Northrop Grumman Corp.

Northrop Grumman Corp.

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Market Cap$80.06B
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Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Northrop Grumman Corp.Northrop Grumman Corp.17.51.64%27%1.81

Earnings Call Q1 2026

April 21, 2026 - AI Summary

Strong Demand and Financial Performance: Northrop Grumman's first-quarter organic sales increased by 5% year-over-year, totaling $9.9 billion, supported by robust demand for defense systems, particularly in munitions and modernization efforts, contributing to solid operating income of over $1 billion and improved segment margins at 10.8%.
B-21 Production Acceleration: The company successfully reached an agreement with the Air Force to increase the production capacity of the B-21 by 25%. This agreement is anticipated to enhance profitability on LRIP units and may lead to higher-than-expected returns over the multiyear production timeline, demonstrating strong operational trust from the government.
Sentinel Program Growth: The Sentinel program has gained momentum with expectations for low double-digit growth in the current fiscal year. Milestone B is expected to be reached later this year, with initial operating capability anticipated in the early 2030s. This program is projected to grow from 6-7% of revenue to nearly 10% as production ramps up.

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$704.00

Target Price by Analysts

33.8% upsideNorthrop Grumman Target Price DetailsTarget Price
$939.27

Current Fair Value

78.5% upside

Undervalued by 78.5% based on the discounted cash flow analysis.

Share Statistics

Market cap$80.06 Billion
Enterprise Value$95.05 Billion
Dividend Yield$9.24 (1.64%)
Earnings per Share$29.14
Beta-0.11
Outstanding Shares142,100,000

Return

Return on Equity26.74%ROE
Return on Assets9.15%
Return on Invested Capital16.10%

Valuation & Multiples

P/E Ratio17.5P/E Ratio
PEG21.37PEG
Price to Sales1.77Price to Sales
Price to Book Ratio4.38Price to Book Ratio
Enterprise Value to Revenue2.24
Enterprise Value to EBIT15.87
Enterprise Value to Net Income20
Total Debt to Enterprise0.18
Debt to Equity1Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
April 28, 2026
EPS Estimate
$6.09
Average shareholder expectation
Revenue Estimate
-
Average shareholder expectation

Next Earnings Call

Expected Date
July 23, 2026
EPS Estimate
$6.81
Average shareholder expectation
Revenue Estimate
$10.79 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.9766 19.41%
Total Calls726,500 12.08%
Total Puts709,527 26.66%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %83.05% 0.80%
Total Invested$80.41B 20.37%
Investors Holding1,918 72.00%

ESG Score

No data

About Northrop Grumman Corp.

90,000 employees
CEO: Wesley Bush

Northrop Grumman solves the toughest problems in space, aeronautics, defense and cyberspace to meet the ever evolving needs of our customers worldwide. Its 90,000 employees define possible every day using science, technology and engineer...

Relevant Senate Committees

Appropriations

This committee, particularly its Defense Subcommittee, directly allocates specific discretionary federal spending. These allocations determine the precise cash flow for defense programs and directly fund Northrop Grumman's contracts and projects.

Armed Services

This is the primary committee for defense policy, directly authorizing the annual National Defense Authorization Act (NDAA) and overseeing the Department of Defense, Northrop Grumman's main customer. Members have direct insight into future defense programs and funding.

Select Committee on Intelligence

Northrop Grumman is a significant contractor for the Intelligence Community and provides cybersecurity solutions. Members of this committee receive classified briefings that could directly inform decisions affecting intelligence priorities and funding, creating high potential for non-public material information.

Commerce, Science, and Transportation

This committee directly impacts Northrop Grumman through its oversight of the aerospace industry (FAA regulations), scientific research, and telecommunications, all crucial areas for the company's aeronautics, space, and cyberspace segments.

Homeland Security and Governmental Affairs

As a major federal contractor, Northrop Grumman is directly impacted by this committee's oversight of government procurement and efficiency, which influences contract awards and operational regulations.