Zacks Research Issues Optimistic Forecast for NOC Earnings

Northrop Grumman Corporation (NYSE:NOC) – Analysts at Zacks Research lifted their Q2 2026 earnings per share (EPS) estimates for Northrop Grumman in a research note issued to investors on Tuesday, January 6th. Zacks Research analyst Team now expects that the aerospace company will earn $6.92 per share for the quarter, up from their prior forecast of $6.84. The consensus estimate for Northrop Grumman’s current full-year earnings is $28.05 per share. Zacks Research also issued estimates for Northrop Grumman’s Q3 2026 earnings at $7.15 EPS, Q4 2026 earnings at $8.38 EPS, Q2 2027 earnings at $8.30 EPS and Q4 2027 earnings at $8.71 EPS.

Other research analysts have also recently issued research reports about the stock. Morgan Stanley restated an “overweight” rating and set a $714.00 target price on shares of Northrop Grumman in a research note on Tuesday, December 16th. Truist Financial raised their price target on Northrop Grumman from $625.00 to $688.00 and gave the company a “buy” rating in a report on Wednesday, October 15th. UBS Group boosted their price objective on Northrop Grumman to $770.00 and gave the company a “buy” rating in a research report on Wednesday, October 22nd. Susquehanna increased their target price on Northrop Grumman from $650.00 to $690.00 and gave the stock a “positive” rating in a research report on Wednesday, October 22nd. Finally, JPMorgan Chase & Co. lifted their target price on Northrop Grumman from $575.00 to $640.00 and gave the company a “neutral” rating in a research note on Wednesday, October 22nd. Two analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $651.18.

Northrop Grumman Price Performance

Shares of NYSE:NOC opened at $591.11 on Wednesday. The company has a market capitalization of $84.36 billion, a P/E ratio of 21.26, a P/E/G ratio of 4.79 and a beta of 0.05. Northrop Grumman has a 1-year low of $426.24 and a 1-year high of $640.90. The firm’s 50 day simple moving average is $569.39 and its two-hundred day simple moving average is $570.68. 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 (NYSE:NOC) last announced its quarterly earnings data on Tuesday, October 21st. The aerospace company reported $7.67 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.43 by $1.24. The company had revenue of $10.42 billion during the quarter, compared to the consensus estimate of $10.68 billion. Northrop Grumman had a return on equity of 25.49% and a net margin of 9.82%.The firm’s revenue was up 4.3% on a year-over-year basis. During the same period in the previous year, the company posted $7.00 EPS. Northrop Grumman has set its FY 2025 guidance at 25.650-26.050 EPS.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its stake in shares of Northrop Grumman by 0.8% in the 3rd quarter. Vanguard Group Inc. now owns 13,531,586 shares of the aerospace company’s stock valued at $8,245,066,000 after purchasing an additional 109,941 shares during the last quarter. Soundwatch Capital LLC purchased a new stake in Northrop Grumman during the 2nd quarter valued at $6,457,274,000. Geode Capital Management LLC lifted its position in Northrop Grumman by 0.5% in the second quarter. Geode Capital Management LLC now owns 3,115,519 shares of the aerospace company’s stock worth $1,554,299,000 after buying an additional 14,980 shares during the last quarter. Franklin Resources Inc. boosted its stake in Northrop Grumman by 2.2% during the third quarter. Franklin Resources Inc. now owns 2,996,284 shares of the aerospace company’s stock worth $1,825,696,000 after buying an additional 63,223 shares during the period. Finally, Ameriprise Financial Inc. boosted its stake in Northrop Grumman by 0.3% during the third quarter. Ameriprise Financial Inc. now owns 1,624,658 shares of the aerospace company’s stock worth $990,046,000 after buying an additional 4,844 shares during the period. Hedge funds and other institutional investors own 83.40% of the company’s stock.

Insiders Place Their Bets

In other news, Director Mark A. Welsh III sold 97 shares of the business’s stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $564.08, for a total value of $54,715.76. Following the sale, the director directly owned 4,281 shares in the company, valued at $2,414,826.48. The trade was a 2.22% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Kathy J. Warden sold 7,000 shares of the company’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $600.00, for a total transaction of $4,200,000.00. Following the sale, the chief executive officer owned 194,602 shares in the company, valued at $116,761,200. This represents a 3.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 10,097 shares of company stock valued at $6,099,716. 0.23% of the stock is currently owned by insiders.

Northrop Grumman Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, December 17th. Investors of record on Monday, December 1st were issued a $2.31 dividend. The ex-dividend date of this dividend was Monday, December 1st. This represents a $9.24 dividend on an annualized basis and a dividend yield of 1.6%. Northrop Grumman’s dividend payout ratio (DPR) is 33.24%.

Northrop Grumman News Summary

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

• Positive Sentiment: President Trump floated a dramatic increase in U.S. defense spending (a $1.5T 2027 target), which lifted shares across the defense complex and is the primary catalyst for today’s rally. Read More.
• Positive Sentiment: Northrop was competitively awarded the Marine Corps’ Collaborative Combat Aircraft (CCA) development work in partnership with Kratos (Valkyrie UAS), strengthening its unmanned/air-dominance pipeline. Read More.
• Positive Sentiment: Northrop also won a Navy contract for solid-rocket motors (reported ~ $94.3M), adding near-term revenue and backlog support in propulsion/ordnance. Read More.
• Positive Sentiment: Technicals and relative-strength commentary have improved ahead of Q4 results, which can reinforce momentum buying into the earnings catalyst. Read More.
• Neutral Sentiment: Analysts at Zacks issued a string of small EPS estimate tweaks (mixed raises and cuts across quarters), leaving FY outlook broadly stable but introducing some near-term forecast noise. Read More.
• Negative Sentiment: The White House signed and reiterated measures to block dividends and stock buybacks for defense firms until production shortfalls are fixed — a direct risk to Northrop’s shareholder-return profile and a source of selling pressure. Read More.
• Negative Sentiment: CEO Kathy Warden disclosed recent sales of NOC shares (multiple transactions Jan. 5–6); while small relative to her holding, insider selling amid policy headlines can be interpreted negatively by the market. Read More.
• Negative Sentiment: Markets saw an earlier pullback in defense names after the administration’s warnings on buybacks/dividends, highlighting the risk that positive budget rhetoric may be offset by restrictive policy actions. Read More.

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.