Northrop Grumman (NYSE:NOC) Stock Jumps 7.2% Following Earnings Beat
by Sarita Garza · The Markets DailyNorthrop Grumman Corporation (NYSE:NOC – Get Free Report) shares rose 7.2% during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $545.44 and last traded at $547.4890. Approximately 413,739 shares changed hands during trading, a decline of 55% from the average session volume of 916,945 shares. The stock had previously closed at $510.65.
The aerospace company reported $7.89 earnings per share for the quarter, beating the consensus estimate of $7.18 by $0.71. The firm had revenue of $11.12 billion for the quarter, compared to analyst estimates of $11.14 billion. Northrop Grumman had a net margin of 10.48% and a return on equity of 24.25%. The company’s revenue for the quarter was up 6.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $7.67 EPS.
Northrop Grumman Announces Dividend
The business also recently declared a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Monday, August 31st were issued a dividend of $2.47 per share. This represents a $9.88 annualized dividend and a dividend yield of 1.8%. The ex-dividend date was Monday, August 31st. Northrop Grumman’s payout ratio is currently 31.39%.
More Northrop Grumman News
Here are the key news stories impacting Northrop Grumman this week:
- Positive Sentiment: Northrop Grumman reported third-quarter adjusted earnings of $7.89 per share, above analyst expectations of roughly $7.18-$7.22. Revenue rose 6.7% year over year to $11.12 billion, broadly in line with estimates. Reuters article
- Positive Sentiment: The company raised its 2026 adjusted EPS outlook to $29.35-$29.75 and increased its segment operating-income guidance midpoint by $65 million, while maintaining sales guidance of $43.75-$44.25 billion. RTTNews article
- Positive Sentiment: Backlog reached a record $109.6 billion, supported by $16.4 billion in quarterly awards. The backlog strengthens visibility into future revenue and reinforces the benefit of sustained defense spending. Seeking Alpha article
- Positive Sentiment: Growth was broad-based: aeronautics sales increased 14%, defense sales rose 12%, and mission and space sales advanced 2%. Operating cash flow also increased 12% to $1.745 billion. Wall Street Journal article
- Neutral Sentiment: At approximately $510.87, NOC remained below its 50-day and 200-day moving averages of $523.85 and $551.28, respectively, suggesting that the earnings reaction had not fully reversed recent technical weakness.
- Negative Sentiment: A broader retreat in AI and technology stocks could limit gains in the defense contractor, even though NOC’s results were company-specific and fundamentally favorable. Market Retreats from AI Dead Cat Bounce article
- Negative Sentiment: Recent disclosed insider activity showed 21 sales and no purchases over six months, a modest sentiment concern, although the reported transactions were small relative to the company’s market value.
Wall Street Analysts Forecast Growth
A number of equities analysts have recently weighed in on the stock. Weiss Ratings raised shares of Northrop Grumman from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, October 8th. Jefferies Financial Group reduced their price objective on Northrop Grumman from $620.00 to $580.00 and set a “hold” rating for the company in a research report on Friday, June 26th. BNP Paribas Exane lowered their target price on Northrop Grumman from $640.00 to $540.00 and set an “outperform” rating on the stock in a research note on Tuesday, October 6th. JPMorgan Chase & Co. lowered their target price on Northrop Grumman from $635.00 to $600.00 and set a “neutral” rating on the stock in a research note on Thursday, July 23rd. Finally, Rothschild & Co Redburn initiated coverage on Northrop Grumman in a research report on Tuesday, October 6th. They issued a “buy” rating and a $680.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Northrop Grumman has a consensus rating of “Moderate Buy” and a consensus target price of $641.91.
Get Our Latest Stock Analysis on NOC
Insider Buying and Selling at Northrop Grumman
In related news, Director Mark Welsh, III sold 95 shares of the firm’s stock in a transaction that occurred 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 transaction, the director directly owned 4,393 shares of the company’s stock, valued at approximately $2,405,299.29. This trade represents a 2.12% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.21% of the company’s stock.
Institutional Investors Weigh In On Northrop Grumman
A number of large investors have recently added to or reduced their stakes in NOC. Financial Life Planners bought a new position in shares of Northrop Grumman in the first quarter valued at approximately $30,000. Whipplewood Advisors LLC boosted its holdings in shares of Northrop Grumman by 380.0% during the 1st quarter. Whipplewood Advisors LLC now owns 48 shares of the aerospace company’s stock worth $33,000 after buying an additional 38 shares during the period. Perkins Coie Trust Co bought a new stake in shares of Northrop Grumman during the 2nd quarter worth $29,000. Plato Investment Management Ltd bought a new stake in shares of Northrop Grumman during the 2nd quarter worth $30,000. Finally, Navigoe LLC bought a new stake in shares of Northrop Grumman during the 2nd quarter worth $30,000. Institutional investors own 83.40% of the company’s stock.
Northrop Grumman Stock Up 6.9%
The business’s 50 day moving average is $523.85 and its 200-day moving average is $551.28. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.06 and a current ratio of 1.17. The firm has a market capitalization of $77.56 billion, a price-to-earnings ratio of 17.35, a price-to-earnings-growth ratio of 3.05 and a beta of -0.11.
About Northrop Grumman
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.