Northrop Grumman (NYSE:NOC) Releases Quarterly Earnings Results, Beats Expectations By $0.71 EPS

Northrop Grumman (NYSE:NOC) posted its quarterly earnings results on Tuesday. The aerospace company reported $7.89 earnings per share for the quarter, beating the consensus estimate of $7.18 by $0.71, FiscalAI reports. The firm had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.14 billion. Northrop Grumman had a net margin of 10.48% and a return on equity of 24.25%.

Northrop Grumman Stock Down 1.7%

Shares of NYSE NOC opened at $510.87 on Tuesday. The company has a current ratio of 1.17, a quick ratio of 1.06 and a debt-to-equity ratio of 0.81. The stock has a market capitalization of $72.56 billion, a PE ratio of 16.23, a price-to-earnings-growth ratio of 3.05 and a beta of -0.11. The stock’s fifty day simple moving average is $523.85 and its two-hundred day simple moving average is $551.28. Northrop Grumman has a 12-month low of $470.06 and a 12-month high of $774.00.

Northrop Grumman Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 16th. Shareholders of record on Monday, August 31st were given a dividend of $2.47 per share. This represents a $9.88 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend was Monday, August 31st. Northrop Grumman’s dividend payout ratio (DPR) is 31.39%.

Northrop Grumman News Summary

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

• Positive Sentiment: Profit and outlook exceeded expectations. Third-quarter diluted EPS was $7.89, above the approximately $7.18–$7.19 analyst consensus. Northrop also raised its 2026 midpoint guidance for segment operating income by $65 million and adjusted EPS by $0.70, now targeting $29.35–$29.75. The company’s 2027 outlook reportedly calls for additional growth. Northrop Grumman’s 2027 Earnings Outlook Calls for More Growth
• Positive Sentiment: Demand and cash generation remained strong. Third-quarter sales increased 7% year over year to $11.12 billion, net awards totaled $16.4 billion, and backlog reached a record $109.6 billion. Operating cash flow rose 12% to $1.745 billion, supporting the case for durable defense-sector demand. Northrop lifts 2026 profit forecast on strong defense demand, record backlog
• Neutral Sentiment: Investor focus now shifts to management commentary. Northrop scheduled an earnings call to discuss the results, including its updated 2026 guidance and longer-term growth outlook. Northrop Grumman Releases Third Quarter 2026 Financial Results
• Negative Sentiment: Revenue and margins were less impressive than the EPS headline. Sales were slightly below the $11.2 billion consensus, while operating income rose only 2% despite 7% sales growth, implying pressure on operating margins. Reports also note that insiders recorded sales rather than purchases in recent months, which may add to investor caution.

Wall Street Analyst Weigh In

Several research analysts have commented on NOC shares. UBS Group raised their price objective on Northrop Grumman from $685.00 to $704.00 and gave the stock a “buy” rating in a report on Tuesday, September 8th. Susquehanna cut their price target on Northrop Grumman from $785.00 to $655.00 and set a “positive” rating on the stock in a research note on Wednesday, July 22nd. BNP Paribas Exane decreased their price objective on Northrop Grumman from $640.00 to $540.00 and set an “outperform” rating for the company in a report on Tuesday, October 6th. TD Cowen lowered their price objective on shares of Northrop Grumman from $590.00 to $540.00 and set a “hold” rating for the company in a research note on Friday, October 9th. Finally, The Goldman Sachs Group increased their target price on shares of Northrop Grumman from $533.00 to $538.00 and gave the stock a “neutral” rating in a report on Monday, July 27th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $641.91.

Insider Activity

In other news, Director Mark Welsh, III sold 95 shares of the business’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $547.53, for a total value of $52,015.35. Following the completion of the transaction, the director directly owned 4,393 shares of the company’s stock, valued at approximately $2,405,299.29. The trade was a 2.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.21% of the company’s stock.

Northrop Grumman Company Profile

Northrop Grumman Corporation (NYSE:NOC) is a global aerospace and defense company that develops and produces systems for government and commercial customers, with the U.S. government representing its primary customer base. The company operates across aerospace, defense, space, cybersecurity and advanced technology markets.

Its products and services include military aircraft and autonomous systems, space systems and satellites, missile defense technologies, command-and-control systems, cyber solutions, sensors, communications networks and other mission-critical systems.