Northrop Grumman (NYSE:NOC – Get Free Report) announced its quarterly earnings results on Tuesday. The aerospace company reported $7.89 EPS for the quarter, beating the consensus estimate of $7.18 by $0.71, FiscalAI reports. The business had revenue of $11.12 billion for the quarter, compared to analyst estimates of $11.14 billion. Northrop Grumman had a return on equity of 24.25% and a net margin of 10.48%. The company’s quarterly revenue was up 6.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $7.67 EPS.
Here are the key takeaways from Northrop Grumman’s conference call:
- Strong demand and execution: Third-quarter sales rose 7% year over year, book-to-bill was 1.5, and backlog increased 20% to a record $110 billion. Segment operating margin reached 12.1%.
- Northrop Grumman raised its 2026 segment operating income guidance by $65 million and EPS guidance by $0.70, while maintaining its $3.1 billion–$3.5 billion adjusted free cash flow outlook.
- Management expects 2027 sales growth of 5%–7% across all four segments, with further acceleration beyond 2027 driven by B-21, Sentinel, national security space, weapons production, and international sales.
- The company plans substantial capacity investments, including approximately $2.1 billion of 2027 capital expenditures, to support B-21 acceleration and missile and munitions production; management expects stronger execution and working-capital discipline to offset the higher spending.
- The outlook remains exposed to execution and timing risks, including B-21 fixed-price production losses, continuing-resolution funding uncertainty, international contract timing, and potentially lower Mission Systems margins after an exceptionally strong 2026.
Northrop Grumman Price Performance
NOC stock opened at $534.78 on Wednesday. The company has a current ratio of 1.17, a quick ratio of 1.06 and a debt-to-equity ratio of 0.81. The company has a market capitalization of $75.95 billion, a PE ratio of 16.99, a P/E/G ratio of 2.99 and a beta of -0.11. Northrop Grumman has a 12-month low of $470.06 and a 12-month high of $774.00. The business’s fifty day moving average price is $523.03 and its 200 day moving average price is $550.14.
Northrop Grumman Announces Dividend
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 16th. Investors of record on Monday, August 31st were issued a $2.47 dividend. This represents a $9.88 annualized dividend and a dividend yield of 1.8%. The ex-dividend date was Monday, August 31st. Northrop Grumman’s payout ratio is currently 31.39%.
Wall Street Analyst Weigh In
Several analysts recently issued reports on NOC shares. Sanford C. Bernstein reduced their price objective on shares of Northrop Grumman from $620.00 to $556.00 and set a “market perform” rating on the stock in a report on Wednesday, October 14th. BNP Paribas Exane lowered their target price on shares of Northrop Grumman from $640.00 to $540.00 and set an “outperform” rating for the company in a research note on Tuesday, October 6th. Morgan Stanley set a $745.00 price target on shares of Northrop Grumman and gave the company an “overweight” rating in a research report on Wednesday, July 15th. Royal Bank Of Canada cut shares of Northrop Grumman from an “outperform” rating to a “sector perform” rating and dropped their price target for the company from $640.00 to $525.00 in a research report on Friday, October 2nd. Finally, TD Cowen reduced their price target on shares of Northrop Grumman from $590.00 to $540.00 and set a “hold” rating on the stock in a research note on Friday, October 9th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $640.83.
View Our Latest Stock Report on NOC
Insider Transactions at Northrop Grumman
In related news, Director Mark Welsh, III sold 95 shares of the firm’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $547.53, for a total transaction of $52,015.35. Following the completion of the transaction, the director directly owned 4,393 shares in the company, valued at $2,405,299.29. This trade represents a 2.12% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.21% of the company’s stock.
Northrop Grumman News Roundup
Here are the key news stories impacting Northrop Grumman this week:
- Positive Sentiment: Q3 earnings beat expectations: Adjusted earnings were $7.89 per diluted share, ahead of the roughly $7.18–$7.22 consensus, while sales rose 6.7% year over year to $11.12 billion, broadly matching estimates. Revenue increased across all four business segments, including 14% growth in aeronautics and 12% growth in defense. Northrop Grumman Q3 earnings report
- Positive Sentiment: Guidance was raised: Management increased its 2026 midpoint for adjusted earnings per share to approximately $29.55 and raised its segment operating-income outlook by $65 million, while maintaining full-year sales guidance of $43.75 billion to $44.25 billion. Northrop lifts 2026 profit forecast
- Positive Sentiment: Record backlog supports visibility: Backlog reached approximately $109.6 billion, up about 20% year over year, with a 1.5-times book-to-bill ratio. Management cited unprecedented demand for military technology, while its preliminary 2027 outlook calls for 5%–7% sales growth. Northrop Grumman long-term investor takeaways
- Positive Sentiment: Analyst support added to the bullish reaction: Bank of America analyst Ronald Epstein reiterated a Buy rating and maintained a $750 price target following the earnings beat, backlog growth and raised outlook. Bank of America reiterates Buy rating
- Neutral Sentiment: Investors continue to monitor political and budget risks for defense contractors, including concerns that a potential Democratic congressional sweep could affect certain weapons programs. These concerns were outweighed by NOC’s current operating results and demand outlook. Defense stocks and election risk
- Negative Sentiment: Some insider-trading data showed sales and no reported purchases over the past six months, a secondary caution for investors, although the transactions were not the primary driver of the market reaction.
Northrop Grumman Company Profile
Northrop Grumman Corporation (NYSE:NOC) is a global aerospace and defense company that develops and produces systems for government and commercial customers, with the U.S. government representing its primary customer base. The company operates across aerospace, defense, space, cybersecurity and advanced technology markets.
Its products and services include military aircraft and autonomous systems, space systems and satellites, missile defense technologies, command-and-control systems, cyber solutions, sensors, communications networks and other mission-critical systems.
Read More
- Five stocks we like better than Northrop Grumman
- Cleared For Takeoff: Boeing’s 737 MAX 10 Approval Sets Up a Major Cash Flow Recovery
- Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over
- Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling?
- Halliburton Gains Traction: Multiyear Upcycle Ahead
Receive News & Ratings for Northrop Grumman Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Northrop Grumman and related companies with MarketBeat.com's FREE daily email newsletter.
