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Northrop Grumman and homebuilders signal a split economy in 2026
Northrop Grumman reported Q2 EPS of $7.68, and D.R. Horton’s outlook is weighed by a cooling housing market, with homebuilders cutting prices in recent months.
As earnings season moves through the second week, results from several large companies are offering a window into how investors may see the rest of 2026. MarketBeat Ratings highlights four firms that reported on July 21, including defense contractor Northrop Grumman, homebuilder D.R. Horton, and financials firms Capital One and Charles Schwab, as investors look beyond past-quarter numbers to forward guidance.
In defense, Northrop Grumman delivered a Q2 double beat, posting EPS of $7.68 versus a $6.82 consensus estimate, and revenue of $10.88 billion, up 5.1% year over year and above the $10.8 billion expectation. The company also said it received net awards totaling $20 billion during the quarter, lifting backlog to a record $104.7 billion, and raised 2026 sales guidance to $43.75 billion to $44.25 billion with full-year adjusted EPS guidance of $28.60 to $29.10.
The earnings picture is more mixed in housing. MarketBeat Ratings points to D.R. Horton, noting shares were up about 3.7% year to date ahead of its fiscal Q3 earnings release, but have fallen roughly 3% year to date and nearly 15% from a three-month high, as the housing market appears stagnant or cooling.
According to the report’s cited House Market Index survey, homebuilders cut prices by 37% in July, 35% in June, and 32% in May, a pattern the outlet flags as bearish for homebuilders as investors consider how economic conditions may diverge across sectors in the second half of 2026.