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

Key Points

• Northrop Grumman raised its FY 2026 outlook, guiding for EPS of $28.60-$29.10 and revenue of $43.8 billion-$44.3 billion, both around or above Wall Street expectations.
• Latest quarterly results topped estimates, with Q2 EPS of $7.68 versus $6.84 expected and revenue of $10.88 billion, slightly ahead of forecasts.
• The company increased its quarterly dividend to $2.47 per share from $2.31, which annualizes to $9.88 and implies a 1.9% yield.

Northrop Grumman (NYSE:NOC - Get Free Report) updated its FY 2026 earnings guidance on Tuesday. The company provided EPS guidance of 28.600-29.100 for the period, compared to the consensus EPS estimate of 27.950. The company issued revenue guidance of $43.8 billion-$44.3 billion, compared to the consensus revenue estimate of $44.0 billion.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on NOC shares. TD Cowen decreased their target price on Northrop Grumman from $680.00 to $580.00 and set a "hold" rating on the stock in a research note on Monday, July 13th. UBS Group lowered their target price on Northrop Grumman from $806.00 to $745.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. Weiss Ratings cut shares of Northrop Grumman from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, July 15th. The Goldman Sachs Group cut their target price on Northrop Grumman from $603.00 to $533.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 14th. Finally, Citigroup decreased their price objective on shares of Northrop Grumman from $628.00 to $587.00 and set a "buy" rating for the company in a research note on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat.com, Northrop Grumman presently has an average rating of "Moderate Buy" and an average target price of $676.29.

Northrop Grumman Price Performance

Northrop Grumman stock opened at $524.95 on Tuesday. The company has a quick ratio of 1.04, a current ratio of 1.15 and a debt-to-equity ratio of 0.84. The firm's 50-day simple moving average is $537.61 and its 200 day simple moving average is $623.79. Northrop Grumman has a 52 week low of $493.84 and a 52 week high of $774.00. The firm has a market capitalization of $74.56 billion, a PE ratio of 16.43, a P/E/G ratio of 3.53 and a beta of -0.10.

Northrop Grumman (NYSE:NOC - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The aerospace company reported $7.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.84 by $0.84. Northrop Grumman had a net margin of 10.80% and a return on equity of 24.72%. The company had revenue of $10.88 billion for the quarter, compared to the consensus estimate of $10.80 billion. Northrop Grumman has set its FY 2026 guidance at 28.600-29.100 EPS. On average, equities research analysts predict that Northrop Grumman will post 27.95 EPS for the current fiscal year.

Northrop Grumman Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Monday, June 1st were issued a dividend of $2.47 per share. This represents a $9.88 dividend on an annualized basis and a dividend yield of 1.9%. This is a boost from Northrop Grumman's previous quarterly dividend of $2.31. The ex-dividend date was Monday, June 1st. Northrop Grumman's payout ratio is presently 30.92%.

Trending Headlines about Northrop Grumman

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

• Positive Sentiment: The company reported Q2 EPS of $7.68, beating Wall Street’s estimate of $6.84, and revenue of $10.88 billion, slightly ahead of expectations. Article Title
• Positive Sentiment: Northrop Grumman raised its 2026 sales and adjusted profit forecast, citing strong weapons demand tied to ongoing global geopolitical conflicts. Article Title
• Neutral Sentiment: The company formally released its second-quarter 2026 financial results and investor materials, confirming the earnings update to shareholders. Article Title
• Neutral Sentiment: Heading into earnings, analysts were watching for a possible decline in EPS, making the actual beat and guidance raise more meaningful for the stock. Article Title

Institutional Investors Weigh In On Northrop Grumman

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Karpus Management Inc. acquired a new position in Northrop Grumman in the 4th quarter worth $26,000. Motiv8 Investments LLC acquired a new position in Northrop Grumman in the 4th quarter valued at approximately $30,000. EFG International AG acquired a new stake in shares of Northrop Grumman in the 4th quarter valued at $31,000. Wexford Capital LP acquired a new stake in shares of Northrop Grumman in the third quarter valued at about $33,000. Finally, Prosperity Bancshares Inc acquired a new stake in Northrop Grumman in the 4th quarter valued at approximately $32,000. Hedge funds and other institutional investors own 83.40% of the company's stock.

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.

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