Northrop Grumman (NYSE:NOC – Get Free Report) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 27.400-27.900 for the period, compared to the consensus estimate of 28.010. The company issued revenue guidance of $43.5 billion-$44.0 billion, compared to the consensus revenue estimate of $43.9 billion.
Wall Street Analysts Forecast Growth
A number of research analysts recently weighed in on the company. Royal Bank Of Canada upped their price target on Northrop Grumman from $715.00 to $750.00 and gave the stock an “outperform” rating in a research note on Wednesday, January 28th. Jefferies Financial Group upped their price target on Northrop Grumman from $690.00 to $710.00 and gave the stock a “hold” rating in a research note on Thursday, April 9th. Bank of America upped their price target on Northrop Grumman from $685.00 to $750.00 and gave the stock a “buy” rating in a research note on Wednesday, January 28th. UBS Group upped their price target on Northrop Grumman from $777.00 to $778.00 and gave the stock a “buy” rating in a research note on Wednesday, January 28th. Finally, Vertical Research reaffirmed a “hold” rating and set a $688.00 price target on shares of Northrop Grumman in a research note on Tuesday, January 27th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat.com, Northrop Grumman currently has a consensus rating of “Moderate Buy” and a consensus price target of $718.53.
Northrop Grumman Stock Performance
Northrop Grumman (NYSE:NOC – Get Free Report) last issued its quarterly earnings data on Tuesday, April 21st. The aerospace company reported $6.14 EPS for the quarter, topping the consensus estimate of $6.06 by $0.08. The firm had revenue of $9.88 billion during the quarter, compared to the consensus estimate of $9.75 billion. Northrop Grumman had a return on equity of 24.72% and a net margin of 10.80%.The company’s quarterly revenue was up 4.4% compared to the same quarter last year. During the same period in the prior year, the business posted $6.06 earnings per share. Northrop Grumman has set its FY 2026 guidance at 27.400-27.900 EPS. Equities analysts anticipate that Northrop Grumman will post 27.83 earnings per share for the current fiscal year.
Northrop Grumman Announces Dividend
The business also recently disclosed a quarterly dividend, which was paid on Wednesday, March 11th. Stockholders of record on Monday, February 23rd were paid a $2.31 dividend. The ex-dividend date of this dividend was Monday, February 23rd. This represents a $9.24 annualized dividend and a dividend yield of 1.6%. Northrop Grumman’s dividend payout ratio is 31.72%.
Insider Buying and Selling
In other news, Director Mark A. Welsh III sold 95 shares of the stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $684.52, for a total value of $65,029.40. Following the completion of the sale, the director directly owned 4,203 shares of the company’s stock, valued at $2,877,037.56. This represents a 2.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Michael A. Hardesty sold 147 shares of the stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $732.98, for a total value of $107,748.06. Following the sale, the chief accounting officer directly owned 2,525 shares of the company’s stock, valued at $1,850,774.50. The trade was a 5.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 22,431 shares of company stock valued at $15,924,404. 0.21% of the stock is owned by company insiders.
Key Northrop Grumman News
Here are the key news stories impacting Northrop Grumman this week:
- Positive Sentiment: Q1 beat — Northrop reported $6.14 adjusted EPS and $9.88B revenue, topping consensus and showing organic sales growth that supports medium‑term demand for defense programs. NOC Q1 Deep Dive
- Positive Sentiment: Strong program backlog and defense tailwinds — Management highlighted robust demand across missile systems, B-21 production ramps and Sentinel work, underpinning revenue visibility. Defense spending outlook
- Positive Sentiment: Analyst support — Several firms continue to rate NOC as buy/overweight with price targets well above the current level, and at least one aftermarket upgrade argues the pullback creates a strong-buy opportunity. SA: Strong Buy thesis
- Neutral Sentiment: Guidance reaffirmed — Management kept FY‑2026 sales at ~$43.5–44.0B and EPS at $27.40–27.90 (a “ramp” year message). That preserves credibility but disappointed investors hoping for an upside raise. Guidance & capex note
- Neutral Sentiment: Mixed analyst notes — Some firms trimmed price targets modestly while keeping buy/overweight stances; others issued holds, reflecting divergent views on execution vs long‑term thesis. Bernstein hold
- Negative Sentiment: Higher near‑term spending — Northrop raised FY‑2026 capex to ~$1.85B to support the B‑21 ramp, which increases near‑term cash intensity and weighs on free cash flow expectations. Capex increase
- Negative Sentiment: Q1 cash burn and program charge — The quarter showed operating and free cash flow uses and a ~$71M unfavorable EAC adjustment on a Space Systems program (GEM 63XL launch anomaly), raising near‑term execution concerns. Cash burn & charge analysis
- Negative Sentiment: Market reaction explained — Like other defense peers, NOC shares sold off after a beat because guidance was only reaffirmed (not raised) and investors focused on execution/cash signals rather than headline beats. MarketBeat: why stocks fell
Institutional Trading of Northrop Grumman
Institutional investors and hedge funds have recently modified their holdings of the business. Karpus Management Inc. purchased a new stake in shares of Northrop Grumman during the fourth quarter valued at approximately $26,000. Motiv8 Investments LLC purchased a new stake in shares of Northrop Grumman during the fourth quarter valued at approximately $30,000. EFG International AG purchased a new stake in shares of Northrop Grumman during the fourth quarter valued at approximately $31,000. Prosperity Bancshares Inc purchased a new stake in shares of Northrop Grumman during the fourth quarter valued at approximately $32,000. Finally, Kemnay Advisory Services Inc. purchased a new stake in shares of Northrop Grumman during the fourth quarter valued at approximately $33,000. 83.40% of the stock is owned by hedge funds and other institutional investors.
About Northrop Grumman
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.
Further Reading
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