FY2026 EPS Forecast for Northrop Grumman Lowered by Analyst

Northrop Grumman Corporation (NYSE:NOC) – Stock analysts at Zacks Research decreased their FY2026 earnings estimates for Northrop Grumman in a research report issued to clients and investors on Thursday, January 8th. Zacks Research analyst Team now anticipates that the aerospace company will post earnings per share of $28.43 for the year, down from their previous estimate of $28.47. 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 Q4 2026 earnings at $8.33 EPS, Q1 2027 earnings at $5.62 EPS, Q4 2027 earnings at $8.67 EPS and FY2027 earnings at $30.45 EPS.

A number of other analysts also recently weighed in on NOC. Morgan Stanley reissued an “overweight” rating and set a $714.00 target price on shares of Northrop Grumman in a research report on Tuesday, December 16th. Alembic Global Advisors raised shares of Northrop Grumman from a “neutral” rating to an “overweight” rating and set a $662.00 target price for the company in a research note on Monday, December 15th. Citigroup began coverage on shares of Northrop Grumman in a research report on Thursday, December 11th. They set a “buy” rating and a $654.00 price target on the stock. Deutsche Bank Aktiengesellschaft set a $700.00 price target on Northrop Grumman and gave the stock a “buy” rating in a report on Wednesday, October 8th. Finally, BNP Paribas Exane began coverage on Northrop Grumman in a research report on Tuesday, November 18th. They set an “outperform” rating and a $710.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $647.35.

Northrop Grumman Price Performance

Shares of NOC opened at $619.31 on Monday. The business has a 50-day moving average of $570.08 and a 200-day moving average of $572.72. The company has a debt-to-equity ratio of 0.95, a current ratio of 1.11 and a quick ratio of 0.98. The company has a market capitalization of $88.39 billion, a price-to-earnings ratio of 22.28, a price-to-earnings-growth ratio of 5.02 and a beta of 0.05. Northrop Grumman has a 1 year low of $426.24 and a 1 year high of $640.90.

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

Hedge Funds Weigh In On Northrop Grumman

Several hedge funds have recently modified their holdings of NOC. Brighton Jones LLC boosted its position in Northrop Grumman by 176.3% in the fourth quarter. Brighton Jones LLC now owns 2,970 shares of the aerospace company’s stock worth $1,394,000 after purchasing an additional 1,895 shares during the last quarter. Bison Wealth LLC raised its stake in shares of Northrop Grumman by 5.3% during the 4th quarter. Bison Wealth LLC now owns 641 shares of the aerospace company’s stock worth $301,000 after purchasing an additional 32 shares during the period. Woodline Partners LP boosted its holdings in shares of Northrop Grumman by 367.7% in the 1st quarter. Woodline Partners LP now owns 2,516 shares of the aerospace company’s stock worth $1,288,000 after buying an additional 1,978 shares during the last quarter. Modern Wealth Management LLC grew its position in Northrop Grumman by 97.0% during the first quarter. Modern Wealth Management LLC now owns 853 shares of the aerospace company’s stock valued at $437,000 after buying an additional 420 shares during the period. Finally, RB Capital Management LLC increased its holdings in Northrop Grumman by 2.8% during the second quarter. RB Capital Management LLC now owns 3,865 shares of the aerospace company’s stock worth $1,932,000 after buying an additional 105 shares during the last quarter. Institutional investors own 83.40% of the company’s stock.

Insider Buying and Selling

In related news, Director Mark A. Welsh III sold 97 shares of Northrop Grumman stock in a transaction on Monday, November 24th. The shares were sold at an average price of $564.08, for a total value of $54,715.76. Following the completion of the sale, the director owned 4,281 shares of the company’s stock, valued at approximately $2,414,826.48. This trade represents a 2.22% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Kathy J. Warden sold 7,000 shares of the company’s stock in a transaction on Monday, January 5th. The stock was sold at an average price of $600.00, for a total transaction of $4,200,000.00. Following the transaction, the chief executive officer owned 194,602 shares in the company, valued at approximately $116,761,200. The trade was a 3.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 10,097 shares of company stock worth $6,099,716 over the last ninety days. 0.23% of the stock is owned by insiders.

Northrop Grumman Dividend Announcement

The company 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 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Monday, December 1st. Northrop Grumman’s dividend payout ratio (DPR) is 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

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.