Zacks Research Has Pessimistic Outlook of NOC Q1 Earnings

Northrop Grumman Corporation (NYSE:NOC) – Equities researchers at Zacks Research reduced their Q1 2027 EPS estimates for Northrop Grumman in a research report issued on Tuesday, January 6th. Zacks Research analyst Team now forecasts that the aerospace company will earn $5.63 per share for the quarter, down from their previous forecast of $5.65. 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 2027 earnings at $7.87 EPS and FY2027 earnings at $30.51 EPS.

A number of other equities analysts have also recently weighed in on the company. Truist Financial reissued a “hold” rating and issued a $623.00 price target (down previously from $688.00) on shares of Northrop Grumman in a research note on Friday. BNP Paribas upgraded shares of Northrop Grumman to a “strong-buy” rating in a report on Tuesday, November 18th. 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. Morgan Stanley restated an “overweight” rating and issued a $714.00 price target on shares of Northrop Grumman in a research report on Tuesday, December 16th. Finally, Alembic Global Advisors raised shares of Northrop Grumman from a “neutral” rating to an “overweight” rating and set a $662.00 price objective for the company in a research note on Monday, December 15th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $647.35.

Northrop Grumman Stock Performance

Shares of NYSE NOC opened at $619.31 on Thursday. The stock’s fifty day simple moving average is $570.08 and its 200 day simple moving average is $571.51. The stock has a market capitalization of $88.39 billion, a price-to-earnings ratio of 22.28, a PEG ratio of 4.79 and a beta of 0.05. The company has a quick ratio of 0.98, a current ratio of 1.11 and a debt-to-equity ratio of 0.95. Northrop Grumman has a 52-week low of $426.24 and a 52-week high of $640.90.

Northrop Grumman (NYSE:NOC) last posted its quarterly earnings results on Tuesday, October 21st. The aerospace company reported $7.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.43 by $1.24. Northrop Grumman had a net margin of 9.82% and a return on equity of 25.49%. The firm had revenue of $10.42 billion for the quarter, compared to analyst estimates of $10.68 billion. During the same quarter in the previous year, the business posted $7.00 earnings per share. The firm’s quarterly revenue was up 4.3% compared to the same quarter last year. Northrop Grumman has set its FY 2025 guidance at 25.650-26.050 EPS.

Institutional Investors Weigh In On Northrop Grumman

A number of hedge funds and other institutional investors have recently made changes to their positions in NOC. First United Bank & Trust lifted its stake in shares of Northrop Grumman by 641.0% in the second quarter. First United Bank & Trust now owns 778 shares of the aerospace company’s stock worth $389,000 after buying an additional 673 shares during the last quarter. Mitchell Mcleod Pugh & Williams Inc. grew its stake in Northrop Grumman by 29.4% in the 2nd quarter. Mitchell Mcleod Pugh & Williams Inc. now owns 1,848 shares of the aerospace company’s stock valued at $924,000 after buying an additional 420 shares during the last quarter. Mawer Investment Management Ltd. bought a new position in Northrop Grumman in the 2nd quarter worth $491,985,000. Oak Thistle LLC acquired a new position in Northrop Grumman during the 3rd quarter worth $1,015,000. Finally, Merit Financial Group LLC lifted its position in Northrop Grumman by 74.5% during the 3rd quarter. Merit Financial Group LLC now owns 11,060 shares of the aerospace company’s stock worth $6,739,000 after acquiring an additional 4,721 shares during the last quarter. 83.40% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, Director Mark A. Welsh III sold 97 shares of the stock in a transaction on Monday, November 24th. The stock was 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 ownership of the stock. The sale 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 Northrop Grumman stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $615.00, for a total value of $1,845,000.00. Following the sale, the chief executive officer directly owned 191,602 shares of the company’s stock, valued at approximately $117,835,230. The trade was a 1.54% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 10,097 shares of company stock valued at $6,099,716. Insiders own 0.23% of the company’s stock.

Northrop Grumman Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, December 17th. Shareholders of record on Monday, December 1st were paid a $2.31 dividend. This represents a $9.24 annualized dividend and a yield of 1.5%. The ex-dividend date was Monday, December 1st. Northrop Grumman’s dividend payout ratio is currently 33.24%.

Key Stories Impacting Northrop Grumman

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

• Positive Sentiment: Trump floated a dramatic $1.5 trillion 2027 defense budget, which lifted defense stocks and boosted investor expectations for higher government spending that would benefit large contractors like Northrop. Trump proposes massive increase in 2027 defense spending to $1.5T
• Positive Sentiment: Northrop won a Navy contract (~$94.3M) for solid rocket motors (SSRM), adding near-term revenue and strengthening backlog in propulsion/ordnance. Northrop Grumman wins $94.3 million Navy contract for rocket motors
• Positive Sentiment: Northrop was competitively awarded the Marine Corps CCA work (with Kratos’ Valkyrie UAS) to rapidly develop collaborative combat aircraft — a program win that supports future unmanned/autonomy revenue. Northrop Grumman to Rapidly Develop Marine Corps CCA with Kratos’ Valkyrie UAS
• Positive Sentiment: Northrop launched a digitally enhanced ICBM target vehicle, highlighting product development and tech leadership that can support future DoD awards. Northrop Grumman launches digitally enhanced ICBM target vehicle
• Positive Sentiment: Analysts and research services note Northrop’s strong earnings-surprise history and Zacks/other research highlighting the company as a potential beat ahead of quarterly results, supporting bullish expectations. Will Northrop Grumman (NOC) Beat Estimates Again in Its Next Earnings Report?
• Neutral Sentiment: Technical indicators (golden cross / rising relative strength) are signaling short-term momentum, which can attract technical buyers ahead of earnings. Northrop Grumman (NOC) Just Flashed Golden Cross Signal
• Neutral Sentiment: Zacks issued small EPS revisions (mixed downgrades/raises) that mostly keep FY2027 outlook stable but add estimate noise near the next report. MarketBeat NOC coverage (Zacks estimates)
• Negative Sentiment: President Trump signed/ordered curbs on buybacks/dividends and signaled caps on executive pay for underperforming contractors — a material policy risk that could limit shareholder returns and triggered selling pressure across the sector. Trump signs order to block defense companies from buying back stock until arms production improves
• Negative Sentiment: Northrop’s CEO disclosed recent sales of several thousand shares (Jan. 5–6), which some investors view negatively amid heightened policy scrutiny. SEC Form 4 — Kathy J. Warden
• Negative Sentiment: After Trump’s comments and orders, intraday headlines showed immediate selling pressure on defense names, which weighed on Northrop despite positive contract/news flow. Northrop Grumman Stock Drops After Trump Warns Against Buybacks Over Investment

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.