SummaryNorthrop Grumman delivered strong Q2 2026 results, with 5% sales growth, a record $104.7B backlog, and raised 2026 guidance despite headline margin pressure.NOC's margin compression stemmed from isolated program issues (SiAW, GEM 63XL), while core segments operated near historical margin levels and cash flow surged.2026 guidance now implies $44B in sales, $28.60–$29.10 EPS, and $3.1–$3.5B in free cash flow, with B-21, Sentinel, and national security space as key growth drivers.I maintain a Strong Buy rating with a $656 base case price target (25% upside), citing stable growth, a robust backlog, and future shareholder return potential post-CapEx cycle.Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More » Getty Images
Northrop Grumman Corporation (NOC) reported a stronger second quarter than the headline year-on-year comparisons suggest. Sales increased modestly, backlog rose to record levels, and adjusted free cash flow surged, with margins and earnings per share being the only metrics with
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Northrop Grumman podepsal s Airbus Defence and Space memorandum o spolupráci na rozšíření ISR schopností NATO s využitím MQ-4C Triton. Dohoda zahrnuje komunikace, zpracování dat, analýzu zpravodajských informací i velení a řízení.
Key Takeaways NOC signed an MOU with Airbus to expand NATO ISR capabilities using MQ-4C Triton systems.The pact covers communications, data processing, intelligence analysis, dissemination and command systems.NOC's NATO experience and partnerships support faster deployment and allied interoperability. Northrop Grumman (NOC - Free Report) continues to strengthen its position in the Intelligence, Surveillance and Reconnaissance (ISR) market through its advanced unmanned aircraft systems, communications technologies and mission-critical defense solutions. The company develops integrated ISR capabilities that help military customers improve situational awareness, enhance decision-making and support operations across multiple domains.
A key example is Northrop Grumman's recently signed Memorandum of Understanding (MOU) with Airbus Defence and Space to support the expansion of the NATO Intelligence, Surveillance and Reconnaissance Force with MQ-4C Triton uncrewed aircraft systems. The collaboration will explore a transatlantic solution to deliver advanced ISR capabilities for NATO operations while strengthening defense cooperation across the Alliance.
Per the agreement, Northrop Grumman will work with Airbus and several European defense companies to provide services that include airborne and ground communications, data processing, intelligence analysis and dissemination, as well as command and control capabilities. The partnership also builds on the company's experience supporting NATO's existing RQ-4D Phoenix fleet, helping accelerate the deployment of next-generation ISR capabilities and strengthen interoperability among allied forces.
As defense agencies worldwide continue to invest in advanced ISR capabilities, demand for integrated surveillance, communications and command systems is expected to remain strong. Northrop Grumman's expanding international partnerships, proven MQ-4C Triton platform and expertise in communications, networking and mission systems position it well to benefit from long-term defense modernization programs and growing demand for ISR solutions.
Other Stocks to Keep on the WatchlistOther aerospace and defense companies expanding their ISR capabilities are discussed below:
General Dynamics (GD - Free Report) : Through its General Dynamics Information Technology business, the company provides ISR and C5ISR solutions, including secure communications, systems integration and mission support services for military customers.
L3Harris Technologies (LHX - Free Report) : The company offers advanced ISR solutions, including airborne sensors, intelligence systems and secure communications that help improve surveillance, information sharing and mission effectiveness.
The Zacks Rundown for NOCShares of NOC have lost 0.2% in the past month compared with the industry’s 3.6% decline.
Image Source: Zacks Investment Research
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.60X compared with its industry’s average of 2.46X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NOC’s 2026 earnings has moved south over the past 60 days.
Northrop Grumman uvedl, že jeho robotická kosmická loď MRV má být dnes vypuštěna a v roce 2027 začne fungovat po orbitálním umístění a testech. CEO Kathy Wardenová k možné zbraňové verzi řekla, že rozhodnutí nechá na vládě USA.
ToplineNorthrop Grumman CEO Kathy Warden on Tuesday appeared to avoid a question about whether the defense contractor’s robotic spacecraft—scheduled for an evening launch by SpaceX—could be weaponized, suggesting she would “leave it up to the U.S. government.”
“I will leave it up to the U.S. government,” CEO Kathy Warden said during an earnings call.
Copyright 2026 The Associated Press. All rights reserved.
Key FactsNorthrop Grumman’s Mission Robotic Vehicle (MRV) is scheduled to launch on Tuesday barring a weather delay, Warden said during the firm’s earnings call, with a roughly four-hour launch window opening at 5:15 p.m. EDT.
Northrop Grumman has pitched its MRV as the first robotic spacecraft capable of repairing, relocating and upgrading satellites in orbit, and Warden indicated the MRV will become operational in 2027 after orbital positioning and testing.
When asked by Melius Research analyst Scott Mikus whether there was a market for an “offensive version” of the MRV that could disable other satellites, Warden replied: “I will leave it up to the U.S. government to decide how that capability might fulfill mission objectives.”
big number$105 billion. That’s the size of Northrop Grumman’s backlog, a record, the company reported Tuesday. The defense contractor raised its sales outlook for the year to up to $44.25 billion, above consensus Wall Street estimates of just below $44 billion, according to FactSet. Earnings through Northrop Grumman’s latest quarter came at $4.86 per share and revenue hit $44.8 billion, well above projections of $2.96 per share and $35.7 billion, respectively.
tangentTesla CEO Elon Musk said in April the automaker’s humanoid robot Optimus “will not just be Tesla’s biggest product ever, but probably the biggest product ever.” Tesla unveiled its robotics project in 2021, as Musk said the company’s goal is to “make a useful humanoid robot as quickly as possible.”
key backgroundNorthrop Grumman has positioned space as one of its major strategic business targets in recent years, landing a series of contracts with the U.S. military. The defense contractor has also expanded into servicing satellites through its SpaceLogistics subsidiary, which developed the MRV. Northrop Grumman’s space segment accounted for 15% of all of its revenue through the latest quarter in addition to a backlog exceeding $16 billion.
further readingForbesTesla Beats First-Quarter Expectations Amid Pivot To Robotics, AIBy Alicia Park
Northrop Grumman zveřejnil konferenční hovor k výsledkům za 2. čtvrtletí 2026. Firma zároveň uvedla, že výhled na rok 2026 vychází z tehdy dostupných informací.
Northrop Grumman Corporation (NOC) Q2 2026 Earnings Call July 21, 2026 9:30 AM EDT
Company Participants
Adam Barr
Kathy Warden - Chair, CEO & President
John Greene - Corporate VP & CFO
Conference Call Participants
Seth Seifman - JPMorgan Chase & Co, Research Division
Sheila Kahyaoglu - Jefferies LLC, Research Division
Gavin Parsons - UBS Investment Bank, Research Division
Jeremy Jason - Citigroup Inc., Research Division
Scott Deuschle - Deutsche Bank AG, Research Division
David Strauss - Wells Fargo Securities, LLC, Research Division
Matthew Akers - BNP Paribas, Research Division
Justin Lang - Morgan Stanley, Research Division
Scott Mikus - Melius Research LLC
Andre Madrid - BTIG, LLC, Research Division
Peter Arment - Robert W. Baird & Co. Incorporated, Research Division
Gautam Khanna - TD Cowen, Research Division
Myles Walton - Wolfe Research, LLC
Presentation
Operator
Good day, and thank you, ladies and gentlemen, and welcome to Northrop Grumman's Second Quarter 2026 Conference Call. Today's call is being recorded. My name is Josh, and I will be your operator today. [Operator Instructions]
I would now like to turn the call over to your host, Mr. Adam Barr, Head of Investor Relations. Mr. Barr, please proceed.
Adam Barr
Good morning, and welcome to Northrop Grumman's Second Quarter 2026 Conference Call. Before we begin, please note that matters discussed on today's call, including guidance and outlooks for 2026 and beyond, reflect the company's judgment based on information available at the time of this call. They constitute forward-looking statements under the safe harbor provisions of federal securities laws. Forward-looking statements involve risks and uncertainties, including those noted in today's press release and our SEC filings, which may cause actual company results to differ materially.
Today's call will also include non-GAAP financial measures, which are reconciled to our GAAP results in the earnings release. Additionally, we refer to a presentation that has been posted to our Investor Relations
Northrop Grumman upravil výhled tržeb na fiskální rok 2026 na 43,75 až 44,25 miliardy USD a zisk na akcii na 28,60 až 29,10 USD díky silné poptávce po zbraních.
Signage is displayed at the Northrop Grumman Corporation booth at Special Operations Forces (SOF) Week for defense companies in Tampa, Florida, U.S., May 7, 2024. REUTERS/Luke Sharrett Purchase Licensing Rights, opens new tab
July 21 (Reuters) - Defense supplier Northrop Grumman (NOC.N), opens new tab on Tuesday lifted its 2026 sales and adjusted profit forecast, supported by sustained demand for weapons amid a wave of geopolitical conflicts.
Shares were down 4% in early trading in New York as the company said two of its four business segments did not perform well during the quarter.
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U.S. President Donald Trump has been pressing defense companies to expand manufacturing capacity and boost weapons production as the wars in Ukraine and the Middle East drain the country's stockpiles.
The U.S. has expended more than 50,000 rockets, missiles and other rocket-propelled projectiles since the beginning of the Russia-Ukraine conflict in 2022 through the war with Iran, according to data from the Pentagon.
Trump has also proposed a record $1.5 trillion military budget for fiscal year 2027, far exceeding the $901 billion approved for 2026.
Revenue in Northrop's defense systems business rose 5%, helped by strong sales in its Sentinel program, the land-based leg of the U.S. nuclear triad.
However, operating income in the defense business fell 38% as the company spends more to develop and qualify its air-to-surface missile, Stand-in Attack Weapon and mature production for the long-range version of the Advanced Anti-Radiation Guided Missile.
"Given the market’s tendency to punish execution challenges, we could see pressure on the stock, though we do not believe expectations for the quarter were very high," said Seth Seifman, analyst at JP Morgan.
Northrop's largest revenue segment, Aeronautics, posted a 13% increase in second-quarter sales compared with a year earlier, driven by strong performance in the B-21 Raider program and other classified programs.
The B-21 Raider, a nuclear-capable long-range strike aircraft, received a major production boost in February, when Northrop signed an Air Force agreement, opens new tab expanding production capacity by 25%, with the first delivery set for 2027.
Northrop lifted its 2026 revenue forecast by $250 million to a range of $43.75 billion to $44.25 billion, roughly in line with Wall Street estimates, according to data compiled by LSEG.
Excluding items, the company now expects 2026 profit between $28.60 and $29.10 per share, compared to a prior range of $27.40 to $27.90 apiece.
The Falls Church, Virginia-based company reported total sales of $10.88 billion for the quarter ended June 30, compared to analysts' expectations of $10.81 billion. Its total backlog rose 9% to $104.7 billion during the period - a record.
Its per-share quarterly profit stood at $7.68, compared with $8.15 a year earlier, with the latter including a $1.04 benefit from the divestiture of Northrop's training services business. Analysts on average expected $6.82 per share.
The beat in quarterly profit was primarily due to a lower tax rate, according to analysts at JP Morgan and TD Cowen.
Reporting by Aishwarya Jain in Bengaluru; Editing by Jonathan Ananda and Nick Zieminski
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Mike Stone is a Reuters reporter covering the U.S. arms trade and defense industry. Most recently Mike has been focused on the Golden Dome missile defense shield. Mike also spends a lot of his time writing on Ukraine and how industry has adapted, or faltered as it supports that conflict. Mike, a New Yorker, has extensively covered how the U.S. has supplied Ukraine with weapons, the cadence, decisions and milestones that have had battlefield impacts. Before his time in Washington Mike’s coverage focused on mergers and acquisitions for oil and gas companies, financial institutions, defense companies, consumer product makers, retailers, real estate giants, and telecommunications companies.
July 21, 2026 06:54 ET | Source: Northrop Grumman Corporation
FALLS CHURCH, Va., July 21, 2026 (GLOBE NEWSWIRE) -- Northrop Grumman Corporation (NYSE: NOC) has released its second quarter 2026 financial results. A copy of the earnings release has been furnished in the company’s Form 8-K filing and is also available on the company's investor relations website at http://investor.northropgrumman.com.
Earnings Call Webcast
As previously announced, Northrop Grumman will webcast its earnings conference call at 9:30 a.m. Eastern time today. A live audio broadcast of the conference call will be available on http://investor.northropgrumman.com.
About Northrop Grumman
Northrop Grumman is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world, and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers’ toughest problems, our employees define possible every day.
Northrop Grumman čeká ve 2. čtvrtletí vyšší tržby díky silnému backlogu a poptávce po obraně. Management čeká vysoký jednociferný sekvenční růst tržeb oproti předchozímu čtvrtletí ve všech čtyřech segmentech.
Key Takeaways Northrop Grumman is expected to post higher Q2 revenues supported by strong backlog and defense demand.NOC expects high single-digit sequential sales growth across all four operating segments.NOC faces execution risk as Sentinel program cost and contract discussions continue. Northrop Grumman Corporation (NOC - Free Report) is scheduled to release second-quarter 2026 results on July 21, before market open. The company delivered an earnings surprise of 0.99% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Key Factors Likely to Influence NOC’s Q2 ResultsNorthrop Grumman’s second-quarter earnings are expected to have benefited from solid demand, supported by one of the strongest backlogs in the defense industry. It offers strong visibility into near-term revenue streams.
Continued geopolitical tensions, increasing U.S. and allied defense spending, and demand for advanced aircraft, missile defense, space systems, and autonomous technologies should have continued to support new contract awards and program execution during the second quarter.
Management stated that it expects "high single-digit sequential sales growth" in the second quarter. This suggests that revenues should increase meaningfully from the first-quarter level, with growth expected across all four operating segments rather than being driven by a single business. Segment operating margins are expected to improve, driven by stronger operational performance, favorable production timing and a better business mix.
The company’s top line is likely to have benefited from the ramp-up of major programs, particularly in missile systems, airborne radar, and strategic modernization efforts. These programs are transitioning into higher production phases, which typically boosts revenues.
While the Sentinel program remains a key long-term growth driver for Northrop Grumman, it also represents the company's biggest execution risk. Following cost overruns and schedule delays, the U.S. Air Force restructured the program, and discussions with the government on revised costs, timelines, and contract terms are ongoing. If the company records additional cost growth, revises program estimates, or recognizes new charges during the second quarter, it could negatively impact operating margins and earnings.
NOC’s Q2 ExpectationsThe Zacks Consensus Estimate for earnings is pegged at $6.84 per share, indicating a year-over-year decrease of 3.8%.
The Zacks Consensus Estimate for revenues is pinned at $10.78 billion, implying a year-over-year improvement of 4.1%.
What the Zacks Model UnveilsOur proven model predicts an earnings beat for Northrop Grumman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Other Stocks to ConsiderInvestors may also consider the following players from the same industry, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
RTX Corporation (RTX - Free Report) is likely to come up with an earnings beat when it announces second-quarter results on July 23, before market open. It has an Earnings ESP of +2.02% and a Zacks Rank #2 at present.
The consensus estimate for RTX’s second-quarter sales suggests an improvement of 5.8% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 12.7% for the trailing four quarters.
General Dynamics (GD - Free Report) is likely to come up with an earnings beat when it announces second-quarter results on July 29, before market open. It has an Earnings ESP of +2.94% and a Zacks Rank #2 at present.
The consensus estimate for GD’s second-quarter sales suggests an improvement of 3.2% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 5.3% for the trailing four quarters.
L3Harris Technologies (LHX - Free Report) is expected to come up with an earnings beat when it reports second-quarter results on July 29, after market close. It has an Earnings ESP of +3.02% and a Zacks Rank #3 at present.
The consensus estimate for LHX’s second-quarter sales implies an improvement of 6.6% from the year-ago quarter’s level. The Zacks Consensus Estimate for earnings is pinned at $2.81 per share, indicating year-over-year growth of 1.1%.
Wall Street analysts forecast that Northrop Grumman (NOC - Free Report) will report quarterly earnings of $6.84 per share in its upcoming release, pointing to a year-over-year decline of 3.8%. It is anticipated that revenues will amount to $10.78 billion, exhibiting an increase of 4.1% compared to the year-ago quarter.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain Northrop Grumman metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts predict that the 'Sales- Mission Systems' will reach $3.21 billion. The estimate indicates a year-over-year change of +1.5%.
Analysts forecast 'Sales- Aeronautics Systems' to reach $3.27 billion. The estimate suggests a change of +4.9% year over year.
Analysts' assessment points toward 'Sales- Space Systems' reaching $2.73 billion. The estimate indicates a change of +3.2% from the prior-year quarter.
The average prediction of analysts places 'Sales- Defense Systems' at $2.14 billion. The estimate indicates a year-over-year change of +7.3%.
According to the collective judgment of analysts, 'Operating income (loss)- Mission Systems' should come in at $468.64 million. The estimate is in contrast to the year-ago figure of $441.00 million.
It is projected by analysts that the 'Operating income (loss)- Space Systems' will reach $299.67 million. Compared to the current estimate, the company reported $280.00 million in the same quarter of the previous year.
The consensus among analysts is that 'Operating income (loss)- Aeronautics Systems' will reach $307.92 million. Compared to the present estimate, the company reported $321.00 million in the same quarter last year.
Analysts expect 'Operating income (loss)- Defense Systems' to come in at $214.78 million. The estimate is in contrast to the year-ago figure of $253.00 million.
The consensus estimate for 'Segment operating income adjustment- Unallocated corporate expenses' stands at -$55.00 million. The estimate is in contrast to the year-ago figure of $143.00 million.
View all Key Company Metrics for Northrop Grumman here>>>
Over the past month, shares of Northrop Grumman have returned -4.5% versus the Zacks S&P 500 composite's +0.5% change. Currently, NOC carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Northrop Grumman zahájil výstavbu nové budovy v Roy Innovation Center v Utahu pro program Sentinel amerického letectva a další obranné mise. Projekt má vytvořit stovky pracovních míst a podpořit dodání první schopnosti Sentinel do počátku 30. let.
As the largest defense contractor in Utah, the company marks a pivotal moment for growth, aerospace innovation and national defense investment July 14, 2026 17:58 ET | Source: Northrop Grumman Corporation
ROY, Utah, July 14, 2026 (GLOBE NEWSWIRE) -- Northrop Grumman (NYSE: NOC) broke ground on a new building at its expansive Roy Innovation Center (RIC), the central campus tailor-made to develop the U.S. Air Force Sentinel Intercontinental Ballistic Missile (ICBM) program and other critical aerospace and defense missions. Northrop Grumman’s investment to expand the footprint of the Sentinel program will create hundreds of new jobs and supports the accelerated timeline to deliver Sentinel initial capability to the U.S. Air Force by the early 2030s while enabling long-term growth across multiple national security programs.
The new addition brings the RIC campus to a total of six state-of-the-art buildings and more than 1.1 million square feet of office space, providing capacity for more than 5,000 employees supporting strategic deterrence and advanced aerospace programs. Construction of the new Legacy Building begins this summer and will be completed by 2028.
As the largest defense contractor in Utah, Northrop Grumman’s continued investments in the state are having a significant economic impact while creating hundreds of new jobs across multiple missions and programs. Northrop Grumman directly employs over 11,000 Utahns and, according to a recent study, supports more than 46,000 jobs across the state, generating over $12.4 billion for the economy.
Tony Nolls, Director of Operations, Northrop Grumman; Taylor Woodbury, CEO, Woodbury Construction; Sarah Willoughby, Vice President and General Manager, Sentinel Program Director, Northrop Grumman; Spencer J. Cox, Utah Governor; Ben Davies, Corp. Vice President & President, Defense Systems, Northrop Grumman; Amanda Davis, Vice President and Sentinel EMD Program Manager, Northrop Grumman; Joshua Johnson, Vice President of Business Management, Northrop Grumman. (Photo Credit: Northrop Grumman)
"As Utah's largest aerospace and defense employer, Northrop Grumman is a cornerstone of our state's economy and a key contributor to our nation's security. We are proud to partner with Northrop Grumman as it advances aerospace innovation, strengthens advanced manufacturing, and creates high-quality jobs across Utah. Together, we are ensuring Utah remains a leader in the technologies and capabilities that support our national defense. For generations, Utah has embraced the responsibility of advancing the strategic deterrence mission, and we are proud to uphold and continue that legacy," said Utah Governor Spencer Cox.
“Utah’s world-class talent pool, strategic location to Hill Air Force Base and supportive community make it the ideal home for this expansion of Sentinel and other critical missions we support from this site,” said Ben Davies, corporate vice president and president, Northrop Grumman Defense Systems. “This groundbreaking symbolizes our longstanding commitment to the state and reinforces our investment in national security and local prosperity through an enduring presence that will support multiple missions for decades to come.”
Over the past five years, Northrop Grumman has invested $13.5 billion in infrastructure and R&D, including $2 billion dedicated to solid rocket motor capacity and capabilities—that accelerate and scale production for the Sentinel program and strengthen the broader strategic deterrence and space launch industrial base. As Sentinel continues to advance, Northrop Grumman remains focused on delivering warfighter capabilities that balance breakthrough technology, affordability and speed across a portfolio of missions that rely on our Utah facilities and teams.
Northrop Grumman is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers’ toughest problems, our employees define possible every day.
RTX po výsledcích za 1. čtvrtletí zvýšila celoroční výhled na tržby 92,5 až 93,5 miliardy USD a upravený EPS 6,70 až 6,90 USD. Jde o osmý kvartální beat v řadě.
Defense stocks are the rare corner of the market where geopolitical anxiety, fiscal generosity and multi-year revenue visibility all converge at once. With the Fiscal Year 2027 investment request by the Department of War totaling $756.8 billion, and President Trump declaring that “our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars,” the demand backdrop heading into July is as durable as it gets. Goldman Sachs frames it similarly, arguing that economic security will be a prominent theme in 2026, with NATO defense commitments and reindustrialization creating substantial opportunities for active managers.
Three names anchor that thesis. Each has a tool-verified data point supporting the “resilient” label, each has a clear bull case for July, and each carries a real risk worth pricing in.
Lockheed Martin (NYSE: LMT) Lockheed Martin (NYSE:LMT | LMT Price Prediction) trades at $545.70 as of July 2, up nearly 8% over the past month. The stock is up around 10% over the trailing year, but some recent weakness has created a more interesting entry. Forward P/E sits at 17, with a dividend yield of 3% and a Wall Street average target of $624.11.
The bull case is built on backlog and program lock-in. Lockheed ended 2025 with a record $194 billion backlog, representing more than 2.5 years of sales, and management reaffirmed FY2026 guidance of $77.5 to $80.0 billion in sales and diluted EPS of $29.35 to $30.25. Critically, the Department of War signed multi-year framework agreements to scale Patriot, THAAD, and PrSM production by three to four times current rates, and Lockheed just landed a $4.8 billion PAC-3 missile production contract. CEO Jim Taiclet said the year’s start “reinforces our confidence in Lockheed Martin’s continued operational and financial growth in the year ahead.”
Risk: Q1 2026 EPS of $6.44 missed the $6.70 estimate, dragged by a $125 million F-16 unfavorable profit adjustment. Fixed-price contract execution remains the perennial caveat.
Northrop Grumman (NYSE: NOC) Northrop Grumman (NYSE:NOC) has been the worst-performing of the three this year, down 12% year-to-date to $504.60. That underperformance is the opportunity. Forward P/E sits at 18, the dividend yields 2%, and the analyst target of $695.05 implies meaningful upside from current levels.
The resilience case is the cleanest of the group. Q1 2026 saw EPS of $6.14 beat the $6.06 estimate, revenue grew 4% to $9.88 billion, and net income climbed 82% year-over-year. The B-21 Raider swung from a $183 million operating loss to $305 million in operating income, a turnaround that should compound as production expands. Backlog stands at $95.61 billion with a 1.10 book-to-bill.
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The most telling signal came from the boardroom. On May 20, 2026, ten Northrop directors purchased 349 shares each at $552.17, a coordinated buy that strongly suggests management views the stock’s pullback as a gift. CEO Kathy Warden described the quarter as reflecting “our ability to deliver in today’s unprecedented global demand environment.”
Risk: The B-21 LRIP program still has memory of a $477 million loss provision, and government shutdown risk is explicitly not in guidance.
RTX Corp (NYSE: RTX) RTX (NYSE:RTX) is the only one of the three to raise full-year guidance after Q1, and its price action shows it. The stock trades at $188.54, up 32% over the past year and 4% in the past month. Forward P/E of 27 is the highest of the trio, but the growth profile justifies it. The yield is 1%, and analysts carry a target of $215.73.
The bull case is execution. Q1 2026 adjusted EPS of $1.78 beat the $1.52 estimate by 17%, the eighth consecutive quarterly beat. RTX then raised its FY2026 outlook to adjusted sales of $92.5 to $93.5 billion and adjusted EPS of $6.70 to $6.90. Backlog finished Q1 at $271 billion, split $162 billion commercial and $109 billion defense. Recent wins include a $1.1 billion U.S. Navy AIM-9X contract and a $515 million SPY-6 radar contract. CEO Chris Calio cited “organic sales and adjusted operating profit growth across all three segments” as the reason for the raise.
Risk: The Pratt & Whitney powder metal matter requiring accelerated GTF fleet inspections remains a multi-year cash drag, and tariff exposure at Collins and Pratt is a watch item.
What to Watch in July Q2 earnings land in late July for all three. Lockheed and Northrop report on the same calendar week, with RTX close behind. The question is whether RTX raises again, whether Northrop’s B-21 momentum is sustainable, and whether Lockheed can put the F-16 charge behind it. With backlogs collectively approaching $560 billion and a defense budget trajectory that only points higher, the setup favors continued operational delivery over multiple expansion.
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Northrop Grumman rozšiřuje své raketové schopnosti díky programům SiAW a AARGM-ER pro boj v silně bráněném prostředí. Firma tím posiluje pozici na trhu s raketami a protiraketovou obranou.
Key Takeaways Northrop Grumman is expanding missile capabilities through advanced tactical and defense technologies.NOC's portfolio includes precision-strike weapons, sensors, command-and-control and defense systems.SiAW and AARGM-ER target contested environments and advanced enemy air defense systems. Northrop Grumman (NOC - Free Report) continues to strengthen its position in the missile market through the development of advanced missile systems and precision-strike technologies for the U.S. military and allied nations. The company offers a broad portfolio of missile and missile defense solutions designed to address evolving battlefield requirements and counter increasingly sophisticated threats.
NOC continues to expand its missile capabilities through the development of advanced tactical missiles, missile defense technologies and next-generation munitions. Its portfolio includes precision-strike weapons, advanced sensors, command-and-control systems and integrated air and missile defense solutions that support a wide range of military missions. These capabilities enable the company to help customers detect, track and defeat emerging threats while improving operational effectiveness.
Among its advanced missile programs are the Stand-in Attack Weapon (SiAW) and the Advanced Anti-Radiation Guided Missile Extended Range (AARGM-ER). The SiAW is designed to strike heavily defended and time-sensitive targets in contested environments and features an open-architecture design that allows for rapid upgrades as threats evolve. Meanwhile, the AARGM-ER is a supersonic, air-launched tactical missile developed to destroy advanced enemy air defense systems through improved propulsion, extended range and an enhanced warhead.
With governments around the world continuing to invest in advanced missile systems and strengthen their defense capabilities, demand for modern missile technologies is expected to remain healthy. Northrop Grumman's broad portfolio of missile solutions, combined with its expertise in advanced electronics, sensors and integrated defense systems, positions it well to benefit from long-term growth opportunities in the global missile market.
Other Companies Expanding Their Missile CapabilitiesOther aerospace and defense companies expanding their missile capabilities are discussed below:
RTX Corporation (RTX - Free Report) : The company develops advanced missile systems such as the Patriot air and missile defense system and the SM-6 missile, which continue to witness strong global demand. RTX also provides advanced sensors, interceptors and command-and-control technologies that strengthen layered missile defense capabilities.
Lockheed Martin (LMT - Free Report) : Through its broad missile portfolio, the company manufactures systems such as the Patriot Advanced Capability-3 (PAC-3), Terminal High Altitude Area Defense (THAAD), Joint Air-to-Surface Standoff Missile (JASSM), Multiple Launch Rocket System (MLRS) and Javelin tactical missile, supporting U.S. and allied defense modernization efforts.
The Zacks Rundown for NOCShares of NOC have surged 3.1% in the past year compared with the industry’s 7.1% growth.
Image Source: Zacks Investment Research
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.63X compared with its industry’s average of 2.66X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NOC’s 2026 and 2027 earnings has moved north over the past 60 days.
Northrop Grumman získal od amerického námořnictva zakázku za 312,3 mil. USD na výrobu SEWIP Block 3 do srpna 2029. Systém posiluje elektronický boj proti radarům a protilodním střelám.
Key Takeaways Northrop Grumman won a $312.3M Navy contract for SEWIP Block 3 production through August 2029.NOC's SEWIP Block 3 adds advanced electronic attack to counter hostile radar and anti-ship missiles.Northrop Grumman continues investing in next-generation electronic warfare for naval defense systems. Northrop Grumman (NOC - Free Report) continues to strengthen its position in the Surface Electronic Warfare Improvement Program (SEWIP) market through its advanced electronic warfare (EW) technologies and long-standing partnership with the U.S. Navy. The company's Mission Systems business develops next-generation EW solutions that help naval forces detect, identify and counter increasingly sophisticated threats, improving survivability and mission effectiveness in contested maritime environments.
A key example is Northrop Grumman's latest contract from the U.S. Navy. In June 2026, the company secured a $312.3 million modification contract to exercise an option for the production of SEWIP Block 3 Hemisphere and Quadrant systems. Awarded by the Naval Sea Systems Command, the contract supports the continued production of advanced electronic warfare systems for U.S. Navy ships and is scheduled for completion by August 2029.
SEWIP Block 3 represents the latest evolution of the Navy's AN/SLQ-32 electronic warfare system. It provides advanced electronic attack capabilities that enable warships to detect, identify, analyze and counter hostile radar and anti-ship missile threats. By integrating offensive and defensive electronic warfare functions, the system enhances fleet survivability while allowing Navy vessels to respond more effectively to increasingly complex electromagnetic threats.
With naval forces worldwide investing heavily in electronic warfare and electromagnetic spectrum dominance, demand for advanced systems such as SEWIP is expected to remain strong. Northrop Grumman's continued investments in next-generation electronic warfare technologies, combined with its proven expertise in delivering mission-critical naval defense systems, position it well to benefit from long-term defense modernization initiatives and the growing focus on maritime electronic warfare capabilities.
Other Stocks to Keep on the WatchlistOther aerospace and defense companies expanding their electronic warfare capabilities are discussed below:
RTX Corporation (RTX - Free Report) : The company is a leading provider of advanced electronic warfare systems. Its Next Generation Jammer equips the EA-18G Growler with advanced electronic attack capabilities, enabling it to disrupt and degrade multiple enemy radar systems simultaneously.
General Dynamics (GD - Free Report) : The company offers advanced electronic warfare solutions through its defense portfolio. Its Tactical Electronic Warfare System enables military personnel to detect, identify and locate enemy signals while disrupting hostile communications and improving battlefield situational awareness.
The Zacks Rundown for NOCShares of NOC have lost 1.5% in the past year compared with the industry’s 6% growth.
Image Source: Zacks Investment Research
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.55X compared with its industry’s average of 2.62X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NOC’s 2026 and 2027 earnings has moved north over the past 60 days.
