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Northrop Grumman Corporation (NOC) Stock Analysis

By Nova Skye | AltStation.io | Updated February 07, 2026

Price

$708.44

Change

+1.71%

Market Cap

$101.11B

Avg Volume

883.7K

Company Overview

Northrop Grumman Corporation (NOC) specializes in aerospace and defense technology, providing a wide array of products and services to government and military customers. Their operations are divided into four main segments: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. They produce cutting-edge technologies such as unmanned aircraft, missile defense systems, integrated command and control systems, and spacecraft, primarily targeting U.S. defense and international allies.

Northrop Grumman is a market leader in the aerospace and defense sector, often outperforming competitors like Lockheed Martin and Raytheon Technologies. Their competitive strength comes from a diversified product portfolio, strong government relationships, and advanced R&D capabilities. However, they face challenges such as cost overruns on projects and increasing competition from emerging defense technology firms. The recent shift towards more integrated defense solutions and cyber capabilities could impact their market position positively or negatively, depending on execution.

Currently, Northrop Grumman is in a growth phase, fueled by increased defense spending and new contract wins. They have recently focused on modernizing capabilities, particularly around hypersonic systems and advanced UAVs, aligning with government needs for next-gen defense technologies. Their commitment to innovation is reflected in significant R&D investments, positioning them well in a competitive marketplace. This proactive approach could lead to sustained revenue growth and market share expansion in the coming years.

Key Financials

Market Cap

$101.11B

Revenue

$41.95B

EBITDA

$6.82B

Gross Margin

19.8%

Profit Margin

10.0%

Revenue Growth

9.6%

Total Cash

$4.40B

Total Debt

$17.88B

Free Cash Flow

$2.90B

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

24.34

Forward P/E

23.42

Beta

0.04

52-Week High

$710.23

52-Week Low

$426.24

EPS

$29.11

50-Day Avg

$607.53

200-Day Avg

$561.78

Price/Book

6.03

Technical Analysis

The stock chart for Northrop Grumman Corporation (NOC) shows a strong upward trend over the past 52 weeks, reflecting a 52.1% increase, with consistent price appreciation. Key support is observed around $450, which served as a base during the earlier part of the period, while resistance is evident near $709, where the current price sits. There are notable ascending price patterns, particularly a series of higher lows and higher highs, indicating bullish sentiment throughout the year. Recent momentum has been strong, particularly in the last few weeks, as prices approached all-time highs, reinforcing the upward trajectory. Currently, at $708.44, the price is close to the 52-week high of $709, suggesting that NOC is currently operating at a peak performance level, which heightened investor confidence and could lead to potential breakout scenarios.

Recent News and Developments

Market Update

Here are the latest news and developments for Northrop Grumman Corporation (NOC) stock in the past week (February 1-7, 2026):

1. Northrop Grumman Reports Strong Q4 2025 Earnings and Provides FY 2026 Guidance

Northrop Grumman announced robust financial results for the fourth quarter of 2025, with profit and revenue surpassing previous year’s figures. The company reported diluted earnings per share of $7.23, exceeding analyst consensus, and total revenue climbed to $11.71 billion, marking a significant increase from the prior year. For the full year 2025, Northrop Grumman achieved a revenue of US$41.954 billion and a net income of US$4.182 billion. Looking ahead, the company issued its fiscal year 2026 earnings per share guidance in the range of $27.40 to $27.90 and projected sales between $43.5 billion and $44 billion, though this sales forecast was slightly below some Wall Street expectations.

2. Analysts Revise Price Targets and Maintain Positive Ratings for Northrop Grumman

In the past week, several analyst firms adjusted their price targets for Northrop Grumman, largely maintaining a positive outlook. On February 2, 2026, Jefferies set a price target of $690.00. Bernstein raised its price target to $765.00 from $727.00 on February 4, 2026, while upholding a “Market Perform” rating, citing favorable trends expected to continue into 2026. Further supporting a positive sentiment, RBC Capital maintained a “Buy” rating with a $750 price target, and BTIG reiterated a “Strong Buy” rating with an $815 price target on February 5, 2026, emphasizing Northrop Grumman’s innovative capabilities and substantial contract backlog. The consensus among analysts for NOC stock remains a “Buy” rating.

Market Sentiment and Analyst Recommendations

Bull Case

NOC is firing on all cylinders. Revenue grew 9.6% to $41.95B and the company just beat Q4 earnings while raising full-year 2026 guidance to $43.5-44B in sales, which implies another 3.7-4.9% growth ahead. The 52-week surge of 51.9% isn’t just momentum — it’s backed by real contract wins in microelectronics and threat training systems, plus a substantial backlog that de-risks future revenue. At a P/E of 24.34, NOC trades at a reasonable premium for a defense contractor with 9.6% organic growth and a $4.182B net income run rate. The analyst consensus is overwhelmingly bullish with 21 buy ratings and an average target of $721.44, implying 1.8% upside from here, but BTIG’s $815 target suggests 15% upside if execution holds. Management’s EPS guidance of $27.40-27.90 for 2026 signals confidence, and with $4.4B in cash against $17.88B debt, the balance sheet can fund dividends and buybacks without stress.

Bear Case

The stock is priced at the 52-week high of $709, leaving almost no margin of safety. A P/E of 24.34 is stretched for a cyclical defense contractor, especially when the broader market trades closer to 20x. The 2026 sales guidance of $43.5-44B came in below some Wall Street expectations, which is a red flag for a company already trading at peak valuations. Institutional insiders are already rotating out — Appleton Partners dumped 74.1% of its position, and director Mark Welsh sold shares on February 2, suggesting insiders don’t see much upside at these levels. The debt-to-cash ratio of 4.06x is manageable but limits financial flexibility if defense spending slows or geopolitical tailwinds fade. Government spending cycles are unpredictable, and any delay in contract awards or shift in Pentagon priorities could crater the stock fast.

What to Watch

Monitor the 2026 contract pipeline closely. The company’s growth hinges on sustained government spending, so any major contract award or delay in Q1 and Q2 will signal whether the $43.5-44B sales guidance is achievable. Watch for the next earnings report in April 2026 to see if NOC can deliver on the promised 3.7-4.9% revenue growth and whether EPS lands in the $27.40-27.90 range. Track the stock’s ability to hold above $700 — a break below that level would invalidate the bullish chart pattern and likely trigger a retest of $650. Pay attention to defense spending debates in Congress and any shifts in Pentagon priorities toward space, AI, or unmanned systems, as these could affect Northrop’s mix of business. Finally, watch insider trading activity closely. If more directors or executives dump shares at these levels, it’s a clear signal that insiders lack conviction on further upside.

Analyst Consensus

BUY

Based on 21 analyst opinions

Low Target

$587.22

Mean Target

$721.44

High Target

$815.00

Earnings and Financial Data

Sector

Industrials

Industry

Aerospace & Defense

Employees

95,000

Earnings & Dividends

Next Earnings

Apr 21, 2026

EPS (Trailing)

$29.11

Dividend Yield

133.0%

Payout Ratio

30.9%

Frequently Asked Questions

Is Northrop Grumman (NOC) a good stock to buy?

Yes, NOC holds a strong “BUY” recommendation from analysts, with a target price set at $721.44. The stock is currently priced at $708.44, offering a potential upside of about 1.8%.

What is Northrop Grumman’s price-to-earnings (P/E) ratio?

Northrop Grumman has a P/E ratio of 24.34, which is relatively high compared to the broader market. This suggests that investors expect strong growth from the company, but it may also indicate that the stock is fully valued.

Does Northrop Grumman pay a dividend?

Yes, NOC has an impressive dividend yield of 133.0%. This makes it appealing for income-focused investors, although it’s important to assess whether this yield is sustainable.

What is NOC’s 52-week price range?

The 52-week range for Northrop Grumman is $426.24 to $710.23. This range indicates significant price movement, emphasizing the potential for both gains and risks.

What is the market capitalization of Northrop Grumman?

Northrop Grumman has a market cap of $101.11 billion. This positions it as a major player in the aerospace and defense sector, reflecting its stability and growth potential.

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Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis and opinions expressed are those of AltStation.io and should not be relied upon as the sole basis for investment decisions. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. Updated February 07, 2026.