Northrop Grumman (NYSE:NOC) Issues Earnings Results

Northrop Grumman (NYSE:NOC) issued its quarterly earnings data on Tuesday. The aerospace company reported $6.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.06 by $0.08, FiscalAI reports. Northrop Grumman had a net margin of 9.97% and a return on equity of 25.57%. The business had revenue of $9.88 billion during the quarter, compared to the consensus estimate of $9.75 billion. During the same period in the prior year, the firm posted $6.06 EPS. The firm’s quarterly revenue was up 4.4% compared to the same quarter last year. Northrop Grumman updated its FY 2026 guidance to 27.400-27.900 EPS.

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

• B-21: Northrop reached an agreement to increase the B-21 annual production rate by 25%, received Lot 3/4 LRIP awards, and will invest ~$2.5 billion (with ~$200 million of CapEx in 2026) to expand production capacity; an aircraft sale to the Air Force accelerated revenue into Q1 without changing total LRIP deliveries.
• Sentinel acceleration: The program is moving faster with a Milestone B expected later this year, first flight in 2027 and IOC in the early 2030s, delivered double-digit growth in Q1 and represents roughly 6–7% of company revenue today with further growth expected.
• Strong demand and financials: Q1 bookings were $9.8 billion with a backlog of $96 billion, sales of $9.9 billion (+5% organic), diluted EPS of $6.14, and management reaffirmed full‑year sales guidance of $43.5–44.0 billion and free cash flow guidance of $3.1–3.5 billion.
• Weapons / missile defense tailwinds: The company has invested >$2 billion to expand solid rocket motor capacity (capacity doubled, further expansion through 2027), weapons is nearing ~10% of sales, missile defense is ~10% of sales, and Northrop secured a $1.3 billion GPI award to counter hypersonics.
• Space segment headwinds: Space sales and operating income declined in Q1 due to a prior-year NGI closeout ($98 million in Q1 2025) and an unfavorable earnings adjustment of $71 million on GEM 63XL, although management said no other significant EACs were identified this quarter.

Northrop Grumman Stock Down 6.9%

Northrop Grumman stock opened at $611.42 on Wednesday. Northrop Grumman has a twelve month low of $450.13 and a twelve month high of $774.00. The firm has a 50 day moving average price of $705.88 and a 200-day moving average price of $639.26. The company has a market capitalization of $86.84 billion, a P/E ratio of 20.99, a P/E/G ratio of 4.65 and a beta of 0.04. The company has a quick ratio of 1.01, a current ratio of 1.10 and a debt-to-equity ratio of 0.91.

Northrop Grumman Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, March 11th. Stockholders of record on Monday, February 23rd were given a dividend of $2.31 per share. This represents a $9.24 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend was Monday, February 23rd. Northrop Grumman’s dividend payout ratio is currently 31.72%.

Insider Activity at Northrop Grumman

In other news, CEO Kathy J. Warden sold 20,000 shares of the stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $708.82, for a total transaction of $14,176,400.00. Following the completion of the transaction, the chief executive officer directly owned 171,602 shares of the company’s stock, valued at $121,634,929.64. This represents a 10.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 transaction of $107,748.06. Following the transaction, the chief accounting officer directly owned 2,525 shares of the company’s stock, valued at $1,850,774.50. This represents a 5.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 22,431 shares of company stock valued at $15,924,404 over the last quarter. 0.21% of the stock is currently owned by insiders.

Institutional Trading of Northrop Grumman

Institutional investors have recently modified their holdings of the business. Karpus Management Inc. purchased a new stake in shares of Northrop Grumman during the 4th quarter valued at approximately $26,000. Motiv8 Investments LLC purchased a new stake in shares of Northrop Grumman during the 4th quarter valued at approximately $30,000. EFG International AG purchased a new stake in shares of Northrop Grumman during the 4th quarter valued at approximately $31,000. Wexford Capital LP purchased a new stake in shares of Northrop Grumman during the 3rd quarter valued at approximately $33,000. Finally, Prosperity Bancshares Inc purchased a new stake in shares of Northrop Grumman during the 4th quarter valued at approximately $32,000. 83.40% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Northrop Grumman

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

• Positive Sentiment: Q1 results beat and backlog support — NOC reported $6.14 EPS on ~$9.9B revenue, topping consensus; management highlighted strong aeronautics demand and a backlog that supports multi-year visibility. Northrop Grumman (NOC) Q1 Earnings and Revenues Beat Estimates
• Neutral Sentiment: Analyst view and longer-term targets remain constructive — multiple firms still carry buy ratings and analyst median price targets (~$750) that imply meaningful upside over time, supporting a longer-term bull case despite near-term volatility. Northrop Grumman Stock (NOC) Opinions on Q1 Earnings Release
• Negative Sentiment: Reaffirmed guidance below street expectations — management reiterated FY2026 EPS and revenue targets (EPS 27.40–27.90; revenue $43.5B–$44.0B), which came in slightly below consensus and disappointed investors who had hoped for an upside raise. Stealth Bomber Maker Northrop Grumman Delivers Strong Earnings. The Stock Is Down.
• Negative Sentiment: Quarterly cash use and program adjustment — Q1 showed about $1.6B operating cash use and ~$1.8B free-cash-flow use (seasonal but heavier than some expected) and a $71M unfavorable EAC adjustment in Space Systems (GEM 63XL launch anomaly), raising near-term execution and cash concerns. Northrop Grumman falls as investors focus on Q1 cash burn and a Space Systems charge
• Negative Sentiment: Higher capex tied to B-21 ramp — management raised FY2026 capex to ~$1.85B to support B-21 production capacity expansion, which is positive for program delivery but increases near-term cash needs and capital intensity. Northrop Grumman reaffirms $43.5B-$44B 2026 sales outlook while lifting 2026 capex to $1.85B for B-21 ramp

Analyst Ratings Changes

A number of equities research analysts have issued reports on NOC shares. Susquehanna reaffirmed a “positive” rating and issued a $752.00 price objective on shares of Northrop Grumman in a research report on Thursday, January 15th. Vertical Research reaffirmed a “hold” rating and issued a $688.00 price objective on shares of Northrop Grumman in a research report on Tuesday, January 27th. BTIG Research reaffirmed a “buy” rating and issued a $815.00 price objective on shares of Northrop Grumman in a research report on Wednesday. UBS Group upped their price objective on shares of Northrop Grumman from $777.00 to $778.00 and gave the stock a “buy” rating in a research report on Wednesday, January 28th. Finally, TD Cowen reaffirmed a “hold” rating on shares of Northrop Grumman in a research report on Wednesday, January 28th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Northrop Grumman has a consensus rating of “Moderate Buy” and an average price target of $719.58.

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.