Northrop Grumman (NYSE:NOC) Announces Earnings Results

Northrop Grumman (NYSE:NOC) posted its quarterly earnings data on Tuesday. The aerospace company reported $7.23 earnings per share for the quarter, topping the consensus estimate of $6.97 by $0.26, Zacks reports. Northrop Grumman had a return on equity of 25.49% and a net margin of 9.82%.The firm had revenue of $11.71 billion during the quarter, compared to analyst estimates of $11.61 billion. During the same period last year, the company posted $6.39 EPS. The business’s quarterly revenue was up 9.6% on a year-over-year basis. Northrop Grumman updated its FY 2026 guidance to 27.400-27.900 EPS.

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

• 2025 results beat expectations — sales accelerated in Q4, the company finished with a record backlog of over $95 billion (driven by ~$46 billion in 2025 awards) and generated $3.3 billion of free cash flow (up 26%).
• 2026 guidance is consistent with October — sales $43.5–44.0B (mid-single-digit growth), adjusted EPS $27.40–27.90, segment operating income $4.85–5.0B, and free cash flow $3.1–3.5B, while CapEx is being increased to $1.65B to support growth.
• The company is investing to expand industrial capacity — notably tripling tactical solid rocket motor production at its ABL site by early 2027 and planning a threefold increase at Elkton by 2030 to meet rising munitions demand.
• International momentum is strong — international sales rose ~20% in 2025, Northrop reports >20 countries have requested IBCS, and management expects multiple international awards and continued export/partnership growth into 2026–27.
• Management is negotiating a potential B-21 production acceleration that could require $2–3 billion of multi-year investment and would primarily deliver incremental revenue and returns in 2027–2029, with limited 2026 impact and execution risk to monitor.

Northrop Grumman Price Performance

NYSE:NOC traded up $17.37 during mid-day trading on Tuesday, hitting $678.34. 1,027,556 shares of the stock traded hands, compared to its average volume of 1,189,490. The business’s 50-day moving average price is $589.86 and its 200 day moving average price is $584.59. The company has a quick ratio of 0.98, a current ratio of 1.11 and a debt-to-equity ratio of 0.95. The company has a market cap of $96.81 billion, a PE ratio of 24.40, a price-to-earnings-growth ratio of 5.46 and a beta of 0.05. Northrop Grumman has a 12-month low of $426.24 and a 12-month high of $683.01.

Northrop Grumman Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 17th. Stockholders of record on Monday, December 1st were given a dividend of $2.31 per share. The ex-dividend date was Monday, December 1st. This represents a $9.24 annualized dividend and a dividend yield of 1.4%. Northrop Grumman’s dividend payout ratio is currently 33.24%.

Wall Street Analyst Weigh In

NOC has been the topic of a number of analyst reports. Susquehanna reaffirmed a “positive” rating and set a $752.00 price objective on shares of Northrop Grumman in a report on Thursday, January 15th. Citigroup increased their price objective on shares of Northrop Grumman from $654.00 to $715.00 and gave the company a “buy” rating in a research note on Tuesday, January 13th. JPMorgan Chase & Co. lifted their target price on shares of Northrop Grumman from $575.00 to $640.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 22nd. Alembic Global Advisors raised Northrop Grumman from a “neutral” rating to an “overweight” rating and set a $662.00 target price for the company in a report on Monday, December 15th. Finally, Morgan Stanley reiterated an “overweight” rating and set a $714.00 price target on shares of Northrop Grumman in a report on Tuesday, December 16th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $656.82.

Northrop Grumman News Roundup

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

• Positive Sentiment: Q4 beat on profit and revenue — NOC reported $7.23 EPS (above consensus) and $11.7B in revenue, up ~9.6% YoY, driven by strength across segments which supports near-term earnings momentum. Record Organic Sales Aid Northrop’s Q4 Earnings & Revenue Beat
• Positive Sentiment: Record backlog and demand tailwinds — backlog rose to about $95.7B, signaling multi-year revenue visibility and strong defense/space program demand amid geopolitical uncertainty. What’s Going On With Northrup Grumman Stock?
• Positive Sentiment: Margins, cash flow and buybacks supportive — the company expanded operating margins and reported strong operating cash flow / free cash generation, enabling continued buybacks and supporting shareholder returns. Northrop Grumman Confirms Breakout With Buy Signal
• Neutral Sentiment: Full earnings materials and transcripts available — investors can review the Q4 slide deck and the earnings-call transcript for segment-level detail and management commentary on program timing. Q4 2025 Earnings Call Transcript Q4 Results — Earnings Call Presentation
• Negative Sentiment: Cautious FY2026 guidance — management set FY2026 EPS of $27.40–$27.90 and revenue guidance roughly $43.5–$44.0B, slightly below some analyst consensus, which could cap upside until execution against backlog is demonstrated. Northrop Grumman Releases Fourth Quarter and Full-Year 2025 Financial Results
• Negative Sentiment: Insider selling flagged — recent open-market sales by senior insiders are noted in filings; while not unusual, this can create short-term sentiment headwinds. Insider Activity & Financial Results

Insider Buying and Selling at Northrop Grumman

In other news, Director Mark A. Welsh III sold 97 shares of the stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $564.08, for a total transaction of $54,715.76. Following the transaction, the director directly owned 4,281 shares in the company, valued at approximately $2,414,826.48. This represents a 2.22% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Kathy J. Warden sold 3,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 6th. The stock was sold at an average price of $615.00, for a total value of $1,845,000.00. Following the completion of the sale, the chief executive officer owned 191,602 shares of the company’s stock, valued at $117,835,230. The trade was a 1.54% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 10,097 shares of company stock valued at $6,099,716 in the last three months. 0.23% of the stock is owned by corporate insiders.

Institutional Trading of Northrop Grumman

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Brighton Jones LLC lifted its stake in shares of Northrop Grumman by 176.3% in the 4th quarter. Brighton Jones LLC now owns 2,970 shares of the aerospace company’s stock valued at $1,394,000 after purchasing an additional 1,895 shares during the period. Bison Wealth LLC raised its holdings in Northrop Grumman by 5.3% in the fourth quarter. Bison Wealth LLC now owns 641 shares of the aerospace company’s stock worth $301,000 after purchasing an additional 32 shares in the last quarter. Chapman Financial Group LLC purchased a new position in Northrop Grumman during the second quarter valued at $222,000. Kestra Investment Management LLC lifted its position in Northrop Grumman by 52.4% during the second quarter. Kestra Investment Management LLC now owns 500 shares of the aerospace company’s stock valued at $250,000 after buying an additional 172 shares during the period. Finally, ICONIQ Capital LLC boosted its holdings in shares of Northrop Grumman by 9.4% during the 2nd quarter. ICONIQ Capital LLC now owns 546 shares of the aerospace company’s stock valued at $273,000 after buying an additional 47 shares in the last quarter. Institutional investors own 83.40% of the company’s stock.

Northrop Grumman Company Profile

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.