Northrop Grumman Corporation (NOC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Northrop Grumman Corporation (NOC) Industrial Operations Profile

Northrop Grumman Corporation, a prominent player in the aerospace and defense sector, delivers advanced solutions in aeronautics, defense, mission, and space systems. With a strong focus on innovation and technological superiority, the company serves government and commercial clients worldwide, maintaining a significant presence in key defense programs.

What Is the Investment Thesis for NOC?

The company's focus on advanced technologies and its alignment with long-term defense spending trends support sustained growth. With a P/E ratio of 16.45 and a profit margin of 10.8%, Northrop Grumman demonstrates financial stability. Key catalysts include ongoing government contracts and expansion in the space systems segment. However, potential risks include geopolitical uncertainties and supply chain disruptions. The company's commitment to innovation and shareholder value enhances its long-term investment appeal.

Based on FMP financials and quantitative analysis

NOC Key Highlights

Market Cap of $73.7B reflects Northrop Grumman's significant presence in the aerospace and defense industry.

• P/E Ratio of 16.45 indicates a reasonable valuation compared to its earnings.
• Profit Margin of 10.8% demonstrates efficient operations and profitability.
• Gross Margin of 20.5% highlights the company's ability to manage production costs effectively.
• Dividend Yield of 1.68% provides a steady income stream for investors.

Who Are NOC's Competitors?

NOC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are NOC's Key Strengths?

Strong market position in the aerospace and defense industry

• Diverse portfolio of products and services
• Long-term contracts with government agencies
• Technological expertise and innovation

What Are NOC's Weaknesses?

Dependence on government spending

• Exposure to geopolitical risks
• Potential for cost overruns on large projects
• Competition from other major defense contractors

What Could Drive NOC Stock Higher?

Continued government contracts for defense and space systems.

• Potential new contracts for hypersonic weapons development.
• Expansion in cybersecurity solutions and services.
• Increasing demand for unmanned autonomous systems.

What Are the Key Risks for NOC?

Changes in government spending priorities.

• Increased competition from emerging players.
• Supply chain disruptions affecting production.
• Geopolitical instability impacting international contracts.

What Are the Growth Opportunities for NOC?

• Expansion in Space Systems: Northrop Grumman's Space Systems segment offers significant growth potential, driven by increasing demand for satellites, ground systems, and missile defense systems. Ongoing investments in space technologies and strategic partnerships will be crucial for capitalizing on this growth.
• Cybersecurity Solutions: The increasing prevalence of cyber threats drives demand for Northrop Grumman's cybersecurity solutions. The company's expertise in cyber, command, control, communications, computers, intelligence, surveillance, and reconnaissance systems positions it to capture a larger share of the cybersecurity market. As governments and businesses prioritize cybersecurity, Northrop Grumman's advanced solutions will be in high demand, fostering revenue growth and market leadership.
• Unmanned Autonomous Systems: Northrop Grumman's Aeronautics Systems segment, particularly its unmanned autonomous aircraft systems, offers substantial growth opportunities. The demand for high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems is increasing. With ongoing advancements in autonomous technologies and strategic partnerships, Northrop Grumman can expand its market presence and secure long-term contracts.
• Hypersonic Weapons Development: The development and production of hypersonic weapons represent a significant growth area for Northrop Grumman. As nations prioritize hypersonic capabilities, Northrop Grumman's expertise in propulsion and weapons systems positions it to secure lucrative contracts. Investments in research and development and strategic collaborations will be essential for maintaining a competitive edge in this rapidly evolving market.
• Modernization of Defense Systems: The ongoing modernization of defense systems worldwide presents opportunities for Northrop Grumman's Defense Systems segment. The company's integrated battle management systems, weapons systems, and life cycle service and support are in high demand as governments upgrade their military capabilities. By offering advanced solutions and comprehensive support services, Northrop Grumman can secure long-term contracts and drive revenue growth.

What Are NOC's Competitive Advantages?

• Technological expertise and innovation
• Long-term contracts with government agencies
• High barriers to entry in the aerospace and defense industry
• Strong relationships with key customers

What Does NOC Do?

Founded in 1939 and headquartered in Falls Church, Virginia, Northrop Grumman Corporation has evolved into a global aerospace and defense technology leader. The company operates through four primary segments: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. The Aeronautics Systems segment focuses on designing, developing, manufacturing, and sustaining aircraft systems, including unmanned autonomous aircraft systems and strategic long-range strike aircraft. The Defense Systems segment produces weapons and mission systems, offering integrated battle management systems, precision strike weapons, and life cycle service and support. The Mission Systems segment provides cyber, command, control, communications, computers, intelligence, surveillance, and reconnaissance systems, along with radar and electronic warfare systems. The Space Systems segment delivers satellites, ground systems, missile defense systems, and launch vehicles. Northrop Grumman's diverse portfolio and technological expertise have solidified its position as a key partner for government and commercial clients worldwide, contributing to national security and technological advancement.

What Products and Services Does NOC Offer?

• Designs, develops, and manufactures aircraft systems.
• Produces weapons and mission systems.
• Offers integrated battle management systems.
• Provides cyber, command, control, communications, computers, intelligence, surveillance, and reconnaissance systems.
• Delivers satellites and payloads.
• Develops missile defense systems and interceptors.
• Creates launch vehicles and related propulsion systems.

How Does NOC Make Money?

• Generates revenue through long-term contracts with government agencies.
• Sells advanced technology products and services to commercial clients.
• Provides life cycle service and support for software, weapons systems, and aircraft.
• Offers sustainment, operation, and modernization services for air, sea, and ground systems.

What Industry Does NOC Operate In?

Northrop Grumman operates in the aerospace and defense industry, characterized by high barriers to entry, long-term contracts, and significant government spending. The industry is driven by geopolitical factors, technological advancements, and the need for national security. Northrop Grumman competes with companies like Lockheed Martin Corporation and General Dynamics Corporation, focusing on innovation and technological superiority to maintain its competitive edge. The global defense market is expected to grow, driven by increasing security threats and modernization efforts, benefiting companies like Northrop Grumman.

Who Are NOC's Key Customers?

• U.S. Department of Defense
• International government agencies
• Commercial aerospace companies
• Intelligence community

Company Profile

Northrop Grumman Corporation operates in the Aerospace & Defense industry within the Industrials sector. It is headquartered in Falls Church, US. The company is led by CEO Kathy J. Warden. NOC has traded publicly since 1981.

Return on equity for Northrop Grumman Corporation stands at 28.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 9.2%, showing how much profit it generates from its asset base. NOC trades at a trailing price-to-earnings ratio of 16.45, below the Industrials sector average of ~28.30x. Its free cash flow yield is 4.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.14 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 6.2%, the inverse of the P/E and a quick read on earnings relative to price.

NOC Valuation & Market Position

With a $73.7B market cap, Northrop Grumman Corporation sits in the large-cap segment of the market. Analyst price targets span from $500.00 to $745.00, with a consensus of $622.78. At the current price of $518.95, that implies approximately 20% upside potential. Relative to its peer group, NOC's quantitative score of 66/100 is roughly in line with the peer average of 65/100.

Quarterly Financial Performance: Northrop Grumman Corporation

Revenue for Northrop Grumman Corporation came in at $10.88B during Q2 FY2026, a 10.1% improvement versus the preceding quarter. The company recorded net income of $1.09B, with diluted EPS of $7.68. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Industrials. Across the four most recent quarters, NOC averaged $7.87 in diluted EPS.

Northrop Grumman Corporation's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 3.12 places it in the safe zone, indicating low near-term bankruptcy risk.

Northrop Grumman Corporation has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 1.1% above estimates on average.

Over the past six months, Northrop Grumman Corporation insiders filed 36 SEC Form 4 transactions — 21 sales and 15 purchases. On net that is roughly 39K shares acquired (about $2.0M) — insiders putting money in tends to read as conviction.

NOC Financials

Next earnings report: Oct 20, 2026

NOC earnings history & estimates →

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NOC Analyst Consensus

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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