TD Cowen Has Lowered Expectations for Northrop Grumman (NYSE:NOC) Stock Price

Key Points

• TD Cowen cut its price target on Northrop Grumman from $580 to $550 and kept a hold rating, implying only modest upside from the prior close.
• Northrop Grumman reported a Q2 earnings beat, with EPS of $7.68 and revenue of $10.88 billion, and it raised its FY 2026 guidance amid strong weapons demand and a record backlog.
• Despite the strong results, the stock was under pressure overall, with shares trading around $527.18 and analysts showing mixed views; the broader consensus remains Moderate Buy.

Northrop Grumman (NYSE:NOC - Get Free Report) had its target price decreased by equities researchers at TD Cowen from $580.00 to $550.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm presently has a "hold" rating on the aerospace company's stock. TD Cowen's price target indicates a potential upside of 4.33% from the stock's previous close.

A number of other analysts have also recently commented on the company. Wells Fargo & Company reiterated an "overweight" rating and set a $620.00 target price on shares of Northrop Grumman in a research report on Wednesday, July 8th. UBS Group upped their target price on Northrop Grumman from $666.00 to $685.00 and gave the company a "buy" rating in a research report on Wednesday. Deutsche Bank Aktiengesellschaft set a $615.00 price target on Northrop Grumman in a research note on Wednesday. The Goldman Sachs Group cut their price target 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, Morgan Stanley set a $745.00 price objective on Northrop Grumman in a report on Wednesday, July 15th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and ten have assigned a Hold rating to the company's stock. According to MarketBeat, Northrop Grumman presently has a consensus rating of "Moderate Buy" and a consensus target price of $657.14.

Northrop Grumman Stock Up 2.9%

Shares of Northrop Grumman stock traded up $14.89 during trading hours on Wednesday, hitting $527.18. The company had a trading volume of 603,894 shares, compared to its average volume of 956,641. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.15 and a quick ratio of 1.04. The company's 50-day moving average is $536.62 and its two-hundred day moving average is $623.35. The company has a market cap of $74.88 billion, a P/E ratio of 16.54, a price-to-earnings-growth ratio of 3.54 and a beta of -0.10. Northrop Grumman has a twelve month low of $479.02 and a twelve month high of $774.00.

Northrop Grumman (NYSE:NOC - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The aerospace company reported $7.68 EPS for the quarter, topping the consensus estimate of $6.82 by $0.86. Northrop Grumman had a net margin of 10.80% and a return on equity of 24.72%. The firm had revenue of $10.88 billion for the quarter, compared to analyst estimates of $10.80 billion. During the same period last year, the business earned $8.15 EPS. Northrop Grumman's revenue for the quarter was up 5.1% compared to the same quarter last year. Northrop Grumman has set its FY 2026 guidance at 28.600-29.100 EPS. Analysts anticipate that Northrop Grumman will post 27.96 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Northrop Grumman

Hedge funds and other institutional investors have recently bought and sold shares of the business. Torren Management LLC acquired a new stake in shares of Northrop Grumman in the fourth quarter valued at about $26,000. Karpus Management Inc. purchased a new position in shares of Northrop Grumman in the fourth quarter valued at $26,000. Kohmann Bosshard Financial Services LLC acquired a new position in shares of Northrop Grumman during the 4th quarter worth $29,000. Perkins Coie Trust Co acquired a new position in shares of Northrop Grumman during the 2nd quarter worth $29,000. Finally, Financial Life Planners purchased a new stake in shares of Northrop Grumman in the 1st quarter worth about $30,000. Institutional investors and hedge funds own 83.40% of the company's stock.

Northrop Grumman News Roundup

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

• Positive Sentiment: Northrop Grumman beat Q2 expectations, with EPS of $7.68 and revenue of $10.88 billion, while also raising its 2026 guidance. Management pointed to strong weapons demand, record backlog, and solid program momentum as reasons for improved second-half growth. Reuters article
• Positive Sentiment: UBS raised its price target on Northrop Grumman to $685 from $666 and reiterated a buy rating, signaling continued analyst confidence in upside from current levels. Tickerreport article
• Positive Sentiment: Northrop highlighted a record backlog of about $105 billion and said its Q2 earnings call points to faster growth in the second half of 2026, which should reassure investors about demand visibility. Zacks article
• Neutral Sentiment: The company is also expanding its ISR footprint through a NATO-focused Airbus pact tied to MQ-4C Triton systems, which could support long-term international demand but is not likely to move the stock immediately. Zacks article
• Negative Sentiment: Despite the strong results, the shares have been under pressure because investors appear focused on margin concerns and broader defense-stock weakness, leading to a selloff even after the beat-and-raise report. Benzinga article

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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