Northrop Grumman (NYSE:NOC) Announces Quarterly Earnings Results, Beats Expectations By $0.26 EPS

Northrop Grumman (NYSE:NOC) posted its quarterly earnings data on Tuesday. The aerospace company reported $7.23 earnings per share for the quarter, beating analysts’ consensus estimates of $6.97 by $0.26, Zacks reports. Northrop Grumman had a net margin of 9.82% and a return on equity of 25.49%. The business had revenue of $11.71 billion for the quarter, compared to analysts’ expectations of $11.61 billion. During the same quarter in the previous year, the business posted $6.39 earnings per share. The business’s revenue was up 9.6% compared to the same quarter last year. 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 Trading Up 2.7%

NYSE NOC opened at $678.74 on Wednesday. The company has a market capitalization of $96.87 billion, a price-to-earnings ratio of 24.42, a price-to-earnings-growth ratio of 5.36 and a beta of 0.05. The company has a debt-to-equity ratio of 0.95, a current ratio of 1.11 and a quick ratio of 0.98. Northrop Grumman has a 12 month low of $426.24 and a 12 month high of $683.01. The firm’s fifty day moving average price is $592.10 and its 200 day moving average price is $585.75.

Northrop Grumman Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 17th. Investors of record on Monday, December 1st were issued a $2.31 dividend. This represents a $9.24 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend was Monday, December 1st. Northrop Grumman’s dividend payout ratio is 33.24%.

Insider Activity at Northrop Grumman

In other news, Director Mark A. Welsh III sold 97 shares of Northrop Grumman stock in a transaction that occurred on Monday, November 24th. The shares were sold at an average price of $564.08, for a total transaction of $54,715.76. Following the completion of the sale, the director directly owned 4,281 shares in the company, valued at approximately $2,414,826.48. This trade represents a 2.22% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Kathy J. Warden sold 3,000 shares of the business’s stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $615.00, for a total transaction of $1,845,000.00. Following the completion of the sale, the chief executive officer owned 191,602 shares in the company, valued at $117,835,230. This represents a 1.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 10,097 shares of company stock valued at $6,099,716 in the last 90 days. Company insiders own 0.23% of the company’s stock.

Institutional Investors Weigh In On Northrop Grumman

Hedge funds have recently made changes to their positions in the business. Balyasny Asset Management L.P. grew its position in Northrop Grumman by 1,690.0% during the third quarter. Balyasny Asset Management L.P. now owns 109,138 shares of the aerospace company’s stock valued at $66,500,000 after acquiring an additional 103,041 shares during the period. Adage Capital Partners GP L.L.C. increased its holdings in Northrop Grumman by 322.2% during the 2nd quarter. Adage Capital Partners GP L.L.C. now owns 110,920 shares of the aerospace company’s stock worth $55,458,000 after purchasing an additional 84,645 shares during the last quarter. Freestone Grove Partners LP acquired a new stake in Northrop Grumman in the third quarter valued at $43,982,000. Vident Advisory LLC boosted its stake in Northrop Grumman by 39.9% during the 2nd quarter. Vident Advisory LLC now owns 198,574 shares of the aerospace company’s stock valued at $99,283,000 after acquiring an additional 56,627 shares during the last quarter. Finally, Orion Porfolio Solutions LLC grew its holdings in Northrop Grumman by 244.1% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 56,265 shares of the aerospace company’s stock worth $28,131,000 after acquiring an additional 39,916 shares in the last quarter. Institutional investors and hedge funds own 83.40% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Truist Financial reiterated a “hold” rating and issued a $623.00 target price (down from $688.00) on shares of Northrop Grumman in a report on Friday, January 9th. BTIG Research upped their price target on Northrop Grumman from $630.00 to $680.00 and gave the stock a “buy” rating in a research report on Wednesday, October 22nd. Deutsche Bank Aktiengesellschaft set a $700.00 target price on shares of Northrop Grumman and gave the stock a “buy” rating in a research report on Wednesday, October 8th. BNP Paribas Exane started coverage on Northrop Grumman in a research note on Tuesday, November 18th. They issued an “outperform” rating and a $710.00 price objective for the company. Finally, Bank of America upped their price target on shares of Northrop Grumman from $685.00 to $750.00 and gave the company a “buy” rating in a report on Wednesday. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $664.11.

Northrop Grumman News Summary

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

• Positive Sentiment: Q4 beat on EPS and revenue growth — NOC reported stronger‑than‑expected Q4 earnings, with EPS above consensus, revenue up ~9.6% YoY, expanded margins and materially higher operating cash flow/free cash flow, underpinning the stock’s upward move. QuiverQuant: Q4 release
• Positive Sentiment: Record backlog and segment strength — backlog printed near $95.7B with outsized growth in Aeronautics (double‑digit) and gains across Mission Systems, Defense and Space, supporting multi‑year revenue visibility. Benzinga: backlog coverage
• Positive Sentiment: Technical/buy signals and analyst momentum — trading‑flow alerts and a breakout confirmed by the earnings release drew short‑term inflows; several analysts maintain upbeat targets, giving technical follow‑through fuel. MarketBeat: buy signal & momentum
• Neutral Sentiment: Geopolitical backdrop supporting defense demand — outlets cite heightened geopolitical uncertainty as a tailwind for defense spending that benefits NOC’s product mix, but timing and contract cadence remain execution drivers. Reuters: demand backdrop
• Negative Sentiment: Cautious FY‑2026 guidance — NOC set FY‑2026 EPS and revenue ranges slightly below consensus, which could cap near‑term upside until management demonstrates easy backlog conversion into revenue. Yahoo Finance: guidance details
• Negative Sentiment: Buyback pause tied to B‑21 ramp — management said it’s pausing buybacks as it expects an agreement to accelerate B‑21 production; that trade‑off supports long‑term program value but reduces an immediate shareholder‑return lever. DefenseDaily: B-21/ buyback note
• Negative Sentiment: Insider selling noted — recent open‑market insider sales have been reported, a signal some investors monitor for near‑term conviction. QuiverQuant: insider activity

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.