These 4 Earnings Reports Expose the Market’s Growing Economic Divide

Summary

As the second week of earnings season draws to a close, companies across several sectors are providing clues about what investors can expect for the remainder of the year. Of course, quarterly earnings and revenues are rear-facing metrics. But when combined with recent financial performances and full-year guidance, notable trends begin to emerge. Four companies—ranging from defense contractors to homebuilders to big banks—that reported earnings on Tuesday, July 21, are providing a glimpse into what the market may hold in the second half of 2026.Get Capital One Financial alerts:Sign Up Northrop Grumman’s Record Backlog Reinforces the Defense Spending StoryNorthrop Grumman TodayNOCNorthrop Grumman$542.09 +8.61 (+1.61%) As of 07/24/2026 03:59 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$479.02▼$774.00Dividend Yield1.82%P/E Ratio17.22Price Target$655.24 The energy sector hasn’t been the only beneficiary of the war with Iran. The ongoing war with Iran has also kept defense spending in focus, and the administration’s 2027 budget request proposes $1.5 trillion in total defense resources, although Congress has not enacted that amount. Northrop Grumman's NYSE: NOC Q2 earnings double beat offered further evidence of strong global demand for defense systems. Earnings per share (EPS) of $7.68 topped the analyst consensus of $6.82, while quarterly revenue of $10.88 billion—a 5.1% year-over-year (YOY) increase—surpassed expectations of $10.8 billion. But the biggest takeaway was that, with no end in sight for the war in Iran, Q2 serves as a precursor to what is likely to be a protracted global conflict. Northrop announced that it received net awards totaling $20 billion during the quarter, pushing its backlog to a record $104.7 billion. As a result, the company raised its 2026 sales guidance to $43.75 billion to $44.25 billion, with full-year adjusted EPS guidance of $28.60 to $29.10. Defense contractors have been pivotal in industria...