Northrop Grumman (NYSE:NOC) Announces FY 2026 Earnings Guidance

Key Points

• Northrop Grumman raised its FY 2026 earnings outlook to adjusted EPS of $29.35–$29.75, above the $28.97 consensus estimate. Revenue guidance of $43.8 billion–$44.3 billion is broadly in line with expectations.
• The company’s third-quarter results exceeded forecasts, with EPS of $7.89 versus the $7.18 consensus and revenue up 6.7% year over year to $11.12 billion.
• Shares rose 1% to $539.46, while analyst sentiment remained favorable with a “Moderate Buy” consensus and an average price target of $641.35; the company also maintains a 1.8% dividend yield.

Northrop Grumman (NYSE:NOC - Get Free Report) updated its FY 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 29.350-29.750 for the period, compared to the consensus EPS estimate of 28.970. The company issued revenue guidance of $43.8 billion-$44.3 billion, compared to the consensus revenue estimate of $44.0 billion.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on NOC shares. Rothschild & Co Redburn began coverage on shares of Northrop Grumman in a report on Tuesday, October 6th. They issued a "buy" rating and a $680.00 target price for the company. Guggenheim lifted their price target on shares of Northrop Grumman from $612.00 to $640.00 and gave the company a "buy" rating in a report on Wednesday. BNP Paribas Exane upped their price objective on shares of Northrop Grumman from $540.00 to $600.00 and gave the stock an "outperform" rating in a research report on Wednesday. Barclays assumed coverage on shares of Northrop Grumman in a research report on Thursday, October 8th. They set an "underweight" rating and a $419.00 price objective for the company. Finally, Jefferies Financial Group dropped their price objective on shares of Northrop Grumman from $620.00 to $580.00 and set a "hold" rating for the company in a research note on Friday, June 26th. Fifteen investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Northrop Grumman presently has a consensus rating of "Moderate Buy" and an average price target of $641.35.

Northrop Grumman Trading Up 1.0%

Shares of Northrop Grumman stock traded up $5.46 on Wednesday, hitting $539.46. The stock had a trading volume of 1,186,398 shares, compared to its average volume of 928,180. The stock has a 50 day moving average of $523.03 and a 200 day moving average of $550.14. The firm has a market capitalization of $76.62 billion, a P/E ratio of 17.14, a PEG ratio of 2.99 and a beta of -0.11. Northrop Grumman has a twelve month low of $470.06 and a twelve month high of $774.00. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.06 and a current ratio of 1.17.

Northrop Grumman (NYSE:NOC - Get Free Report) last posted its earnings results on Tuesday, October 20th. The aerospace company reported $7.89 earnings per share for the quarter, topping analysts' consensus estimates of $7.18 by $0.71. Northrop Grumman had a net margin of 10.48% and a return on equity of 24.25%. The firm had revenue of $11.12 billion for the quarter, compared to analyst estimates of $11.14 billion. During the same period in the previous year, the firm posted $7.67 EPS. The company's revenue for the quarter was up 6.7% compared to the same quarter last year. Sell-side analysts expect that Northrop Grumman will post 28.99 earnings per share for the current fiscal year.

Northrop Grumman Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Monday, August 31st were issued a dividend of $2.47 per share. This represents a $9.88 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date was Monday, August 31st. Northrop Grumman's payout ratio is 31.39%.

Insider Activity at Northrop Grumman

In related news, Director Mark Welsh, III sold 95 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $547.53, for a total value of $52,015.35. Following the completion of the sale, the director directly owned 4,393 shares in the company, valued at $2,405,299.29. This represents a 2.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.21% of the company's stock.

Key Stories Impacting Northrop Grumman

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

• Positive Sentiment: Q3 earnings beat expectations. Northrop reported adjusted earnings of $7.89 per share, above the approximately $7.18–$7.22 consensus, while revenue rose 6.7% year over year to $11.12 billion and was broadly in line with estimates. Northrop Grumman Q3 earnings report
• Positive Sentiment: Northrop raised its FY 2026 outlook. The company now expects adjusted EPS of $29.35–$29.75, above the roughly $28.97 consensus, while revenue guidance of $43.8 billion–$44.3 billion remains near expectations. Reuters Northrop Grumman outlook article
• Positive Sentiment: Record backlog supports future revenue. Backlog reached approximately $109.6 billion to $110 billion, up about 20% year over year, with third-quarter awards of $16.4 billion. Management also targets 5%–7% sales growth in 2027, supported by B-21 investments and strong defense and space demand. Northrop Grumman backlog and guidance article
• Positive Sentiment: Analysts became more constructive. BNP Paribas Exane raised its price target to $600 and maintained an Outperform rating, while Baird reportedly lifted its target to $675 and upgraded the shares to Outperform. Analyst estimates for Northrop Grumman
• Neutral Sentiment: The stock remains about 17% below its year-to-date starting level, which has prompted investors to consider whether the pullback represents a discounted entry point for dividend and defense exposure. Northrop Grumman dividend valuation article
• Negative Sentiment: Higher capital spending, potential margin pressure and paused buybacks could limit near-term shareholder returns. Investors also face political and budget uncertainty surrounding defense programs, while reported insider activity has consisted of sales rather than purchases.

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.

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