Northrop Grumman (NYSE:NOC) Issues Earnings Results

Northrop Grumman (NYSE:NOC) issued its earnings results on Tuesday. The aerospace company reported $7.23 EPS for the quarter, topping analysts’ consensus estimates of $6.97 by $0.26, Zacks reports. The business had revenue of $11.71 billion for the quarter, compared to analyst estimates of $11.61 billion. Northrop Grumman had a net margin of 9.97% and a return on equity of 25.57%. The company’s quarterly revenue was up 9.6% compared to the same quarter last year. During the same period last year, the company posted $6.39 earnings per share. Northrop Grumman updated its FY 2026 guidance to 27.400-27.900 EPS.

Here are the key takeaways from Northrop Grumman’s conference call:

• 2025 results beat expectations — sales accelerated in Q4, the company finished with a record backlog of over $95 billion (driven by ~$46 billion in 2025 awards) and generated $3.3 billion of free cash flow (up 26%).
• 2026 guidance is consistent with October — sales $43.5–44.0B (mid-single-digit growth), adjusted EPS $27.40–27.90, segment operating income $4.85–5.0B, and free cash flow $3.1–3.5B, while CapEx is being increased to $1.65B to support growth.
• The company is investing to expand industrial capacity — notably tripling tactical solid rocket motor production at its ABL site by early 2027 and planning a threefold increase at Elkton by 2030 to meet rising munitions demand.
• International momentum is strong — international sales rose ~20% in 2025, Northrop reports >20 countries have requested IBCS, and management expects multiple international awards and continued export/partnership growth into 2026–27.
• Management is negotiating a potential B-21 production acceleration that could require $2–3 billion of multi-year investment and would primarily deliver incremental revenue and returns in 2027–2029, with limited 2026 impact and execution risk to monitor.

Northrop Grumman Price Performance

Shares of NOC opened at $689.05 on Thursday. The company has a 50 day moving average of $594.57 and a two-hundred day moving average of $586.47. The company has a quick ratio of 0.98, a current ratio of 1.10 and a debt-to-equity ratio of 0.91. Northrop Grumman has a twelve month low of $426.24 and a twelve month high of $690.74. The company has a market cap of $98.34 billion, a price-to-earnings ratio of 24.79, a price-to-earnings-growth ratio of 5.73 and a beta of 0.05.

Northrop Grumman Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, December 17th. Investors of record on Monday, December 1st were given a dividend of $2.31 per share. The ex-dividend date of this dividend was Monday, December 1st. This represents a $9.24 dividend on an annualized basis and a yield of 1.3%. Northrop Grumman’s dividend payout ratio is presently 33.24%.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on NOC. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Northrop Grumman in a research report on Wednesday, December 24th. Vertical Research reaffirmed a “hold” rating and issued a $688.00 price objective on shares of Northrop Grumman in a research note on Tuesday. Bank of America increased their target price on shares of Northrop Grumman from $685.00 to $750.00 and gave the stock a “buy” rating in a report on Wednesday. Royal Bank Of Canada raised their target price on shares of Northrop Grumman from $715.00 to $750.00 and gave the company an “outperform” rating in a research report on Wednesday. Finally, Alembic Global Advisors raised shares of Northrop Grumman from a “neutral” rating to an “overweight” rating and set a $662.00 price target for the company in a research report on Monday, December 15th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, Northrop Grumman has an average rating of “Moderate Buy” and an average price target of $685.11.

Trending Headlines about Northrop Grumman

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

• Positive Sentiment: Q4 results beat estimates — NOC reported $7.23 EPS vs. consensus ~ $6.97 and $11.71B revenue (+9.6% YoY); management highlighted a record backlog (~$95.7B) and strong free cash flow, supporting dividend/buyback capacity. Northrop Grumman posts higher quarterly profit
• Positive Sentiment: Technical and momentum confirmation — MarketBeat and trading signals showed a breakout/buy signal and institutional inflows that reinforced the rally and helped push shares to new highs. This technical follow?through is supporting near?term upside. Northrop Grumman Flashed a Buy Signal
• Positive Sentiment: Analysts lifting targets — Multiple firms (Citigroup, BTIG, Bank of America and others) raised price targets and reiterated buy ratings after the quarter, adding upward catalyst from the sell?side. Benzinga coverage of analyst moves
• Neutral Sentiment: Strategic contract momentum — Coverage notes new contracts and global partnerships that expand NOC’s backlog and program exposure (space, aeronautics). These are longer?lead revenue drivers rather than immediate EPS shocks. Northrop Grumman Builds Momentum
• Neutral Sentiment: Positioned as an enabler in adjacent secular themes — Analyst pieces flag NOC among firms tied to quantum/advanced tech supply chains, a potential medium?term growth tailwind but not an immediate earnings driver. Zacks: Quantum enablers
• Negative Sentiment: Cautious FY?2026 guidance — Management set EPS guidance of $27.40–$27.90 and revenue guidance slightly below consensus, which some investors view as conservative relative to the strong quarter and backlog. That capped the upside for some traders. Benzinga: Q4 beat, 2026 outlook disappoints
• Negative Sentiment: Buybacks paused to speed B?21 production — Northrop said it may pause repurchases to accelerate B?21 work; that reduces near?term shareholder return visibility even if it improves long?term program execution. DefenseDaily: Pausing buybacks

Insiders Place Their Bets

In related news, Director Mark A. Welsh III sold 97 shares of the business’s stock in a transaction on Monday, November 24th. The stock was sold at an average price of $564.08, for a total transaction of $54,715.76. Following the transaction, the director directly owned 4,281 shares in the company, valued at $2,414,826.48. The trade was a 2.22% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Kathy J. Warden sold 3,000 shares of the stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $615.00, for a total value of $1,845,000.00. Following the completion of the sale, the chief executive officer owned 191,602 shares of the company’s stock, valued at approximately $117,835,230. This trade represents a 1.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 10,097 shares of company stock valued at $6,099,716 in the last three months. Insiders own 0.23% of the company’s stock.

Hedge Funds Weigh In On Northrop Grumman

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NOC. Wexford Capital LP purchased a new stake in Northrop Grumman during the 3rd quarter valued at about $33,000. Banque Cantonale Vaudoise purchased a new stake in Northrop Grumman in the third quarter valued at approximately $43,000. Osterweis Capital Management Inc. acquired a new position in Northrop Grumman in the 2nd quarter worth approximately $59,000. Quarry LP acquired a new position in Northrop Grumman in the 3rd quarter worth approximately $85,000. Finally, Wealth Watch Advisors INC purchased a new position in Northrop Grumman during the 3rd quarter worth approximately $87,000. Hedge funds and other institutional investors own 83.40% of the company’s stock.

Northrop Grumman Company Profile

Northrop Grumman Corporation (NYSE: NOC) is a leading U.S.-based aerospace and defense company that designs, builds and sustains advanced systems, products and technologies for government and commercial customers. Formed through the combination of Northrop and Grumman businesses in the 1990s, the company’s portfolio spans manned and unmanned aircraft, space systems, missile defense, radar and sensor systems, and integrated command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) solutions.

The company’s work includes airframe and platform manufacturing, space hardware and satellite systems, advanced mission systems and cybersecurity services, as well as logistics, sustainment and modernization programs.