Northrop Grumman Corporation In Depth

📅Northrop Grumman Corporation History & Milestones💼How Northrop Grumman Corporation Makes Money📊Northrop Grumman Corporation Revenue & Financials⚔️Northrop Grumman Corporation Competitive Strategy & SWOT👤Northrop Grumman Corporation Founders & Origin Story🏆Northrop Grumman Corporation CEO History & Leadership🤝Northrop Grumman Corporation Acquisitions & Deals

What Is Northrop Grumman Corporation's Growth Strategy?

Northrop is concentrating investment where it already holds franchise positions: B-21 production capacity (more than $5 billion invested in digital engineering and manufacturing), the Sentinel ICBM, solid rocket motors and munitions, missile-defense systems such as IBCS and the Glide Phase Interceptor, and classified and missile-tracking space constellations. International sales of IBCS, E-2D, Triton and munitions to allies are another growth lever.

How Much Revenue Does Northrop Grumman Generate?

Sales grew from $36.6 billion in 2022 to $41.95 billion in 2025, with 2025 net earnings of $4.18 billion and free cash flow of $3.3 billion, up 26% year over year. Earnings have been uneven because of program charges: net earnings fell to $2.06 billion in 2023 after a $1.56 billion pre-tax loss provision on B-21 low-rate production, and the company booked another B-21 charge of about $477 million in early 2025. Backlog reached a record $95.7 billion at the end of 2025 on more than $46 billion of net awards. In Q2 2026 sales rose 5% to $10.9 billion, backlog hit about $105 billion, and full-year 2026 guidance was raised to $43.75-$44.25 billion in sales and $3.1-$3.5 billion of free cash flow. Northrop Grumman Corporation is a colossal American multinational aerospace and defense technology company, sustaining a massive market valuation typically exceeding $65 billion.

Financial MetricEstimated Value
Market Capitalization$68.7B
Employee Count95,000 +
Latest Annual Revenue$42.0B (FY2025)

Historical Revenue Chart

Northrop Grumman Corporation Annual Revenue History

All figures in USD.

Fiscal YearRevenue FigureYoY Change
FY2016$24.7BN/A
FY2017$26B+5.3%
FY2018$30.1B+15.7%
FY2019$33.8B+12.4%
FY2020$36.8B+8.7%
FY2021$35.7B-3.1%
FY2022$36.6B+2.6%
FY2023$39.3B+7.3%
FY2024$41B+4.4%
FY2025$42B+2.2%

The source for each year is listed on the Northrop Grumman Corporation financials page.

Core Strength

Northrop Grumman sits on strategic programs in stealth, space, nuclear deterrence, sensors, and classified systems.

Key Weakness

Large fixed-price and development programs can pressure margins when costs, schedules, or suppliers move against the plan.

Deep Dive into Northrop Grumman Corporation SWOT Analysis

Who Are Northrop Grumman Corporation's Main Competitors?

Northrop Grumman operates in the absolutely massive, highly consolidated US defense oligopoly, fiercely competing alongside Lockheed Martin, Boeing, and General Dynamics. Northrop's absolute superpower is highly classified, cutting-edge strategic deterrence and space systems. It essentially holds a monopoly on the US nuclear triad modernization, possessing the absolute sole contracts to build the new B-21 stealth bomber and the Sentinel ICBM system. While Lockheed dominates tactical fighter jets (F-35), Northrop dominates deep-strike stealth and military space architecture (building the James Webb Space Telescope). Its primary existential threat is the massive cost overruns associated with highly complex, fixed-price government contracts during inflationary periods.

What Is Northrop Grumman Corporation's Full Historical Timeline?

Historical Timeline & Strategic Pivots

Key Milestones

1929 - Grumman Aircraft Founded

Leroy Grumman and partners founded Grumman Aircraft Engineering Corporation on Long Island in December 1929 and soon began building aircraft for the U.S. Navy, a relationship that defined the company for decades.

1939 - Northrop Aircraft Incorporated Founded

Jack Northrop established Northrop Aircraft, Incorporated in Hawthorne, California. From the outset the company pursued advanced aerodynamic designs, including the flying wing concept that would become Northrop's defining technical obsession and ultimate legacy.

1943 - F6F Hellcat Enters Service

Grumman's F6F Hellcat carrier fighter entered operational service with the U.S. Navy and quickly established dominance over Japanese aircraft in the Pacific. The Hellcat achieved a kill ratio exceeding 19 to 1 and is credited by naval historians as the decisive factor in establishing American air superiority over the Pacific theater.

1969 - Grumman Lunar Module Lands on the Moon

On July 20, 1969, the Grumman-built Lunar Module Eagle carried Neil Armstrong and Buzz Aldrin from lunar orbit to the surface of the Moon. Grumman would go on to build the Lunar Module for all six successful Apollo Moon landings, one of the most consequential engineering achievements in history.

1981 - B-2 Spirit Program Initiated

Northrop Corporation won the Advanced Technology Bomber competition, securing the contract to develop what would become the B-2 Spirit stealth bomber. The selection validated Jack Northrop's flying wing philosophy three decades after he had been forced to scrap his YB-49 prototypes.

1994 - Northrop Acquires Grumman

Northrop Corporation completed its acquisition of Grumman Corporation for approximately $2.1 billion, forming Northrop Grumman Corporation. The merger created a defense contractor of sufficient scale to compete for the largest Pentagon programs in a consolidating industry.

1997 - B-2 Spirit Enters Service

The B-2 Spirit stealth bomber achieved initial operational capability with the U.S. Air Force's 509th Bomb Wing at Whiteman Air Force Base, Missouri. The aircraft represented the culmination of Northrop's flying wing vision and established the company's position in low-observable aircraft design.

2002 - TRW Space and Electronics Acquired

Northrop Grumman completed the $7.8 billion acquisition of TRW's space and electronics businesses, adding satellite manufacturing, space electronics, and ballistic missile defense capabilities. This acquisition created the foundation of what is now the Space Systems segment.

2011 - Huntington Ingalls Industries Spun Off

Northrop Grumman completed the spinoff of its shipbuilding operations Newport News Shipbuilding and Ingalls Shipbuilding as independent publicly traded company Huntington Ingalls Industries. The divestiture sharpened Northrop's focus on higher-technology, higher-margin programs and significantly improved return on invested capital.

2018 - Orbital ATK Acquired for $9.2 Billion

Northrop Grumman completed its acquisition of Orbital ATK, a manufacturer of solid rocket motors, small satellites, and the Cygnus commercial cargo spacecraft, for $9.2 billion. The acquisition created a vertically integrated space and propulsion enterprise and made Space Systems the company's largest revenue segment.

2021 - James Webb Space Telescope Launched

The James Webb Space Telescope, for which Northrop Grumman built the optical telescope element and the tennis-court-sized deployable sunshield, launched from Kourou, French Guiana on December 25, 2021. The successful multi-week deployment sequence validated one of the most technically demanding single deliverables in the company's history.

2022 - B-21 Raider Unveiled

Northrop Grumman unveiled the B-21 Raider stealth bomber at its Palmdale, California production facility on December 2, 2022, the first public appearance of the aircraft. The B-21's first flight followed in November 2023, marking the formal beginning of the flight test program that would lead to production certification.

2024 - Sentinel Nunn-McCurdy Breach

The Pentagon reported a critical Nunn-McCurdy cost breach on the Sentinel ICBM and, in July 2024, certified the program to continue under a restructure, with an estimated cost of about $141 billion.

2025 - Record Backlog

Northrop Grumman ended 2025 with $41.95 billion of sales and a record $95.7 billion backlog after more than $46 billion of net awards.

2026 - B-21 Production Capacity Raised

The Department of the Air Force and Northrop Grumman agreed to raise annual B-21 Raider production capacity by about 25%, with the first aircraft due at Ellsworth AFB in 2027. In September, Boeing beat Northrop for the Navy F/A-XX fighter.

Risks & Weaknesses

Analytical Assessment

Primary Risk Factor

Fixed-price execution on B-21 production, the cost and schedule of the restructured Sentinel program, and missed new-start competitions such as F/A-XX.

Risk assessment based on public filings, SWOT analysis, and verified industry data. Not financial advice.

How Did Northrop Grumman Start and Grow?

Established

1994

Fiscal Revenue (FY2025)

$42.0B

Workforce

95K+

HQ Location

Falls Church, Virginia, United States

Key Turning Point

: The Strategic Shift That Created a Behemoth

Facing a shrinking defense budget after the Soviet collapse, Northrop Corporation merged with Grumman Corporation to create the scale needed to survive industry consolidation. The merger combined Northrop's stealth bomber expertise with Grumman's naval aviation and electronic warfare capabilities, creating a diversified defense company from two mid-sized specialists.

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Explore Northrop Grumman In Depth

Detailed research across every dimension of Northrop Grumman — history, financials, leadership, and strategy.

Company History

Northrop Grumman is one of the largest U.S. defense contractors, headquartered in Falls Church, Virginia, with about 95,000 employees and more than 550 facilities.

Full Northrop Grumman history →

Revenue & Financials

Northrop Grumman had $42B in revenue for fiscal year 2025. Data covers 10 fiscal years. Market capitalization stands at approximately $69B.

Northrop Grumman financials →

Founders

Northrop Grumman was founded by Jack Northrop, Leroy Grumman in 1994. Explore each founder's background, motivations, and their role in building the company.

Northrop Grumman founders →

CEO & Leadership

Northrop Grumman is currently led by Kathy Warden. Explore the full CEO history — leadership transitions, tenures, and the strategic decisions of each chief executive.

Northrop Grumman CEO history →

Business Model

Northrop Grumman is a government contractor: the large majority of its sales come from the U.S. government, with the rest from allied governments (often through Foreign Military Sales) and a small commercial space…

How Northrop Grumman makes money →

Acquisitions

Northrop Grumman has completed 4 documented acquisitions. Explore the full acquisition history and strategic rationale behind each deal.

Northrop Grumman acquisitions →

Competitive Strategy

Northrop is concentrating investment where it already holds franchise positions: B-21 production capacity (more than $5 billion invested in digital engineering and manufacturing), the Sentinel ICBM, solid rocket motors…

Northrop Grumman strategy →

CorpDigest Research Desk

 Research Profile

Our analysts compile business strategy profiles from public financial filings, press releases, and analyst reports. Each profile is reviewed for accuracy before publication by our editorial desk and updated on a rolling basis.

About the Author →Our Methodology →

Frequently Asked Questions About Northrop Grumman

How does Northrop Grumman make money?

Northrop Grumman earns almost all of its revenue from government contracts, mainly with the U.S. Department of Defense, intelligence agencies and NASA, plus allied governments. It is paid to develop, build and sustain systems such as the B-21 Raider bomber, the Sentinel ICBM, F-35 center fuselages and radars, satellites, solid rocket motors and missile-defense networks. 2025 sales were $41.95 billion.

Who owns Northrop Grumman?

Northrop Grumman is a publicly traded company listed on the NYSE as NOC, so it is owned by its shareholders. Most shares are held by institutional investors such as index and mutual-fund managers. No single owner controls the company.

Who is the CEO of Northrop Grumman?

Kathy J. Warden is chair, chief executive officer and president. She became CEO in January 2019 and chair later that year, after serving as president and chief operating officer. Before Northrop she held roles at General Dynamics, Veridian and GE.

Who are Northrop Grumman's main competitors?

Its main competitors are Lockheed Martin, RTX, Boeing, General Dynamics and L3Harris, with SpaceX and newer defense-tech firms such as Anduril competing in space and autonomous systems. Boeing beat Northrop for both of the newest U.S. crewed fighter programs, the Air Force F-47 (2025) and the Navy F/A-XX (2026).

What was Northrop Grumman's revenue in 2025?

Northrop Grumman reported 2025 sales of $41.95 billion, up 2.2% from $41.03 billion in 2024, with net earnings of $4.18 billion ($29.08 per diluted share) and free cash flow of $3.3 billion. For 2026 the company guided to sales of $43.75-$44.25 billion after raising its outlook in July 2026.

When was Northrop Grumman formed?

Northrop Grumman was formed in 1994 when Northrop Corporation, founded by Jack Northrop in 1939, acquired Grumman Corporation, founded by Leroy Grumman in 1929, for about $2.1 billion after a bidding contest with Martin Marietta.

What is the B-21 Raider?

The B-21 Raider is the U.S. Air Force's new stealth bomber, built by Northrop Grumman in Palmdale, California. It was unveiled in December 2022, first flew in November 2023, and is in low-rate production. In 2026 the Air Force agreed to raise annual production capacity by about 25%, with the first aircraft scheduled to reach Ellsworth AFB in 2027.

What are Northrop Grumman's business segments?

Northrop Grumman reports four segments: Aeronautics Systems (B-21, F-35 fuselages, E-2D, uncrewed aircraft), Defense Systems (weapons, ammunition, missile rocket motors and sustainment), Mission Systems (radars, sensors, electronic warfare, IBCS and communications) and Space Systems (satellites, Sentinel, SLS boosters and Cygnus).

Where is Northrop Grumman headquartered and how many employees does it have?

Northrop Grumman is headquartered in Falls Church, Virginia. It had about 95,000 employees at the end of 2025 and operates more than 550 facilities across all 50 U.S. states and over 25 countries.

Who built the James Webb Space Telescope?

Northrop Grumman served as the primary, lead contractor for NASA to design and build the James Webb Space Telescope.

Analysis: How Northrop Grumman Corporation Makes Money

Deep dive into the Northrop Grumman Corporation business model, revenue streams, and strategic moats in 2026.

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    Financial data on this page is sourced from SEC EDGAR filings, official earnings releases, and verified press statements. Revenue figures are reviewed and updated periodically. Read our full data methodology ->

    Primary source: www.sec.gov/Archives/edgar/data/1133421/000113342126000003/n

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    SEC filings & public records methodology
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