Northrop Grumman (NYSE:NOC) Issues Earnings Results

Northrop Grumman (NYSE:NOC) announced its earnings results on Tuesday. The aerospace company reported $7.68 earnings per share for the quarter, beating analysts’ consensus estimates of $6.82 by $0.86, FiscalAI reports. The business had revenue of $10.88 billion during the quarter, compared to analyst estimates of $10.80 billion. Northrop Grumman had a net margin of 10.48% and a return on equity of 24.25%. The company’s quarterly revenue was up 5.1% compared to the same quarter last year. During the same period in the previous year, the business earned $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 Up 2.6%

NOC opened at $525.50 on Thursday. The stock has a market cap of $74.64 billion, a price-to-earnings ratio of 16.69, a price-to-earnings-growth ratio of 3.36 and a beta of -0.10. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.04 and a current ratio of 1.17. The firm’s fifty day moving average is $536.10 and its 200 day moving average is $623.03. Northrop Grumman has a fifty-two week low of $479.02 and a fifty-two week high of $774.00.

Northrop Grumman Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Investors of record on Monday, June 1st were paid a dividend of $2.47 per share. This is a positive change from Northrop Grumman’s previous quarterly dividend of $2.31. The ex-dividend date was Monday, June 1st. This represents a $9.88 dividend on an annualized basis and a dividend yield of 1.9%. Northrop Grumman’s dividend payout ratio is presently 31.39%.

Wall Street Analyst Weigh In

NOC has been the subject of a number of research reports. Morgan Stanley set a $745.00 price objective on Northrop Grumman in a research report on Wednesday, July 15th. Citigroup dropped their target price on Northrop Grumman from $628.00 to $587.00 and set a “buy” rating on the stock in a research report on Wednesday, July 1st. Robert W. Baird set a $500.00 price target on shares of Northrop Grumman in a research report on Wednesday. The Goldman Sachs Group reduced their price target on shares of Northrop Grumman from $603.00 to $533.00 and set a “neutral” rating for the company in a research report on Tuesday, July 14th. Finally, Raymond James Financial reiterated an “outperform” rating on shares of Northrop Grumman in a research note on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $657.14.

Key Northrop Grumman News

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

• Positive Sentiment: Northrop Grumman delivered a solid Q2 beat, with EPS of $7.68 topping estimates and revenue of $10.88 billion above expectations, while also raising full-year 2026 guidance. Northrop Grumman beats Q2 estimates, raises guidance
• Positive Sentiment: The company highlighted record backlog near $105 billion and strong bookings, which supports future revenue visibility and suggests continued demand across key defense programs. Northrop Grumman Corp (NOC) Q2 2026 Earnings Call Highlights: Record Backlog and Raised …
• Positive Sentiment: Northrop Grumman is also expanding in intelligence, surveillance and reconnaissance, including a NATO-focused Airbus pact around MQ-4C Triton systems, which could support longer-term growth. Is Northrop Grumman Expanding Its Presence in the ISR Market?
• Neutral Sentiment: UBS raised its price target to $685 and kept a buy rating, while TD Cowen cut its target to $550 and stayed at hold, underscoring divided analyst sentiment after the earnings report. Northrop Grumman had its price target lowered by TD Cowen
• Neutral Sentiment: The company also drew attention for a space-robot mission to extend the life of aging satellites, highlighting innovation in its space business, though the direct near-term earnings impact is unclear. Northrop Grumman launches private robot mission to strap jetpacks on aging satellites
• Negative Sentiment: Despite the strong quarter, the stock has been under pressure as investors appear to worry about margin compression in some segments and whether the good results were already priced in. Northrop Reports Q2 Double Beat, Record Backlog — Stock Falls Anyway

Hedge Funds Weigh In On Northrop Grumman

Large investors have recently made changes to their positions in the business. Karpus Management Inc. purchased a new stake in shares of Northrop Grumman during the fourth quarter worth about $26,000. Motiv8 Investments LLC purchased a new position in Northrop Grumman in the 4th quarter worth approximately $30,000. EFG International AG bought a new position in Northrop Grumman in the 4th quarter worth approximately $31,000. Prosperity Bancshares Inc bought a new position in Northrop Grumman in the 4th quarter worth approximately $32,000. Finally, Kemnay Advisory Services Inc. purchased a new stake in Northrop Grumman during the 4th quarter valued at approximately $33,000. 83.40% of the stock is currently owned by hedge funds and other institutional investors.

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.