Northrop Grumman Corporation

(New York Stock Exchange)
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Slightly Bullish +25

TD Cowen cuts target for Northrop Grumman stock from USD 590 to USD 540

Analyst downgrade AI-generated analysis

πŸ“‰ TD Cowen cut its Northrop Grumman price target from USD 590 to USD 540 on October 9, 2026, while keeping a Hold rating.

πŸ’° Second-quarter revenue reached USD 10.88 billion, up 5.1% year over year, but net profit fell to USD 1.09 billion from USD 1.17 billion.

πŸ“ˆ Management raised full-year 2026 sales guidance to USD 43.75-44.25 billion and adjusted EPS guidance to USD 28.60-29.10.

πŸ“¦ The company's order backlog grew 17% year over year to USD 105.00 billion, with second-half revenue expected to exceed USD 700 million.

⚠️ Management highlighted cost pressures in the GEM 63XL and Stand-in Attack Weapon programs as critical execution risks for the next results.

πŸ“… Northrop Grumman is scheduled to report third-quarter earnings on October 20, 2026, before the U.S. market opens.

πŸ’Ή The stock traded at EUR 442.65 on October 15, 2026, with a market cap of USD 70.4 billion and a 52-week range of USD 453-774.

Bullish Signals
  • Northrop Grumman raised its full-year 2026 sales guidance to USD 43.75-44.25 billion, signaling strong underlying demand and order flow.
  • The company's order backlog increased by 17% year over year to reach USD 105.00 billion, providing a robust foundation for future revenue growth.
  • Second-half revenue is expected to increase by more than USD 700 million, indicating continued momentum in the defense sector.
  • The company secured an USD 18.8 million U.S. Army contract on September 29, 2026, adding to its pipeline of government work.
Risk Factors
  • TD Cowen lowered its price target from USD 590 to USD 540 due to concerns over execution risks in specific programs.
  • Management explicitly cited cost pressures in the GEM 63XL and Stand-in Attack Weapon programs as key risks that could impact future profitability.
Full Analysis
TD Cowen analyst firm lowered its price target for Northrop Grumman (NOC) from USD 590 to USD 540 on October 9, 2026, while maintaining a Hold rating. This adjustment comes ahead of the company's third-quarter earnings report scheduled for October 20, 2026, and reflects concerns regarding execution risks in specific defense programs despite recent revenue growth. Northrop Grumman reported second-quarter revenue of USD 10.88 billion, representing a 5.1% year-over-year increase to USD 10.35 billion in the prior period. However, net profit declined from USD 1.17 billion to USD 1.09 billion for the quarter ended June 30, 2026, as earnings per share dropped to USD 7.68. The company's stock was trading at EUR 442.65 on October 15, 2026, with a market capitalization of approximately USD 70.4 billion. Management raised its full-year 2026 sales guidance to between USD 43.75 billion and USD 44.25 billion, while adjusting earnings-per-share guidance to a range of USD 28.60 to USD 29.10. The company's order backlog increased by 17% year over year to reach USD 105.00 billion, with second-half revenue expected to rise by more than USD 700 million. Despite the positive guidance, management explicitly cited cost pressures within the GEM 63XL and Stand-in Attack Weapon programs as key execution challenges for the upcoming quarter.