Northrop Grumman Corporation

(New York Stock Exchange)
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Bullish +75

Northrop Grumman stock gains as UBS lifts price target after major Army contract

Analyst upgrade Defense contract AI-generated analysis

πŸ“ˆ UBS raised its price target for Northrop Grumman to $704 on September 8, 2026, maintaining a Buy rating as shares trade around $517.

πŸ’° The company secured an $862.8 million firm-fixed-price contract from the U.S. Army for M1156 Precision Guidance Kits and variants.

πŸ“Š Northrop Grumman reported Q2 2026 earnings of $1.09 billion with a profit margin of 10.06%, beating EPS estimates by 12.66%.

πŸš€ Analyst consensus projects full-year 2026 EPS growth of roughly 10.1% compared to the prior fiscal year, reaching $28.99.

βš”οΈ The company is a leading contender for the Pentagon's next-generation F/A-XX stealth fighter contract alongside Boeing.

πŸ›‘οΈ Northrop Grumman is advancing its Integrated Battle Command System (IBCS) to integrate data from multiple sensors into a unified fire control network.

Bullish Signals
  • UBS raised its price target for Northrop Grumman to $704 on September 8, 2026, maintaining a Buy rating and signaling further appreciation potential.
  • The company secured an $862.8 million firm-fixed-price contract from the U.S. Army for M1156 Precision Guidance Kits, adding a sizable multi-year revenue stream.
  • Northrop Grumman delivered Q2 2026 earnings of $1.09 billion with a profit margin of 10.06%, significantly beating EPS estimates by $0.86 per share.
  • Analyst consensus expects full-year 2026 EPS to reach $28.99, representing approximately 10.1% growth compared to the prior fiscal year.
  • The company is a leading contender for the Pentagon's next-generation F/A-XX stealth fighter contract, which could drive future revenue in its advanced air systems segment.
Risk Factors
  • Northrop Grumman faces competitive risks regarding the Pentagon's decision on the Navy's next-generation F/A-XX stealth fighter contract against rivals like Boeing.
Full Analysis
Northrop Grumman (NOC) shares rose on September 8, 2026, following a price target increase by UBS and the announcement of a significant new contract. The defense contractor secured an $862.8 million firm-fixed-price, indefinite-delivery/indefinite-quantity agreement from the U.S. Army to manufacture M1156 Precision Guidance Kits and variants. This award adds substantial multi-year revenue to the company's ammunition and precision guidance segment, representing approximately 2.0% of its historical fiscal year 2025 revenue base. The positive market reaction is underpinned by robust recent earnings performance that has consistently exceeded analyst expectations. In the quarter ended June 30, 2026, Northrop Grumman reported revenue of $10.88 billion and earnings of $1.09 billion, achieving a profit margin of 10.06%. The company delivered an EPS of $7.68 against a consensus estimate of $6.82, resulting in a positive surprise of $0.86 per share or 12.66% for the period. Analyst consensus data indicates continued growth expectations for Northrop Grumman, with average full-year 2026 EPS estimates reaching $28.99 and projected to rise to $30.44 in 2027. UBS has raised its price target to $704 while maintaining a Buy rating, implying significant upside potential relative to the stock's trading levels around $517. Investors view these metrics as consistent with a high-quality defense contractor delivering double-digit margins and steady cash flows.