Northrop Grumman (NYSE:NOC) Posts Earnings Results, Beats Estimates By $0.71 EPS

Northrop Grumman (NYSE:NOC) announced its quarterly earnings results on Tuesday. The aerospace company reported $7.89 earnings per share for the quarter, beating analysts’ consensus estimates of $7.18 by $0.71, FiscalAI reports. The business had revenue of $11.12 billion during the quarter, compared to analysts’ expectations of $11.14 billion. Northrop Grumman had a return on equity of 23.46% and a net margin of 10.37%. The business’s revenue for the quarter was up 6.7% on a year-over-year basis. During the same quarter last year, the business posted $7.67 earnings per share.

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

• Strong demand and execution: Third-quarter sales rose 7% year over year, book-to-bill was 1.5, and backlog increased 20% to a record $110 billion. Segment operating margin reached 12.1%.
• Northrop Grumman raised its 2026 segment operating income guidance by $65 million and EPS guidance by $0.70, while maintaining its $3.1 billion–$3.5 billion adjusted free cash flow outlook.
• Management expects 2027 sales growth of 5%–7% across all four segments, with further acceleration beyond 2027 driven by B-21, Sentinel, national security space, weapons production, and international sales.
• The company plans substantial capacity investments, including approximately $2.1 billion of 2027 capital expenditures, to support B-21 acceleration and missile and munitions production; management expects stronger execution and working-capital discipline to offset the higher spending.
• The outlook remains exposed to execution and timing risks, including B-21 fixed-price production losses, continuing-resolution funding uncertainty, international contract timing, and potentially lower Mission Systems margins after an exceptionally strong 2026.

Northrop Grumman Stock Up 1.0%

NOC opened at $539.46 on Thursday. The firm has a market cap of $76.62 billion, a P/E ratio of 17.02, a PEG ratio of 3.05 and a beta of -0.11. The business’s fifty day simple moving average is $522.28 and its 200 day simple moving average is $548.98. Northrop Grumman has a 52 week low of $470.06 and a 52 week high of $774.00. The company has a quick ratio of 1.06, a current ratio of 1.23 and a debt-to-equity ratio of 0.77.

Northrop Grumman Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 16th. Investors of record on Monday, August 31st were paid a dividend of $2.47 per share. The ex-dividend date of this dividend was Monday, August 31st. This represents a $9.88 dividend on an annualized basis and a dividend yield of 1.8%. Northrop Grumman’s dividend payout ratio (DPR) is presently 31.17%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on NOC shares. TD Cowen lowered their price objective on shares of Northrop Grumman from $590.00 to $540.00 and set a “hold” rating on the stock in a research note on Friday, October 9th. The Goldman Sachs Group raised their target price on shares of Northrop Grumman from $533.00 to $538.00 and gave the company a “neutral” rating in a report on Monday, July 27th. Jefferies Financial Group cut their target price on shares of Northrop Grumman from $620.00 to $580.00 and set a “hold” rating for the company in a research report on Friday, June 26th. JPMorgan Chase & Co. cut their target price on shares of Northrop Grumman from $635.00 to $600.00 and set a “neutral” rating for the company in a research report on Thursday, July 23rd. Finally, BNP Paribas Exane upped their price target on shares of Northrop Grumman from $540.00 to $600.00 and gave the company an “outperform” rating in a report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Northrop Grumman currently has an average rating of “Moderate Buy” and a consensus price target of $641.35.

Key Northrop Grumman News

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, ahead of the approximately $7.18 consensus, while revenue rose 6.7% year over year to $11.12 billion and broadly matched estimates. Northrop Grumman Shares Up on Earnings Beat
• Positive Sentiment: Management raised its FY 2026 earnings outlook. The company now expects EPS of $29.35-$29.75, above the consensus estimate of $28.97. Revenue guidance of $43.8 billion-$44.3 billion was maintained around analysts’ expectations. Northrop Grumman Q3 Earnings Surpass Estimates
• Positive Sentiment: Record backlog supports longer-term visibility. Backlog reached approximately $109.6 billion-$110 billion, up about 20% year over year, with a 1.5x book-to-bill ratio. Management also projected 5%-7% sales growth in 2027, supported by B-21 bomber investment and demand across defense and space programs. Northrop Grumman Earnings Call Highlights
• Positive Sentiment: Analyst sentiment improved. BNP Paribas Exane raised its price target to $600 and rated the stock “outperform,” while Baird increased its target to $675 and upgraded the shares. Bank of America maintained a Buy rating with a $750 target. Northrop Grumman Analysts Boost Their Forecasts
• Neutral Sentiment: Investors are weighing the growth outlook against higher capital spending, potential margin pressure and paused share buybacks. The company’s sizable government exposure also leaves it sensitive to defense-budget priorities and political developments.

Insider Activity

In other Northrop Grumman news, Director Mark Welsh, III sold 95 shares of the firm’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $547.53, for a total transaction of $52,015.35. Following the sale, the director directly owned 4,393 shares of the company’s stock, valued at $2,405,299.29. This trade represents a 2.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.21% of the stock is owned by corporate insiders.

Northrop Grumman Company Profile

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.