Northrop Grumman Corp.

Northrop Grumman Corp.

NOC

Get informed when a big investor buys or sells

+ Follow
Market Cap$77.07B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Northrop Grumman Corp.Northrop Grumman Corp.17.21.73%25%1.81.1

Earnings Call Q2 2026

July 21, 2026 - AI Summary

Strong Q2 results; backlog hits record and book-to-bill well above target - Q2 awards/bookings: $20B net awards; book-to-bill 1.84x. - Backlog: up 17% YoY to $105B (record high). - Sales: $10.9B, +5% YoY and +10% sequential. - Context (good): management emphasized converting robust demand into orders and accelerating sales momentum in 2H.
Raised 2026 guidance (key forecast upgrades) - Sales (2026): raised to $44B midpoint (range $43.75B–$44.25B) = >5% organic growth. - Book-to-bill (2026): now expects ≥ 1.25x for the full year. - EPS (2026, mark-to-market adjusted): raised by +$1.20 to $28.60–$29.10 (effective tax rate targeted mid-14%). - Adjusted free cash flow (2026): $3.1B–$3.5B reaffirmed (includes ~$1.85B B-21 asset sale cash receipts, with timing shifts between this year/other program payments). - Capital expenditures: expects ~$1.85B CapEx in 2026; CapEx ~4.5% of sales in 2027–2028 (directionally refined later).
Segment performance: solid topline, but margins pressured by program cost/EAC adjustments (notably DS & Space) - Aeronautics (AS): strong—margins up; sales +13% (driven by B-21/Takamo/mature programs), margin ~10.3%. - Defense Systems (DS): sales up +2% organic, operating margin 7.5%, but Q2 was dragged by ~$68M unfavorable EAC on SAW (higher projected qualification/design costs). - DS margin excluding EAC impacts was ~11%, and management expects 2H margins >11% (sentinel/IBCS/weapons ramp). - Space: sales +4%, operating margin 8.6% with unfavorable EAC on GEM 63XL (higher estimated costs/materials). - Management expects the rest of Space to support 11%+ 2H margins, despite lowering full-year Space margin outlook. - Surprising/negative: even with strong bookings and growing backlog, margin volatility from development/estimate changes remains a key near-term swing factor.

Exclusive for Stockcircle Pro members

Sign upSign Up
$634.82

Target Price by Analysts

17% upsideNorthrop Grumman Target Price DetailsTarget Price
$835.54

Current Fair Value

54% upside

Undervalued by 54% based on the discounted cash flow analysis.

Share Statistics

Market cap$77.07 Billion
Enterprise Value$94.87 Billion
Dividend Yield$9.40 (1.73%)
Earnings per Share$29.14
Beta-0.1
Outstanding Shares142,100,000

Return

Return on Equity25.14%ROE
Return on Assets8.86%
Return on Invested Capital15.28%

Valuation & Multiples

P/E Ratio17.2P/E Ratio
PEG-252.41PEG
Price to Sales1.8Price to Sales
Price to Book Ratio4.34Price to Book Ratio
Enterprise Value to Revenue2.21
Enterprise Value to EBIT16.59
Enterprise Value to Net Income21
Total Debt to Enterprise0.21
Debt to Equity1.12Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
July 28, 2026
EPS Estimate
$6.83
Average shareholder expectation
Revenue Estimate
$10.78 B
Average shareholder expectation

Next Earnings Call

Expected Date
October 20, 2026
EPS Estimate
$7.13
Average shareholder expectation
Revenue Estimate
$11.12 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio7.6667▲ 669.00%
Total Calls600▼ 99.92%
Total Puts4,600▼ 99.35%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %3.19%▼ 79.91%
Total Invested$2.21B▼ 97.26%
Investors Holding822▼ 1109.00%

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.