Northrop Grumman (NYSE:NOC) Announces Earnings Results

Northrop Grumman (NYSE:NOC) released its quarterly earnings data on Tuesday. The aerospace company reported $7.89 EPS for the quarter, topping 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%.

Northrop Grumman Stock Down 1.7%

Shares of Northrop Grumman stock opened at $510.87 on Tuesday. The business has a 50-day moving average of $523.85 and a 200-day moving average of $551.28. Northrop Grumman has a 1-year low of $470.06 and a 1-year high of $774.00. The company has a market capitalization of $72.56 billion, a PE ratio of 16.23, a P/E/G ratio of 3.05 and a beta of -0.11. The company has a debt-to-equity ratio of 0.81, a current ratio of 1.17 and a quick ratio of 1.06.

Northrop Grumman Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 16th. Shareholders of record on Monday, August 31st were paid a dividend of $2.47 per share. This represents a $9.88 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date was Monday, August 31st. Northrop Grumman’s payout ratio is currently 31.39%.

Northrop Grumman News Summary

Here are the key news stories impacting Northrop Grumman this week:

• Positive Sentiment: Profit and outlook exceeded expectations. Third-quarter diluted EPS was $7.89, above the approximately $7.18–$7.19 analyst consensus. Northrop also raised its 2026 midpoint guidance for segment operating income by $65 million and adjusted EPS by $0.70, now targeting $29.35–$29.75. The company’s 2027 outlook reportedly calls for additional growth. Northrop Grumman’s 2027 Earnings Outlook Calls for More Growth
• Positive Sentiment: Demand and cash generation remained strong. Third-quarter sales increased 7% year over year to $11.12 billion, net awards totaled $16.4 billion, and backlog reached a record $109.6 billion. Operating cash flow rose 12% to $1.745 billion, supporting the case for durable defense-sector demand. Northrop lifts 2026 profit forecast on strong defense demand, record backlog
• Neutral Sentiment: Investor focus now shifts to management commentary. Northrop scheduled an earnings call to discuss the results, including its updated 2026 guidance and longer-term growth outlook. Northrop Grumman Releases Third Quarter 2026 Financial Results
• Negative Sentiment: Revenue and margins were less impressive than the EPS headline. Sales were slightly below the $11.2 billion consensus, while operating income rose only 2% despite 7% sales growth, implying pressure on operating margins. Reports also note that insiders recorded sales rather than purchases in recent months, which may add to investor caution.

Insider Activity at Northrop Grumman

In other news, Director Mark Welsh, III sold 95 shares of the firm’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $547.53, for a total transaction of $52,015.35. Following the transaction, the director directly owned 4,393 shares of the company’s stock, valued at approximately $2,405,299.29. This trade represents a 2.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.21% of the company’s stock.

Analyst Upgrades and Downgrades

NOC has been the topic of several recent research reports. The Goldman Sachs Group boosted their target price on Northrop Grumman from $533.00 to $538.00 and gave the stock a “neutral” rating in a report on Monday, July 27th. BNP Paribas Exane cut their price target on shares of Northrop Grumman from $640.00 to $540.00 and set an “outperform” rating on the stock in a research note on Tuesday, October 6th. Citigroup boosted their price target on shares of Northrop Grumman from $617.00 to $667.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Robert W. Baird set a $500.00 price objective on shares of Northrop Grumman in a research report on Wednesday, July 22nd. Finally, Sanford C. Bernstein cut their target price on Northrop Grumman from $620.00 to $556.00 and set a “market perform” rating on the stock in a research report on Wednesday, October 14th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $641.91.

About Northrop Grumman

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.