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A record backlog and back-to-back guidance raises pushed Lockheed Martin to its biggest single-day surge in months, pulling the entire defense sector along for the ride and raising the question of how much runway remains.

Lockheed Martin (NYSE:LMT | LMT Price Prediction) stock rose 9% to $602.75 on Thursday after the company reported third-quarter results that topped estimates and raised its full-year outlook on the back of a record backlog. RTX (NYSE:RTX) shares gained 2% to $195.54, while Northrop Grumman (NYSE:NOC) stock advanced 3% to $553.29. Aerospace and defense names outperformed a softer broader market.

The iShares U.S. Aerospace & Defense ETF (BATS:ITA) edged up 0.21% to $206.13. The SPDR S&P 500 ETF Trust (NYSE ARCA:SPY) declined 0.82% to $766.86. Lockheed Martin delivered sales of $20.7 billion, up 11% year over year, along with earnings of $7.97 per share and free cash flow of $3.0 billion. The company’s backlog reached a record $292 billion.

Lockheed Martin Posts Strong Quarter and Raises Guidance Lockheed Martin exceeded Wall Street expectations for both revenue and earnings in the third quarter. Net earnings rose 14% to $1.8 billion. Growth was broad-based, with every segment posting year-over-year increases. Missiles and Fire Control revenue jumped 24%, driven by higher production of PAC-3 and THAAD systems, while Aeronautics revenue climbed 13% on increased F-35 volume.

The company raised its 2026 outlook for the second consecutive quarter. Lockheed Martin now expects revenue of $80 billion to $82 billion and earnings of $30.35 to $30.75 per share. Free cash flow guidance also moved higher to a range of $7.8 billion to $8.0 billion. Management cited sustained demand across the portfolio as the basis for the upward revision.

Record Backlog and F-35 Framework Add Visibility Lockheed Martin’s backlog of $292 billion includes roughly $52.5 billion tied to a multi-year award for PAC-3 Missile Segment Enhancement interceptors. The company also announced a 10-year framework with the U.S. Department of War covering 850 U.S. F-35 aircraft, spare parts, modification kits, and maintenance support. The framework is intended to support annual production of 156 aircraft and improve supply-chain stability, though it is not yet a finalized contract.

Chairman, President and CEO Jim Taiclet highlighted the combination of strong quarterly cash generation and the record backlog. Lockheed Martin also raised its dividend for the 24th consecutive year. The results underscore robust demand for missile systems amid elevated global defense spending.

RTX and Northrop Grumman Participate in Sector Strength RTX stock moved higher alongside the broader aerospace and defense group. The company supplies engines, avionics, and missile systems and has also benefited from elevated production awards in recent periods. RTX shares tracked the positive sentiment generated by Lockheed Martin’s results and backlog expansion.

Northrop Grumman stock advanced as well. Northrop Grumman focuses on aircraft, space systems, and defense electronics. Both RTX and Northrop Grumman operate in overlapping markets with Lockheed Martin, and the session’s gains reflected sector-wide interest rather than company-specific announcements from either peer.

Defense Stocks Outperform Broader Market The modest rise in the iShares U.S. Aerospace & Defense ETF showed that Lockheed Martin’s move stood out within the group. Defense contractors have seen improved visibility from geopolitical tensions and multi-year production contracts. Similarities among Lockheed Martin, RTX, and Northrop Grumman include exposure to U.S. and allied defense budgets and long-cycle programs. Differences appear in program concentration, with Lockheed Martin more heavily tied to the F-35 and certain missile systems.

Investors should consider keeping their position sizes modest given the sensitivity of defense stocks to budget cycles and contract timing. The raised outlook and record backlog provide clearer near-term visibility for Lockheed Martin, but conversion of the F-35 framework into firm orders and sustained production ramps will remain important. Continued demand for missiles and aircraft could support the group, while any shifts in spending priorities may introduce volatility.

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Pentagon contracts lock in cash flows years before a dividend check ever gets cut, and four defense giants are sitting on backlogs that stretch well into the next decade.

BAESY secures a U.S. Space Force contract to develop advanced SATCOM terminals, strengthening its position in the growing military satellite communications market.

Northrop Grumman targets 5%-7% sales growth in 2027, backed by a record backlog and B-21 investments, while higher capital spending adds execution challenges.

Shares of Northrop Grumman (NOC +4.57%) rose more than 4% on Tuesday after the aerospace giant highlighted the rising demand for its national security-related products.

The B-21 Raider. Image source: Northrop Grumman.

Arming America and its alliesNorthrop's sales grew 7% year over year to $11.1 billion in the third quarter. Growth was driven by a 14% jump in aeronautics systems revenue to $3.6 billion and a 12% rise in defense systems sales to $2.3 billion.

Sales related to the B-21 stealth bomber, F-35 strike fighter, and Sentinel missile contributed to Northrop's gains.

$534.00+$23.35 (+4.57%)

NYSE · As of 4:00 PM ET 10/20/26

All told, Northrop's net earnings increased 2% to $1.1 billion, or $7.89 per share. That topped Wall Street's expectations, which had called for per-share profits of $7.18.

Defense spending is set to riseConflicts in Ukraine and the Middle East are driving the U.S. military and its allies to invest more in defense-related technology.

Net awards of $16.4 billion in the third quarter brought Northrop's order backlog to $109.6 billion.

The defense contractor, in turn, expects full-year net sales of $44 billion in 2026. Management also projects adjusted earnings per share of $29.35 to $29.75 and free cash flow of $3.1 billion to $3.5 billion.

"Globally, we continue to witness unprecedented levels of demand for defense capabilities," CEO Kathy Warden said during a conference call with analysts.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Northrop Grumman. The Motley Fool has a disclosure policy.

On its third quarter of 2026 earnings call, held on Oct. 20, 2026, Northrop Grumman (NOC +4.57%) announced higher segment operating income guidance and accelerating sales momentum for 2027. Defense spending demands give the defense contractor multiyear visibility across major stealth bomber and strategic defense programs.

Three things management said stand out.

1. Record $110 Billion Backlog Provides Multiyear Revenue VisibilityDefense demand pushed new quarterly orders well past billed work, lifting the backlog, or cumulative value of contracted future orders, to a company record. That order volume secures years of predictable defense production.

In the quarter, our book to bill was 1.5x, which drove a new record backlog of $110 billion reflecting robust demand and years of durable sales.
-- Kathy J. Warden, Chair, Chief Executive Officer and President2. Organic Sales Growth Will Accelerate From 5% to 7% in 2027Management expects revenue expansion to speed up next year across all four operating segments. Higher production rates on key defense programs like the B-21 Raider bomber drive the faster operational pace.

For 2027, we project sales growth between 5% and 7%, representing further acceleration from the growth expected this year.
-- John Thomas Greene, Chief Financial Officer3. Microelectronics and Quantum Tech Offer Commercial Expansion PotentialNorthrop Grumman is exploring options to commercialize specialized microelectronics like Fortitude, a tiny microchip designed to deliver up to three times the power of existing solutions. Expanding beyond traditional defense contracts gives management new options to capture commercial tech spending.

Fortitude clearly is mature technology. Quantum is toward some very important technical milestones in the next couple of years. But we see both of them as addressing very large both defense and commercial markets.
-- Kathy J. Warden, Chair, Chief Executive Officer and PresidentLooking AheadBacklog growth reached 20% year over year, giving Northrop Grumman clear visibility across its defense franchises. Structural advantages in microelectronics and stealth manufacturing support long-term pricing discipline and expansion.

Momentum continues to build throughout our portfolio. As Kathy shared, backlog increased 20% to $110 billion compared to the third quarter of last year.
-- John Thomas Greene, Chief Financial OfficerOperational execution and expanding international sales bolster the long-term thesis. Capital investments in manufacturing capacity support higher program throughput.

That strategy is translating directly into our financial results, and it provides a visible runway for durable long-term growth.
-- John Thomas Greene, Chief Financial OfficerThe Motley Fool has positions in and recommends Northrop Grumman. The Motley Fool has a disclosure policy.

MarketBeat Week in Review – 09/28 - 10/02Northrop Grumman NYSE: NOC reported third-quarter 2026 sales growth across all four business segments, record backlog and higher earnings guidance, as the defense contractor cited demand for strategic deterrence, space systems, missile production and autonomous technologies.

Chair, CEO and President Kathy Warden said the company’s third-quarter results reflected “strong and disciplined execution” across its portfolio. Northrop reported a quarterly book-to-bill ratio of 1.5 and said backlog rose 20% from a year earlier to a record $110 billion, supported by more than $16 billion in bookings.

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Boeing’s Fighter Victory Opens the Door to Decades of Defense RevenueChief Financial Officer John Greene said third-quarter sales increased 7% year over year to $11.1 billion. Segment operating income rose 5%, while the segment operating margin was 12.1%. Diluted earnings per share increased 3% to $7.89, helped by higher sales, stronger segment performance and tax benefits.

Adjusted free cash flow was $1.8 billion in the quarter, more than 40% above the prior-year period. Greene said the result reflected working-capital improvement and $371 million in proceeds from the sale of a B-21 test asset. Capital expenditures totaled $306 million during the quarter.

Segment performance and program milestones These 4 Earnings Reports Expose the Market’s Growing Economic DivideAeronautics Systems sales rose 14%, driven by higher F-35 production and sustainment volumes, the B-21 ramp and greater B-2 sustainment activity. The segment’s operating margin improved to 10.5%, which Greene attributed to product mix and program execution.

Defense Systems sales increased 12% to $2.3 billion, with growth led by the Sentinel intercontinental ballistic missile program and tactical solid rocket motor programs. Operating income reached $250 million and the segment margin was 10.8%.

Mission Systems sales increased 2%, supported by restricted airborne radar programs and marine systems. Its operating margin was 15.8%. Space Systems sales also grew 2%, driven by national security programs including restricted efforts and the Glide Phase Interceptor program. Space margins improved to 11.3%, and Greene said the company resumed deliveries of GEM 63XL rocket motors during the quarter.

The company cited several major program developments. Warden said Northrop completed the first full vertical assembly of an inert Sentinel missile at Vandenberg Space Force Base and received Air Force approval for the program’s design maturity to proceed toward a first flight in 2027. She described Sentinel as a growth driver through the 2030s as it moves from development toward production.

In space, Northrop launched and deployed its first 21 satellites for the Space Development Agency’s Tranche 1 Transport Layer. The company expects nearly 50 of its planned 150 satellites to be deployed over the next six months for transport and tracking missions.

Northrop also added $1.4 billion to backlog after definitizing the Virginia-class Block VI submarine procurement for 12 additional shipsets of main propulsion units and ship service turbine generators, supporting Navy work through 2032.

Guidance raised as 2027 outlook points to faster growth Northrop maintained its 2026 sales outlook of $43.75 billion to $44.25 billion and expects a full-year book-to-bill ratio of at least 1.3. However, it raised the midpoint of its segment operating income forecast by $65 million. The company now expects segment operating income of $4.94 billion to $5.04 billion, implying a midpoint segment margin of about 11.3%.

The company also increased its full-year earnings-per-share guidance by $0.70, citing stronger segment performance and a lower tax rate, partly offset by higher corporate costs and interest expense. It maintained adjusted free-cash-flow guidance of $3.1 billion to $3.5 billion.

For 2027, Northrop projected sales growth of 5% to 7%, with growth anticipated in all four segments. Greene said segment operating income is expected to increase faster than sales, with margin expansion of 10 to 20 basis points from the midpoint of 2026 guidance. The company expects 2027 capital expenditures of approximately $2.1 billion, or about 4.5% of sales, primarily to support a higher B-21 production rate.

Northrop forecast 2027 adjusted free cash flow of $3.3 billion to $3.7 billion. Greene said higher capital intensity related to the B-21 acceleration would be offset by operating performance, working-capital discipline and cash-tax optimization.

Warden said growth in 2027 and beyond is expected to be supported by B-21 testing and production, Sentinel development, national security space, missile and munitions capacity, restricted space programs and international demand. The company’s goal is to double international sales by 2031.

Microelectronics and autonomy initiatives Warden highlighted FORTITUDE, a microelectronics product Northrop said uses patented technology to provide up to three times the power and 20 times the signal quality of comparable solutions. The company said the chip could have applications in radar, GPS, electronic warfare and future 6G networks.

Northrop is evaluating strategic alternatives for its microelectronics and quantum technology capabilities, including continuing to invest internally, expanding the investment base or potentially separating the business. Warden said all options remain under consideration and the company expects to provide more detail in coming months.

The company also reported that its Talon Blue aircraft completed a fully autonomous flight, including taxi, takeoff, maneuvers and landing. Warden said Northrop’s Talon IQ system has demonstrated interoperability with other companies’ autonomy software and the ability to control other platforms. She said the company is pursuing affordable, scalable collaborative combat aircraft capabilities for U.S. and international customers.

About Northrop Grumman (NYSE:NOC)Northrop Grumman Corporation NYSE: NOC is a global aerospace and defense company that develops and produces systems for government and commercial customers, with the U.S. government representing its primary customer base. The company operates across aerospace, defense, space, cybersecurity and advanced technology markets.

Its products and services include military aircraft and autonomous systems, space systems and satellites, missile defense technologies, command-and-control systems, cyber solutions, sensors, communications networks and other mission-critical systems.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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For the quarter ended September 2026, Northrop Grumman (NOC - Free Report) reported revenue of $11.12 billion, up 6.7% over the same period last year. EPS came in at $7.89, compared to $7.67 in the year-ago quarter.

The reported revenue represents a surprise of +0.57% over the Zacks Consensus Estimate of $11.06 billion. With the consensus EPS estimate being $7.22, the EPS surprise was +9.28%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Northrop Grumman performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Sales- Mission Systems: $3.16 billion versus $3.18 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +2% change.Sales- Aeronautics Systems: $3.58 billion versus the three-analyst average estimate of $3.51 billion. The reported number represents a year-over-year change of +13.8%.Sales- Intersegment eliminations: $-664 million versus $-614.22 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +16.7% change.Sales- Space Systems: $2.75 billion compared to the $2.8 billion average estimate based on three analysts. The reported number represents a change of +1.9% year over year.Sales- Defense Systems: $2.31 billion compared to the $2.2 billion average estimate based on three analysts. The reported number represents a change of +12% year over year.Operating income (loss)- Intersegment eliminations: $-94 million compared to the $-87.73 million average estimate based on three analysts.Operating income (loss)- Mission Systems: $500 million versus $474.86 million estimated by three analysts on average.Operating income (loss)- Space Systems: $312 million compared to the $306.42 million average estimate based on three analysts.Operating income (loss)- Aeronautics Systems: $377 million versus $337.46 million estimated by three analysts on average.Operating income (loss)- Defense Systems: $250 million versus the three-analyst average estimate of $233.89 million.Segment operating income adjustment- Unallocated corporate expenses: $-69 million compared to the $-59.13 million average estimate based on two analysts.View all Key Company Metrics for Northrop Grumman here>>>

Shares of Northrop Grumman have returned -3% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Northrop Grumman Corporation

FALLS CHURCH, Va., Oct. 20, 2026 (GLOBE NEWSWIRE) -- Northrop Grumman Corporation (NYSE: NOC) has released its third 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.

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Randy Sinclair
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Northrop Grumman reports third-quarter earnings per share of $7.89 from sales of $11.1 billion. Wall Street was looking for earnings per share of $7.19 from sales of $11.2 billion.

Northrop Grumman (NOC - Free Report) came out with quarterly earnings of $7.89 per share, beating the Zacks Consensus Estimate of $7.22 per share. This compares to earnings of $7.67 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +9.28%. A quarter ago, it was expected that this defense contractor would post earnings of $6.84 per share when it actually produced earnings of $7.68, delivering a surprise of +12.28%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Northrop Grumman, which belongs to the Zacks Aerospace - Defense industry, posted revenues of $11.12 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.57%. This compares to year-ago revenues of $10.42 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Northrop Grumman shares have lost about 10.5% since the beginning of the year versus the S&P 500's gain of 12.4%.

What's Next for Northrop Grumman?While Northrop Grumman has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Northrop Grumman was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $7.93 on $12.26 billion in revenues for the coming quarter and $28.84 on $44.02 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Intuitive Machines, Inc. (LUNR - Free Report) , is yet to report results for the quarter ended September 2026.

This company is expected to post quarterly loss of $0.12 per share in its upcoming report, which represents a year-over-year change of -100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Intuitive Machines, Inc.'s revenues are expected to be $243.3 million, up 364% from the year-ago quarter.

Key Takeaways NOC is advancing its 25mm Precision Grenadier System to address close combat and drone threats.NOC partnered with Barrett Firearms to manufacture the PGS weapon and integrate its ammunition programmer.NOC shares fell 4.4% in three months, while its forward Price/Sales of 1.52X trails the industry's 2.07X. Northrop Grumman (NOC - Free Report) is expanding its precision weapons capabilities as military forces seek effective solutions against evolving battlefield threats, including small unmanned aircraft systems. The company is advancing its Precision Grenadier System (PGS), a shoulder-fired 25mm grenade launcher designed to engage targets in close combat, behind cover and in drone-threat scenarios.

The system combines a launcher with programmable 25mm ammunition, letting soldiers engage targets that may be hard to reach with conventional weapons. Its potential role in countering small drones also reflects the growing need for cost-effective solutions against unmanned threats on the battlefield.

Northrop Grumman recently signed a teaming agreement with Barrett Firearms to manufacture the weapon portion of the PGS and integrate the inductive setter used to program its ammunition. Barrett will produce the weapon at its Nashville, TN, facility, supporting the program’s manufacturing and delivery plans.

The partnership combines Northrop Grumman’s ammunition and precision-weapons expertise with Barrett’s firearms manufacturing capabilities. It could help the companies address demand from U.S. and international customers seeking improved infantry capabilities.

As militaries adapt to changing battlefield requirements, demand for programmable ammunition, precision weapons and counter-drone solutions could create opportunities for Northrop Grumman. The PGS program adds to its broader portfolio of advanced weapons designed to improve warfighter effectiveness.

Defense Stocks to Keep on the RadarGrowing demand for precision weapons and counter-drone capabilities could also benefit other defense contractors developing advanced battlefield systems.

RTX Corporation (RTX - Free Report) : RTX develops precision-guided weapons and air defense systems, including solutions designed to counter aerial threats. Its missile technologies support military requirements for accurate engagement and improved battlefield protection.

Lockheed Martin (LMT - Free Report) : Lockheed Martin produces precision strike weapons and guided munitions for U.S. and allied forces. Its portfolio supports demand for advanced targeting and effective engagement of emerging battlefield threats.

The Zacks Rundown for NOCShares of NOC have lost 4.4% in the past three months compared with the industry’s 12.2% decline.

Image Source: Zacks Investment Research

The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.52X compared with its industry’s average of 2.07X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NOC’s 2027 earnings has remained the same over the past 60 days.

Image Source: Zacks Investment Research

NOC stock currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Northrop Grumman (NOC - Free Report) , which belongs to the Zacks Aerospace - Defense industry.

This defense contractor has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 6.63%.

For the last reported quarter, Northrop Grumman came out with earnings of $7.68 per share versus the Zacks Consensus Estimate of $6.84 per share, representing a surprise of 12.28%. For the previous quarter, the company was expected to post earnings of $6.08 per share and it actually produced earnings of $6.14 per share, delivering a surprise of 0.99%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Northrop Grumman. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Northrop Grumman has an Earnings ESP of +0.30% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on October 20, 2026.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Northrop Grumman Corporation (NYSE:NOC) will release its third quarter earnings report before the opening bell on Tuesday, Oct. 20.

Analysts expect the Falls Church, Virginia-based company to report quarterly earnings of $7.16 per share, down from $7.67 per share in the year-ago period. The consensus estimate for NOC’s quarterly revenue is $11.12 billion. It reported $10.42 billion last year, according to Benzinga Pro.

On Sept. 29, Northrop Grumman received $18.8 million U.S. Army contract to produce, integrate solid fuel ramjet propulsion technology for integration into XRC missile prototypes.

Shares of Northrop Grumman rose 1.2% to trade at $487.15 on Wednesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

TD Cowen analyst Gautam Khanna maintained a Hold rating and cut the price target from $590 to $540 on Oct. 9, 2026. This analyst has an accuracy rate of 69%. RBC Capital analyst Ken Herbert downgraded the stock from Outperform to Sector Perform and cut the price target from $640 to $525 on Oct. 2, 2026. This analyst has an accuracy rate of 73%. Guggenheim analyst Michael Ciarmoli initiated coverage on the stock with a Buy rating and a price target of $612 on Sept. 15, 2026. This analyst has an accuracy rate of 84%. UBS analyst Gavin Parsons maintained a Buy rating and raised the price target from $685 to $704 on Sept. 8, 2026. This analyst has an accuracy rate of 59%. JP Morgan analyst Seth Seifman maintained a Neutral rating and cut the price target from $635 to $600 on July 23, 2026. This analyst has an accuracy rate of 80%. Considering buying NOC stock? Here’s what analysts think:

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NOC over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Both L3Harris and Northrop Grumman have cratered nearly 20% this year while raising guidance and growing their backlogs to record levels, which means one of these defense dividends is quietly becoming a retirement income bargain and the other carries a…

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Should a retirement-focused investor own L3Harris Technologies (NYSE:LHX | LHX Price Prediction) or Northrop Grumman (NYSE:NOC) right now? Both defense contractors posted record backlogs this summer and raised 2026 guidance. Both stocks have still dropped hard: L3Harris is down 19.4% year to date and Northrop is down 15.91%. Their yields are almost the same, so the choice turns on how safe each payout is and how much you pay for it.

Income Today: Northrop Grumman Raises Faster L3Harris pays $1.25 a quarter, or $5 a year going forward. At $233.71, that works out to a yield of about 2.14%. Northrop pays $2.47 a quarter, or $9.88 a year, which is about 2.09% at $473.63.

Dividend growth breaks the tie. Northrop’s quarterly payout rose from $1.57 in 2021 to $2.47, a gain of about 57%, and its latest raise was 6.9%. Over that period, L3Harris went from $1.02 to $1.25, up about 23%, and its latest raise was 4.2%. L3Harris does have the longer recorded run. Its CFO, Ken Sharp, said “We’re in 24 years of dividend growth, so making sure that we get the dividend aristocrat I think is important to us” (a dividend aristocrat is an S&P 500 company with at least 25 straight years of increases). Winner: Northrop, because its raises build faster.

Payout Durability: L3Harris Carries More Cushion L3Harris’s dividend uses roughly 31% of its free cash flow guidance of about $3.0B. Free cash flow is the cash left over after capital spending. Second-quarter free cash flow rose 37% to $771M, and management projects about $4 billion of cash on hand. Northrop’s dividend uses roughly 43% of the midpoint of its $3.1B–$3.5B adjusted free cash flow guidance.

Northrop has more contract visibility. Its $104.69B backlog represents about 2.4 years of trailing revenue, compared with 1.8 years for L3Harris’s $42.0B. That backlog is expensive to deliver, though. Northrop plans $1.85 billion of capital spending in 2026 and about 4.5% of sales in 2027 and 2028 to ramp up B-21 bomber production.

The B-21 is a fixed-price contract that has already produced cost overruns. In the second quarter, Northrop also took cost-estimate charges of $68M and $91M on two programs. CEO Kathy Warden said: “We are not done with the qualification. Until we are, there is risk.” Winner: L3Harris.

Valuation: L3Harris Delivers More Growth per Dollar Both stocks trade about 38% below their 52-week highs (37.6% for L3Harris, 38.3% for Northrop). L3Harris sits almost exactly at its 52-week low of $233.01, well below its 200-day average of $310.17. Northrop’s 52-week low is $470.06.

Northrop looks cheaper at first glance: 15 times trailing earnings against 24 for L3Harris. On forward earnings the gap almost goes away: 18 for L3Harris and 17 for Northrop. Northrop’s forward multiple sits above its trailing one, which means earnings are projects to decline. Its quarterly earnings fell 5.8% year over year, while L3Harris’s rose 28.3%. The PEG ratio, which divides the P/E by expected growth, tells the same story: 1.19 for L3Harris against 3.407 for Northrop. Winner: L3Harris.

Verdict: L3Harris Offers the Stronger Retirement Income Profile For a retirement income investor, L3Harris wins. You get a slightly higher yield, a payout that uses less than a third of free cash flow, a large cash cushion and faster earnings growth, all at a share price near its 52-week low. Northrop’s faster raises depend on a capital-heavy bomber ramp and programs still in testing. That adds execution risk to the income stream.

One thing worth watching: Warden projects the Air Force to decide on speeding up B-21 production by year end. If that decision comes through and the Defense Systems cost overruns stop, Northrop’s faster dividend growth strengthens its case for investors with a longer horizon who can wait for it to build.

Contact [email protected] for any questions or corrections.

Northrop Grumman Corporation (NYSE:NOC – Get Free Report) gapped down before the market opened on Wednesday. The stock had previously closed at $504.61, but opened at $483.00. Northrop Grumman shares last traded at $484.5310, with a volume of 245,732 shares trading hands.

Trending Headlines about Northrop Grumman Here are the key news stories impacting Northrop Grumman this week:

Positive Sentiment: Northrop Grumman opened a new Arizona facility to support in-space systems, reinforcing its position in the growing space-defense market and potentially expanding future production capacity. Northrop Grumman continues in-space industry leadership with new facility opening in Arizona Positive Sentiment: The company is accelerating extended-range counter-drone missile technology for the U.S. Army, supporting its missile-defense pipeline and adding potential follow-on revenue opportunities. Northrop Grumman to accelerate extended-range C-UAS missile technology Positive Sentiment: UBS issued a Buy rating, while separate analysis suggested NOC could be undervalued by roughly 24% following new space prototype work. These views may limit downside if execution remains solid. Northrop Grumman receives a Buy from UBS Neutral Sentiment: Northrop’s backlog remains approximately $105 billion, supported by the B-21 Raider and Sentinel programs. The loss of F/A-XX does not reduce existing contracted revenue, although investors will monitor how effectively the company ramps production and manages costs. Negative Sentiment: Boeing won the Navy’s F/A-XX development contract, potentially positioning it to capture decades of future fighter production and sustainment revenue. Northrop’s shares decreased as investors reassessed its growth prospects outside its current backlog. Boeing beats Northrop for a $20 billion Navy fighter contract Negative Sentiment: Analysts expect a single-digit year-over-year decline in third-quarter earnings, creating another near-term catalyst for caution ahead of the October results. Northrop Grumman’s third-quarter 2026 earnings outlook Analyst Upgrades and Downgrades A number of research firms have weighed in on NOC. TD Cowen upped their target price on Northrop Grumman from $550.00 to $590.00 and gave the stock a “hold” rating in a research report on Wednesday, August 19th. Citigroup boosted their price objective on Northrop Grumman from $617.00 to $667.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Jefferies Financial Group cut their price objective on Northrop Grumman from $620.00 to $580.00 and set a “hold” rating for the company in a report on Friday, June 26th. Morgan Stanley set a $745.00 target price on Northrop Grumman in a research note on Wednesday, July 15th. Finally, Wells Fargo & Company reaffirmed an “overweight” rating and set a $620.00 target price on shares of Northrop Grumman in a report on Wednesday, July 8th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and nine have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Northrop Grumman has an average rating of “Moderate Buy” and a consensus price target of $647.57.

Get Our Latest Stock Analysis on Northrop Grumman Northrop Grumman Stock Performance The company has a quick ratio of 1.06, a current ratio of 1.17 and a debt-to-equity ratio of 0.81. The stock has a market cap of $68.47 billion, a price-to-earnings ratio of 15.31, a price-to-earnings-growth ratio of 2.83 and a beta of -0.11. The company’s 50-day simple moving average is $538.98 and its 200-day simple moving average is $568.95.

Northrop Grumman (NYSE:NOC – Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The aerospace company reported $7.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.82 by $0.86. The company had revenue of $10.88 billion for the quarter, compared to analysts’ expectations of $10.80 billion. Northrop Grumman had a return on equity of 24.25% and a net margin of 10.48%.The firm’s revenue was up 5.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $8.15 earnings per share. Northrop Grumman has set its FY 2026 guidance at 28.600-29.100 EPS. Analysts predict that Northrop Grumman Corporation will post 28.97 EPS for the current fiscal year.

Northrop Grumman Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Monday, August 31st were issued a dividend of $2.47 per share. This represents a $9.88 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend was Monday, August 31st. Northrop Grumman’s dividend payout ratio is currently 31.39%.

Insider Buying and Selling at Northrop Grumman In related news, Director Mark Welsh, III sold 95 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $547.53, for a total value of $52,015.35. Following the completion of the transaction, the director owned 4,393 shares in the company, valued at $2,405,299.29. This trade represents a 2.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.21% of the stock is owned by company insiders.

Institutional Trading of Northrop Grumman A number of hedge funds have recently bought and sold shares of the company. BlackRock Inc. acquired a new position in Northrop Grumman during the second quarter valued at $6,001,616,000. Bank of America Corp DE acquired a new stake in Northrop Grumman during the 2nd quarter worth about $1,298,141,000. Capital World Investors boosted its position in Northrop Grumman by 39.4% during the 4th quarter. Capital World Investors now owns 3,434,041 shares of the aerospace company’s stock worth $1,958,151,000 after acquiring an additional 970,029 shares during the period. Bank of New York Mellon Corp purchased a new position in Northrop Grumman during the 2nd quarter valued at about $376,135,000. Finally, Corient Private Wealth LP purchased a new position in Northrop Grumman during the 2nd quarter valued at about $44,039,000. 83.40% of the stock is owned by hedge funds and other institutional investors.

Northrop Grumman Company Profile (Get Free Report)

Northrop Grumman Corporation (NYSE:NOC) is a global aerospace and defense company that develops and produces systems for government and commercial customers, with the U.S. Department of Defense and other government agencies representing its primary markets. Its work spans advanced aircraft, autonomous systems, space systems, missile defense, command and control, cybersecurity, and other mission-critical technologies.

The company’s offerings include strategic and tactical aircraft, unmanned aerial vehicles, aircraft systems, satellites, spacecraft, launch vehicles, missile-warning and missile-defense systems, secure communications, and cyber and information systems.

Further Reading Five stocks we like better than Northrop Grumman Everyone in AI Is Quietly Copying Palantir’s Playbook Advanced Micro Devices Is Spending $8.2 Billion to Learn What AI Needs Next JPMorgan Bets on Genius Sports as the Market Loses Patience Apple’s $5.7 Billion Patent Verdict Raises a Bigger Royalty Question Receive News & Ratings for Northrop Grumman Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Northrop Grumman and related companies with MarketBeat.com's FREE daily email newsletter.

Defense contractors win contracts that stretch across multiple budget cycles, which means their dividend programs rest on a very different foundation than most industrial companies. Four of the largest primes have raised their payouts every single year, and the reasons…

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Most industrials live and die by the next order cycle. Defense primes book work on government contracts that stretch across several federal budget cycles, so their backlog behaves like a schedule of future cash receipts. One Lockheed Martin (NYSE:LMT | LMT Price Prediction) award, a seven-year contract valued at $35 billion for THAAD interceptors, shows how far that visibility can reach. This bundle is built around dividend growth and payout durability. All four carry modest yields. The appeal lies in long records of raising the quarterly check, backed by free cash flow guidance large enough to fund the next increase. For each stock, the income figure shown is the annualized forward dividend alongside the current share price.

Lockheed Martin: A Record Backlog Stands Behind Every Quarterly Check Lockheed builds the F-35 fighter, THAAD missile-defense interceptors, radars, hypersonic weapons and space systems for the U.S. government and allied militaries. Second-quarter revenue reached $20.06B (+10.5% YoY), and EPS of $7.94 beat the $7.20 estimate.

Income snapshot: The quarterly dividend is $3.45, an annualized forward payout of $13.8 per share against a current price of $510.61. Shares slipped 8.44% over the past month, so the yield on that payout is now measured against a lower share price.

Dividend safety: Management guides to 2026 free cash flow of $7.0 billion to $7.2 billion, after second-quarter free cash flow of $2.92B. Dividends cost $816 million in the first quarter and $796 million in the second. Full-year EPS guidance of $29.95 to $30.65 sits comfortably above the annual dividend. The CFO said the quarter showed “that we can invest for growth and deliver tangible shareholder value at the same time,” and management cites a strong credit rating as backing for its investment plans.

Track record: Lockheed lifted the quarterly rate from $3.3 to $3.45 starting with the 2025-12-01 ex-dividend date, after a prior step from $3.15 to $3.3. Every change in the quarterly rate since $0.11 in 2002 has been an increase. The last two raises were declared on 2025-10-09 and 2024-10-02, so keep an eye on the next declaration.

Bull case: Backlog sits at a record $230.42B, second-quarter book-to-bill hit 3.2 to one, and guidance went up across sales, EPS and free cash flow. Management said: “This deep book of contracts will fuel our sales growth for years to come.”

Risk: Program concentration. F-35 deliveries fell to 19 from 50 YoY in Q2. Management expects the 156-per-year production rate to hold but concedes funding depends on congressional and administration budget decisions. With one aircraft program this central, delivery slowdowns flow directly into cash timing.

General Dynamics: Cash Piling Up While the Shipyards Fill General Dynamics (NYSE:GD) spans Gulfstream business jets, nuclear submarines, surface combatants, auxiliary ships and land combat systems. Second-quarter revenue rose to $14.1 billion, up 8.1%, and EPS of $4.24 beat the $3.97 estimate for a fifth straight EPS beat.

Income snapshot: The quarterly dividend is $1.59, a forward annual rate of $6.36 per share against a price of $332.75. The next ex-dividend date is 2026-10-09, with payment on 2026-11-13. Shares are down 10.39% over the past month.

Dividend safety: First-half free cash flow came to $3.6 billion, against $834 million in dividends paid during first half of 2026. Management raised its full-year cash conversion outlook to “around 105%” of net income. The balance sheet is moving the right way: cash of approximately $4.3 billion and net debt of $3.2 billion, down $1.2 billion in a single quarter after repaying $500 million of notes with no refinancing planned.

Track record: The dividend stepped up from $1.50 to $1.59 starting with the 2026-04-10 ex-dividend date. Every change in the quarterly rate since $0.23 in 2006 has been an increase.

Bull case: Backlog hit a record $136.5 billion, up 32% from a year ago, with total estimated contract value of $186.9 billion. Book-to-bill was 1.4 to 1 and topped 1 to 1 in all four segments, and full-year EPS guidance rose to $16.80 to $16.90.

Risk: Shipbuilding capital intensity. Marine margin runs at 7.3% versus 14.5% in Aerospace, and the CFO warned “the profile of our investment” will grow significantly in the back half, alongside an approximately $500 million pension contribution. Second-half cash flow will look thinner than the first.

RTX: Jet Engine Aftermarket Gives This Payout a Second Engine RTX (NYSE:RTX) runs three businesses: Collins Aerospace ($8.21B in second-quarter revenue), Pratt & Whitney engines ($8.89B) and Raytheon defense systems ($8.27B). Its $289B backlog splits $162B commercial / $109B defense, making it the most commercially weighted name here.

Income snapshot: RTX pays $0.73 quarterly, a forward annual rate of $2.92 against a price of $185.68. The stock is up 12.61% over a year despite a 10.61% slide over the past month.

Dividend safety: Management raised 2026 free cash flow guidance to $8.50 to $8.75 billion, and second-quarter free cash flow reached $2.88B (vs. $69M prior year). Adjusted EPS guidance of $7.10 to $7.25 covers the forward dividend several times over. The chief executive said: “A commitment to the dividend, for sure. Obviously, we raised the dividend again here recently.” Debt reduction ranks alongside the payout among capital priorities.

Track record: The quarterly rate rose from 0.68 to 0.73 starting with the 2026-05-22 ex-dividend date. The record shows the rate reset to 0.475 in 2020, alongside a one-time 40.58 entry, and every change since has been an increase.

Bull case: Pratt commercial aftermarket sales grew 25%, and Raytheon posted a book-to-bill of 2.42. Civil aviation repair revenue and defense orders fund the same dividend, giving RTX two independent cash streams.

Risk: Commercial engine exposure. The Pratt & Whitney powder-metal GTF issue still requires accelerated inspections, with roughly $150 million of related compensation in the quarter. Management also flagged that part of second-quarter cash reflected timing and that inventory builds will weigh on working capital.

Northrop Grumman: Record Awards and a Marked-Down Share Price Northrop Grumman (NYSE:NOC) builds the B-21 bomber, the Sentinel ICBM, munitions and a large slate of restricted programs. Second-quarter awards totaled $20B, including $7.6B Sentinel and $4.3B restricted, pushing backlog to a record $104.69B. EPS of $7.68 beat the $6.82 estimate.

Income snapshot: The quarterly dividend is $2.47, a forward annual rate of $9.88 against a price of $485.01. Shares are down 19.07% over the past year, so the rising payout is now measured against a lower share price.

Dividend safety: Northrop reaffirmed 2026 free cash flow guidance of $3.1 to $3.5B, after second-quarter free cash flow of $978M (+53.5%) offset a seasonal first-quarter outflow of -$1.82B. MTM-adjusted EPS guidance of $28.60 to $29.10 sits well above the dividend. The CFO said “we understand how important free cash flow is for our investors.”

Track record: The rate climbed from $2.31 to $2.47 starting with the 2026-06-01 ex-dividend date, following raises to $2.31 and $2.06 in the prior two years. Setting aside a one-time $6.366 payment in 2011, every change in the regular quarterly rate since $0.23 in 2004 has been an increase.

Bull case: Management expects full-year book-to-bill of at least 1.25 times and targets doubling international sales to $10 billion by 2031.

Risk: Fixed-price development and classified program dependence. Operating income fell 23.1% on $68M SiAW and $91M GEM 63XL unfavorable adjustments, while net income leaned on a one-time $179M IRS benefit. Restricted programs disclose little, so cost overruns tend to surface as surprise charges, and capex near 4.5% of sales in 2027 and 2028 for the B-21 ramp will compete with payout growth.

Four Raises in a Year Keep the Growth Story Intact All four companies raised their quarterly dividends within the past 12 months, and all four guide to free cash flow that dwarfs what they pay out. Lockheed brings a record contracted book, General Dynamics a rapidly falling net debt, RTX a commercial cash stream layered on defense, and Northrop a classified franchise trading well below last year’s price. For income investors who prioritize rising checks over a big starting yield, this group offers long raise records worth researching.

If multi-decade raise records are the appeal here, it is worth looking beyond defense too. We ranked ten companies with 50-plus consecutive years of dividend increases by valuation in a free Dividend Kings report.

Contact [email protected] for any questions or corrections.

The Department of War altered the dynamics of the aerospace sector on Sept. 29, awarding Boeing NYSE: BA a full-scale development contract for the Navy's F/A-XX sixth-generation fighter. Investors reacted immediately, bidding Boeing shares up about 2% in premarket trading on Sept. 30. While the initial price action reflects optimism, the broader shift requires a closer look.

Boeing Today

$186.27 -1.41 (-0.75%)

As of 09/30/2026 03:59 PM Eastern

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$176.77▼

$254.3580.64

$270.95

Securing this $20 billion contract effectively cements Boeing's dominant position in America's next-generation air defense platforms. The F/A-XX award covers multiple test aircraft used for ground, airworthiness, systems, and weapons integration testing.

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Production jets intended to replace the F/A-18E/F Super Hornets remain years away, so the immediate impact is largely tied to long-cycle engineering. As we move from the initial headline shock, investors evaluating the award should assess how recent liquidity improvements position Boeing to meet these operational demands.

Controlling the Skies: The Sixth-Generation Fighter MonopolyWinning the F/A-XX development phase is not an isolated victory for Boeing. It directly follows the 2025 award of the Air Force's F-47 program. Controlling both primary sixth-generation fighter pipelines locks out competitors and consolidates future spending under a single prime contractor for decades.

Understanding how defense sector contracts work clarifies why this dynamic matters. The Department of War typically structures these programs in distinct phases. This initial $20 billion allocation strictly covers the engineering, manufacturing, and development stages. Contractors assume the greatest risk during this period, designing systems that meet classified requirements for maneuverability and payload. Profit margins tend to remain narrow as teams build prototype test aircraft.

The larger financial opportunity arrives later, during the production and sustainment phases. Defense analysts project the U.S. military needs at least 500 sixth-generation fighters to counter Pacific-theater headwinds and replace aging fourth-generation fleets.

By capturing both the Air Force and Navy development contracts, Boeing has positioned itself as a strong candidate to win the eventual production pipeline. Operating as the sole provider of future strike fighters would expand its total addressable market well into the 2030s and 2040s, providing a highly predictable, recurring revenue stream once the platforms reach operational capability.

Landing Gear Deployed: Liquidity Mitigates Engineering RiskSkeptics might point to recent execution problems within Boeing's Defense, Space & Security segment. The division posted a negative 0.2% operating margin in the second quarter of 2026. Fixed-price development contracts have also cost Boeing billions in recent years, with major charges tied to programs like the VC-25B, KC-46A, and T-7A. Adding a second sixth-generation fighter program introduces complex, parallel engineering risks that could theoretically strain internal resources.

The balance sheet currently tells a more stable story. Boeing's second-quarter 2026 earnings delivered a positive free cash flow of $631 million on $24.6 billion in revenue. This unforecasted liquidity provides the operational runway required to absorb the heavy initial research burn of long-cycle aerospace platforms. Positive cash generation acts as a shock absorber, allowing management to deploy capital toward advanced manufacturing facilities without taking on more debt.

Backed by a defense backlog exceeding $85 billion, Boeing possesses the internal capital needed to sustain dual fighter development. Capitalizing on this backlog while maintaining free cash flow limits the probability of severe margin compression. Boeing is positioned to dominate future air defense pipelines while sidelining its primary competitors in the fighter space.

Flying Below the Radar: Why Northrop Grumman's Dip Is NoiseThe F/A-XX announcement triggered a roughly 4% decline for Northrop Grumman NYSE: NOC. Markets often treat major defense bids as binary outcomes, penalizing the losing finalist. However, this specific sell-off misinterprets the reality of defense backlogs and operational capacity. Northrop Grumman lost a contract it never actually held, leaving its forward revenue guidance and existing financial baselines uninterrupted.

Northrop Grumman Today

NOC

Northrop Grumman

$484.26 -20.35 (-4.03%)

As of 09/30/2026 03:59 PM Eastern

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$479.02▼

$774.002.04%

15.38

$658.29

The primary driver of near-term operations for Northrop Grumman is accelerating physical production on established, locked-in programs. Total backlog reached a record $105 billion in mid-2026, anchored heavily by the B-21 Raider and the Sentinel system. A recent book-to-bill ratio of 1.84x demonstrates sustained institutional demand.

To support this expansion, capital expenditures are rising to about $1.85 billion as physical production capacity scales. With specialized engineering talent heavily constrained across the broader aerospace sector, avoiding another early-stage development program could be an operational tailwind. Management can direct all internal resources to execute the active backlog and navigate the short-term margin compression associated with early B-21 production ramps.

Scanning the Horizon: What Investors Should Watch NextThe $20 billion contract strengthens Boeing's market positioning, but immediate financial results depend entirely on execution. Investors monitoring upcoming quarterly earnings calls should focus on specific segment metrics rather than broad top-line revenue beats.

For Boeing, key indicators are operating margins in the defense segment and whether new charges tie to existing platforms. Because the Department of War explicitly defines this phase as procuring test aircraft, reliable production-stage margin realization will not materialize until the next decade. The core investment thesis centers on identifying how efficiently management shields free cash flow while ramping up specialized engineering capacity.

From here, investors evaluating Boeing's stock will be watching execution, focusing on balance sheet health and cash flow consistency as these next-generation programs evolve from classified blueprints to active test flights.

Should You Invest $1,000 in Boeing Right Now?Before you consider Boeing, you'll want to hear this.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Northrop Grumman won a $123.8M award supporting production of 67 APG-85 radars for U.S. military services.NOC's APG-85 radar boosts F-35 threat detection and tracking, supporting demand for advanced sensors.NOC's long-term APG-85 production could support recurring revenues from F-35 output and upgrades. Northrop Grumman (NOC - Free Report) is strengthening its position in the F-35 program through continued demand for its advanced APG-85 radar. The company recently received a not-to-exceed $123.8 million contract from the U.S. Navy for long-lead materials, parts, components and related efforts, supporting the production of 67 APG-85 radars for the Air Force, Marine Corps and Navy.

The work will be performed in Linthicum Heights, MD, and is expected to be completed by February 2031. The award provides Northrop Grumman with long-term production visibility while supporting the delivery schedule of F-35 aircraft across the U.S. military services.

The APG-85 is designed to provide advanced sensing and targeting capabilities for the F-35, supporting the aircraft’s ability to detect and track threats. Continued procurement of the radar highlights the importance of advanced sensor systems as the U.S. military expands and sustains its F-35 fleet.

The contract also reflects Northrop Grumman’s established role in supplying critical mission systems for the F-35. Long-term production programs such as the APG-85 can support recurring revenue opportunities as additional aircraft are produced and existing platforms receive upgrades and sustainment.

With the F-35 remaining an important part of U.S. tactical airpower plans, continued demand for its radar and other mission-critical systems could provide a steady growth opportunity for Northrop Grumman.

Defense Stocks to Keep on the RadarThe continued expansion of advanced fighter aircraft programs could also support companies supplying critical systems and technologies.

Lockheed Martin (LMT - Free Report) : Lockheed Martin is the F-35’s prime contractor and continues to produce the aircraft for the U.S. and international customers, supporting long-term demand across its fighter aircraft business.

RTX Corporation (RTX - Free Report) : RTX supplies the F-35 through its Pratt & Whitney engine business and Collins Aerospace systems. Continued F-35 production and sustainment provide recurring opportunities across propulsion, avionics and other aircraft systems.

The Zacks Rundown for NOCShares of NOC have surged 1.8% in the past three months against the industry’s 10.3% decline.

Image Source: Zacks Investment Research

The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.57X compared with its industry’s average of 2.24X.

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The Zacks Consensus Estimate for NOC’s 2026 and 2027 earnings has remained the same over the past 60 days.

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NOC stock currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A defense analyst warned that China may be watching gleefully as the Pentagon scrambles to restock two weapons classes critical to any future great-power fight. Four defense contractors sit at the center of a procurement surge that may arrive too…

President Trump used his UN General Assembly address to reference U.S. missiles and stockpiles. A defense analyst speaking on Bloomberg Businessweek called that a break with convention: “Can you imagine that happening a year ago? Usually you don’t talk about military means at the UN General Assembly and you most certainly don’t say whether you have sufficient stockpiles to wage war at the UN.” The procurement documents tell a grounded version of the same story. The Pentagon’s FY 2027 Program Acquisition Costs by Weapon System, dated April 21, 2026, funds a surge in interceptor and precision-munitions buys, and the primes named on those lines have the most to gain.

The diagnosis: “The US is running low on two really important types: air defense interceptors and long-range standoff missiles, the most important ones that would be used in any future conflict.” The stakes: “If you’re China, I would be watching quite gleefully if I was in Beijing, because all of this says that the US would be less able to bring to bear the potential military power that it might need in a hypothetical future conflict with China.”

1. Leidos: Adjacent Exposure via Hypersonics and EW Leidos (NYSE:LDOS | LDOS Price Prediction) benefits through hypersonics and electronic warfare rather than interceptor tonnage. Recent awards include an $88 million MACH-TB 2.0 hypersonic glide vehicle OTA and a $350 million USAF Electronic Warfare Mission Support contract. Q2 FY2026 revenue was $4.56 billion, up 7.2%, with backlog of $48.71 billion. Shares are down 31.7% year to date.

2. Northrop Grumman: Rocket Motors and Battle Command Northrop Grumman (NYSE:NOC) is involved in two ways. The company completed qualification activities to become a supplier on PAC-3. It also struck a $2 billion framework agreement with the Department of Defense and Lockheed Martin for solid rocket motors. Its IBCS command system was approved by the State Department for the sale of six IBCS systems to Kuwait, with letters of request from the UAE and Qatar. Q2 revenue reached $10.876 billion, up 5.1%, on record backlog of $104.69 billion. Ten multi-year missile-acceleration agreements represent up to $10 billion of sales opportunity over the next seven years.

3. Lockheed Martin: The Named Prime on Both Weapons Lockheed Martin (NYSE:LMT) is the THAAD prime named in the Pentagon budget document, listed at Dallas, Texas, Sunnyvale, Calif., and Huntsville, Ala. FY 2027 THAAD procurement is funded at 27 units for $907.2 million discretionary and 830 units for $10,528.0 million mandatory. In late June, the Missile Defense Agency awarded a seven-year contract for $35 billion to quadruple production of THAAD interceptors. Framework agreements aim to triple PAC-3 MSE production, quadruple THAAD production, and scale up PRISM production, with a PAC-3 multi-year targeted for the second half of 2026. Q2 revenue was $20.063 billion, up 10.5%, and backlog hit $230.42 billion. Missiles and Fire Control grew 19% year over year. The CFO flagged “near-term dilution” during the ramp.

4. RTX: Patriot, AMRAAM, Standard Missile Under One Roof RTX (NYSE:RTX) owns the demand map for air-defense interceptors on the Army and Navy sides. Raytheon booked over $5 billion of GEM-T Patriot Effectors in Q2. That included its first domestic GEM-T production order in over 30 years, plus $1.8 billion for AMRAAM. Aegis-based Standard Missile-3 Block IIA procurement in FY 2027 is set at 22 units for $779.0 million discretionary and 114 units for $3,439.6 million mandatory. RTX has signed five framework agreements with the Department of Defense that are not yet in backlog. Companywide Q2 revenue reached $24.708 billion, up 14.5% year over year, on backlog of $289 billion. The CEO framed the constraint plainly: “all of this … is going to be predicated on the supply chain.”

5. L3Harris: The Propulsion Bottleneck L3Harris Technologies (NYSE:LHX) inherited Aerojet Rocketdyne, which occupies the choke point of the interceptor ramp. The company signed a seven-year framework agreement for THAAD and PAC-3 production worth roughly $12 billion of future production revenue and $2 billion of future profit. L3Harris will provide all solid rocket motors and divert-and-attitude-control systems for the THAAD program. Management calls itself “the only company producing these solid rocket motors at scale on PAC-3 today.” Missile Solutions revenue rose 14% in Q2. A new automated PAC-3 facility comes online in late 2027.

What to Watch Next Two catalysts could turn this investment thesis into tangible results. First, the promised PAC-3 multi-year contract in the second half of 2026, which would pair Lockheed’s THAAD win with a matching interceptor line. Second, congressional action on the administration’s $67 billion supplemental request for weapons replenishment and the $1.1 trillion Department of Defense base budget for fiscal 2027. Multi-year procurement lines take years to convert into revenue. The gap between award and delivery is where the shortage persists.

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These 4 Earnings Reports Expose the Market’s Growing Economic DivideNorthrop Grumman NYSE: NOC Chairman and CEO Kathy Warden said the defense contractor is operating in what she described as a robust demand environment, supported by U.S. national-security spending, international demand and growth across its four operating segments.

Speaking at a Morgan Stanley aerospace and defense conference, Warden said the company again has record backlog and is adding to it through major programs including the B-21 bomber and Sentinel nuclear modernization effort. She also cited expanding munitions activity and double-digit growth in national security space.

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Defense Earnings Show Readiness Now and Modernization Ahead“We are as optimistic as ever” about bipartisan U.S. support for national-security spending and demand from allied nations, Warden said.

Budget Support and Continuing Resolution Risk Warden said Northrop’s principal programs are largely supported and fully funded through the base defense budget, rather than relying on reconciliation or supplemental appropriations. She characterized funding tied to reconciliation as potential upside to the company’s existing growth outlook.

AeroVironment’s Stock Is Down, But Drone Demand Is Taking OffWhile she said Congress is likely to extend its continuing resolution beyond early December, Warden said Northrop believes it has sufficient funding to continue work on its programs through early 2027. She added that prolonged continuing resolutions raise government costs and are not beneficial for national security, but said the company’s programs should remain on their current execution profiles.

B-21 and Sentinel Progress Warden said Northrop and the U.S. Air Force agreed earlier in the year to accelerate B-21 production rates, with the company now making facility investments to support that increase. The Air Force is evaluating whether to expand the program beyond its current plan for 100 aircraft, and Warden expects the service to share conclusions with Congress later this year.

Northrop has begun low-rate initial production of the B-21, she said, and the program is progressing through development and testing. Warden said the aircraft’s potential roles extend beyond its original nuclear-triad mission, with the Air Force viewing it as a multifunctional platform.

In Northrop’s Aeronautics Systems segment, Warden said margin improvement has been driven primarily by mature production programs rather than the B-21. She said the company expects those mature programs to remain a margin tailwind during the second half of the year.

On Sentinel, Warden said the company has matured the design and is advancing all three major components: the missile, missile-silo construction and command-and-control systems. Northrop recently integrated all components of the missile for the first time and plans its first test in 2027, earlier than previously anticipated, she said. The company expects Sentinel to complete development and testing before entering production in the 2030s.

Munitions Capacity and Mission Systems Warden said Northrop is pursuing 10 munitions-related agreements spanning about eight weapons systems. The company has qualified as a second source of solid rocket motors for Lockheed Martin’s PAC-3 program and is negotiating contract terms while ramping production.

Northrop began investing in weapons capacity after acquiring Orbital ATK in 2019, Warden said. The company has built two additional solid-rocket-motor plants and has two more facilities nearing completion, positioning it to serve increased demand from prime contractors.

Warden also highlighted Northrop’s Mission Systems segment, which supplies microelectronics, radars, electronic-warfare systems and communications suites for platforms ranging from undersea systems to space assets. She called it the company’s highest-margin and highest-return-on-invested-capital business, although it also receives Northrop’s largest research-and-development investment.

Within marine systems, Northrop’s nuclear-submarine propulsion business generates more than $1 billion in annual revenue, according to Warden. She said it should be a significant growth driver as submarine production rates rise, with volumes potentially doubling.

Space, Golden Dome and International Growth Northrop’s national security space portfolio is expanding as space becomes a more contested military domain, Warden said. She identified space resiliency and space superiority as the fastest-growing areas, though much of that work is classified. The company expects continued strong growth as U.S. space budgets rise.

Warden said Northrop’s role in the Golden Dome missile-defense architecture includes established production programs such as the Integrated Battle Command System and G/ATOR radar, as well as longer-cycle development efforts including the Glide Phase Interceptor and space-based interceptors.

The company continues to target $10 billion in annual international sales by 2031, a goal Warden said could be exceeded. She identified munitions, tactical missiles, ammunition and counter-unmanned-aircraft capabilities as the largest international growth opportunities. Other areas include command-and-control systems and Aeronautics platforms such as the E-2D and Triton.

On capital allocation, Warden said Northrop expects capital expenditures to remain elevated at about 4% to 4.5% of sales over the next several years as it invests in B-21, national security space and munitions capacity. The company intends to maintain a competitive dividend and return remaining capital to shareholders after funding investments with attractive long-term return potential.

About Northrop Grumman (NYSE:NOC)Northrop Grumman Corporation is a global aerospace and defense company that develops and delivers systems, platforms and technologies for government and commercial customers. Its activities include the design and production of military aircraft, autonomous systems, spacecraft, launch vehicles, missile-defense systems, command-and-control networks, cyber solutions, sensors and other mission-critical technologies.

The company serves the U.S. Department of Defense, other U.S. government agencies and international customers.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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 | Source: Northrop Grumman Corporation

FALLS CHURCH, Va., Sept. 17, 2026 (GLOBE NEWSWIRE) -- Northrop Grumman Corporation (NYSE: NOC) announced today that its third quarter 2026 financial results will be released on Tuesday, October 20, 2026, prior to the market opening. The earnings announcement, and accompanying earnings presentation, will be available on the company’s website at http://investor.northropgrumman.com.

Earnings Call Webcast

The company will host a live, audio only, earnings call webcast at 9:30 a.m. ET the same day. This webcast can be accessed on the company’s website at http://investor.northropgrumman.com. A replay of the webcast will be available shortly after the call and will remain available for a limited time.

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.

Contact: [email protected]

Randy Sinclair (Investors) 
[email protected]

Key Takeaways Northrop Grumman is expanding in Central and Eastern Europe as NATO allies increase defense investments.New Poland and Estonia agreements support defense integration, manufacturing, sustainment and IBCS.Northrop Grumman is deepening Polish ties on Bushmaster Chain Guns and engaging on the E-2D Hawkeye. Northrop Grumman (NOC - Free Report) is expanding its presence in Central and Eastern Europe as NATO allies increase investments in air and missile defense, weapons and surveillance systems. The company’s growing regional engagement should help it benefit from Europe’s focus on strengthening defense capabilities and increasing local industrial capacity.

Northrop Grumman recently announced new industrial agreements in Poland and Estonia to support defense system integration, manufacturing and sustainment. In Estonia, the partnerships will support the Integrated Battle Command System (IBCS), strengthening the company’s role in European command-and-control modernization.

The company is also deepening its partnership with Poland’s Huta Stalowa Wola to support production, technology transfer and sustainment of Bushmaster Chain Guns used on Polish military vehicles. Such collaborations align with European efforts to expand domestic defense manufacturing and strengthen supply-chain resilience.

Northrop Grumman is further engaging with Poland on the E-2D Advanced Hawkeye, while its Raid Hunter system addresses growing threats from drones and cruise missiles. These initiatives expand the company’s exposure to several key areas of European defense modernization.

With NATO allies increasing defense investment and prioritizing interoperability, local production and advanced capabilities, Northrop Grumman is well-positioned to secure additional opportunities across the region. Its expanding partnerships and broad portfolio should support long-term growth in the European defense market.

Defense Stocks to Keep on the RadarOther defense companies expanding their presence in Europe are discussed below:

Lockheed Martin (LMT - Free Report) : Lockheed Martin is expanding F-35 production and sustainment in Europe through industrial partnerships. In 2025, the company and Rheinmetall opened a center in Germany to support F-35 center fuselage production, strengthening its European manufacturing footprint.

RTX Corporation (RTX - Free Report) : RTX is expanding European missile-defense production through partnerships with local defense companies. In 2026, RTX and MBDA expanded cooperation to increase European production of advanced air-defense systems, supporting NATO’s growing demand for interceptors.

The Zacks Rundown for NOCShares of NOC have lost 5.7% in the past three months compared with the industry’s 7.6% decline.

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The company's 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 2.29X.

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The Zacks Consensus Estimate for NOC’s 2026 and 2027 earnings has moved north over the past 60 days.

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NOC stock currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.