Warden discussed the business during Northrop Grumman’s second-quarter 2026 earnings call on July 21. She said growth had slowed this year, particularly in restricted microelectronics programs, because of program life-cycle dynamics.
“We are experiencing some program life cycle dynamics, so growth in that business has been lower this year,” Warden said. She said the comparison followed strong growth in the previous year.
Northrop Grumman uses its microelectronics across several major defense businesses. Warden said the technology is vertically integrated into products in Mission Systems, Space and Aeronautics, as well as weapons systems in Defense Systems.
“This is an important enabler, not only to our products,” Warden said. She added that the company also sells the technology to customers that rely on it for secure processing across a range of product lines.
The structure gives Northrop Grumman an internal source of microelectronics for major defense platforms and systems. It also supports an external business serving government and commercial customers.
Warden said the underlying demand environment remained “robust.” She described the weaker 2026 growth rate as a temporary year-over-year comparison rather than a broader decline in demand.
The microelectronics business sits within Northrop Grumman’s Mission Systems portfolio. Chief Financial Officer John Greene said Mission Systems sales rose 3% in the second quarter.
Higher volumes in marine programs, F-35 sensors and restricted airborne radar work supported the increase. The segment posted an operating margin of 15.4% in the quarter.
Northrop Grumman maintained its 2026 Mission Systems sales outlook in the high-$12 billion range. The company also raised its full-year operating margin forecast for the segment to about 15%.
Warden’s comments show that Northrop Grumman continues to view secure microelectronics as a core enabling technology across its defense portfolio. The company expects demand to remain firm even as individual programs move through different development and production cycles.
