# Defense Systems drives most of Northrop Grumman's backlog growth this year Through September, Defense Systems accounts for about 62% of Northrop Grumman's backlog increase since the end of 2025. Published 2026-10-20 by TGOs. Canonical: https://tgos.io/news/2026/10/20/defense-systems-drives-most-of-northrop-grummans-backlog-growth/ Northrop Grumman ended September 2026 with a $109.6 billion backlog.[1] That was up 15% from the end of 2025.[1] The company booked $16.4 billion in third-quarter net awards.[1] Defense Systems backlog rose 31% to $36.5 billion from December 31, 2025 to September 30, 2026.[1] The segment accounted for about 62% of the company's increase, by our calculation.[1] Third-quarter awards included $2.0 billion for Sentinel.[1] Defense Systems sales rose 12% from the third quarter of 2025.[1] Northrop attributed the increase primarily to Sentinel's ramp-up, higher volume on the Guided Multiple Launch Rocket System Extended Range program tied to award timing, and higher tactical solid rocket motor volume.[1] ## Why it matters Defense Systems' third-quarter operating margin fell to 10.8% from 11.4% a year earlier, primarily because of a shift toward more cost-type contract content, Northrop said.[1] ## Sources 1. Northrop Grumman Exhibit 99, Third Quarter 2026 Financial Results, October 20, 2026