Northrop Grumman (NYSE:NOC) Releases Quarterly Earnings Results, Beats Expectations By $0.86 EPS

Posted by Danessa Lincoln on Jul 22nd, 2026

Northrop Grumman (NYSE:NOC – Get Free Report) announced its quarterly earnings data on Tuesday. The aerospace company reported $7.68 EPS for the quarter, topping the consensus estimate of $6.82 by $0.86, FiscalAI reports. The company had revenue of $10.88 billion during the quarter, compared to the consensus estimate of $10.80 billion. Northrop Grumman had a net margin of 10.80% and a return on equity of 24.72%. The company’s quarterly revenue was up 5.1% on a year-over-year basis. During the same quarter last year, the firm posted $8.15 EPS. Northrop Grumman updated its FY 2026 guidance to 28.600-29.100 EPS.

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

Northrop Grumman raised its full-year 2026 outlook, now expecting sales of $43.75 billion to $44.25 billion and adjusted EPS of $28.60 to $29.10, driven by stronger second-half execution and margin improvement.
Bookings were very strong in Q2, with $20 billion of awards, a 1.84x book-to-bill, and backlog reaching a record $105 billion, which management says supports growth into 2026 and beyond.
The quarter included negative EAC adjustments on two programs: SiAW in Defense Systems and GEM 63XL in Space. Management said corrective actions are underway, including a redesigned GEM 63XL motor that passed static-fire testing.
Management highlighted multiple growth catalysts, including Sentinel program progress, a $7.6 billion backlog increase tied to that work, and momentum on missile-related opportunities such as PAC-3 and other multi-year agreements.
The company sees a broad demand backdrop in national security space and international defense markets, citing growth in areas like Triton, IBCS, and space-based capabilities, while reaffirming its goal to double international sales to $10 billion by 2031.

Northrop Grumman Stock Performance

Shares of Northrop Grumman stock opened at $508.84 on Wednesday. Northrop Grumman has a 12 month low of $479.02 and a 12 month high of $774.00. The business has a fifty day simple moving average of $536.62 and a two-hundred day simple moving average of $623.35. The firm has a market capitalization of $72.27 billion, a P/E ratio of 15.93, a P/E/G ratio of 3.54 and a beta of -0.10. The company has a current ratio of 1.15, a quick ratio of 1.04 and a debt-to-equity ratio of 0.84.

Northrop Grumman Increases Dividend

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

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. UBS Group decreased their price objective on Northrop Grumman from $806.00 to $745.00 and set a “buy” rating for the company in a report on Thursday, April 23rd. Weiss Ratings cut Northrop Grumman from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, July 15th. Citigroup reduced their price target on shares of Northrop Grumman from $628.00 to $587.00 and set a “buy” rating for the company in a research report on Wednesday, July 1st. TD Cowen lowered their price target on shares of Northrop Grumman from $680.00 to $580.00 and set a “hold” rating on the stock in a report on Monday, July 13th. Finally, BTIG Research reiterated a “buy” rating and set a $815.00 price target on shares of Northrop Grumman in a research note on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $676.29.

Check Out Our Latest Report on Northrop Grumman

Key Headlines Impacting Northrop Grumman

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

Positive Sentiment: Northrop Grumman beat Q2 expectations, posting $7.68 in EPS versus $6.82 expected and revenue of $10.88 billion versus $10.80 billion forecast. Northrop Grumman Corp (NOC) Q2 2026 Earnings Call Highlights: Record Backlog and Raised …
Positive Sentiment: The company raised its 2026 outlook, guiding EPS to $28.60-$29.10 and revenue to about $43.8 billion-$44.3 billion, signaling confidence in continued demand. Northrop Grumman raises 2026 forecasts on strong weapons demand
Positive Sentiment: Backlog reached a record roughly $105 billion, giving investors strong visibility into future revenue and highlighting sustained defense demand. Northrop Grumman Lifts Outlook as Second-Quarter Orders Boost Backlog to Record High
Neutral Sentiment: Analysts and commentary around the earnings call emphasized “durable growth,” but the market has so far looked past the upbeat narrative and focused on near-term execution concerns. Why Did PSKY, MCD, NOC Stocks Tumble To 52-Week Lows Today?
Negative Sentiment: Despite the earnings beat, the stock sold off as investors weighed margin compression in key segments and a broader de-rating of defense stocks. Defense Stock Misfires Even as Earnings, Backlog Impress

Hedge Funds Weigh In On Northrop Grumman

Several hedge funds and other institutional investors have recently modified their holdings of NOC. T. Rowe Price Investment Management Inc. boosted its position in shares of Northrop Grumman by 69.9% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 3,632 shares of the aerospace company’s stock worth $2,072,000 after purchasing an additional 1,494 shares during the period. Invesco Ltd. boosted its position in shares of Northrop Grumman by 3.9% during the fourth quarter. Invesco Ltd. now owns 1,666,517 shares of the aerospace company’s stock valued at $950,265,000 after buying an additional 62,817 shares during the period. Corient Private Wealth LLC increased its stake in Northrop Grumman by 168.8% in the 4th quarter. Corient Private Wealth LLC now owns 183,413 shares of the aerospace company’s stock worth $104,584,000 after buying an additional 115,170 shares during the period. Mercer Global Advisors Inc. ADV increased its position in shares of Northrop Grumman by 7.1% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 15,016 shares of the aerospace company’s stock worth $8,562,000 after acquiring an additional 996 shares during the period. Finally, Andrews Advisory Associates LLC bought a new position in shares of Northrop Grumman during the 4th quarter worth $1,426,000. 83.40% of the stock is owned by institutional investors.

Northrop Grumman Company Profile

(Get Free Report)

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.