Results of operations

Summary

• Third quarter 2026 sales increased 11% to $20.7 billion from $18.6 billion in the third quarter of 2025, with growth in each of the four business segments.
• Net earnings increased 14% to $1.8 billion, or $7.97 per share, compared to $1.6 billion, or $6.95 per share.
• Backlog grew 27% since the second quarter of 2026 to a record $292.0 billion, including $52.5 billion associated with the multi-year award to produce PAC-3 MSE interceptors.
• Missiles and Fire Control sales rose 24% to $4,501 million on production ramps of PAC-3, THAAD, GMLRS and PrSM, and Missiles and Fire Control backlog grew to $142,517 million from $46,650 million at Dec. 31, 2025.
• Space segment sales increased 4% to $3,485 million on higher Fleet Ballistic Missile and Next Generation Interceptor volume, partially offset by $115 million lower national security space sales from the OPIR mission lifecycle, while operating profit was flat at $331 million.
• The company raised its 2026 outlook, with sales of approximately $80,000 to $82,000 million, diluted EPS of approximately $30.35 to $30.75, and free cash flow of approximately $7,800 to $8,000 million.

Why it mattersThe filing discloses munition production ramps driving Missiles and Fire Control growth and a record backlog boosted by the PAC-3 MSE multi-year award. It also flags that F-35 Lot 20 costs have begun exceeding contractual authorization and funding.