Northrop Grumman Corporation (NOC) AI Stock Analysis

Northrop Grumman Corporation is a global aerospace and defense company specializing in the design, development, and manufacture of advanced aircraft and defense systems. Its Aeronautics Systems segment creates sophisticated aircraft systems, including unmanned autonomous systems, strategic long-range strike aircraft, and airborne command systems. The Defense Systems segment designs and produces weapons and mission systems, such as precision strike weapons, propulsion systems, and precision munitions, alongside life cycle support across air, sea, and ground platforms. Additionally, the Mission Systems segment delivers cyber, command, control, communications, intelligence, radar, electro-optical/infrared sensors, and electronic warfare systems.

Northrop Grumman expanded revenue from $35.67B in FY2021 to $41.95B in FY2025, reflecting a 5-year revenue CAGR of 2.7%. Net income moved from $7.00B in FY2021 to $2.06B in FY2023, before recovering to $4.18B in FY2025 with an operating margin of 10.2% and EPS of $26.37. Free cash flow climbed to $3.31B in FY2025, up from $2.15B in FY2021. Over the trailing twelve months ending June 30, 2026, revenue stood at $42.89B with a profit margin of 10.5%. In the latest quarter ended June 30, 2026, quarterly revenue grew 5.1% year-over-year, while quarterly earnings declined 5.8%.

As of June 30, 2026, Northrop Grumman held $2.31B in cash and short-term investments against total debt of $16.29B, resulting in net debt of $13.98B. The company recorded shareholders' equity of $17.88B and total assets of $50.76B, with a current ratio of 1.17 and a debt-to-equity ratio of 0.91. During FY2025, operating cash flow reached $4.76B, which funded capital expenditures of $1.45B, share buybacks of $1.62B, and dividends paid of $1.29B. Share count decreased 11.2% over the 5-year period.

Northrop Grumman trades at a trailing P/E of 16.5x and a forward P/E of 17.0x, below the median of its S&P 500 Industrials peers of 28.5x and 20.7x. Its enterprise value stands at $87.06B, corresponding to an EV to EBITDA ratio of 11.7x compared to the peer median of 17.7x. The company's price-to-sales multiple is 1.7x versus the peer median of 3.3x. Over the past year, the stock fell 11.8%, trailing the S&P 500 return of 16.8%, and gained 42.6% over five years compared to 83.0% for the S&P 500.

Northrop Grumman offers a forward annual dividend of $9.88 per share, representing a dividend yield of 1.90% with a payout ratio of 33.3%. The company distributes dividends quarterly and has paid dividends for 45 consecutive years. Over the past five years, the dividend grew at an annualized rate of 9.7%, with the most recent ex-dividend date occurring on August 31, 2026.

Wall Street sentiment includes 11 Strong Buy, 3 Buy, 11 Hold, 1 Sell, and 0 Strong Sell ratings. The mean price target is $619.08, indicating an upside of 19.1% from the October 16, 2026 closing price of $519.86. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $28.98 and revenue of $44.05B. The company beat EPS estimates in each of the last 4 quarters, with next earnings scheduled for October 20, 2026.

This page is an AI-written research summary of Northrop Grumman Corporation (NOC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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