Northrop Grumman Corporation

(New York Stock Exchange)
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Bullish +65

Northrop Grumman stock gains 2.26 percent to EUR 499.25

Analyst upgrade Earnings report Guidance raised AI-generated analysis

πŸ“ˆ Northrop Grumman stock gained 2.26% to EUR 499.25 on October 26, 2026, trading above the Xetra close.

πŸ’° Third-quarter sales surged 7% year-over-year to reach USD 11.12 billion in the fiscal period ending September 30, 2026.

πŸ“Š Diluted earnings per share increased to USD 7.89, up from USD 7.67 a year earlier.

πŸ“¦ The company's order backlog expanded significantly by 15% to USD 109.60 billion as of September 30, 2026.

πŸ“‰ Operating margins declined slightly to 11.40% from 11.90% in the previous year.

πŸš€ Baird upgraded Northrop Grumman to Outperform and raised its price target to USD 675 on October 21, 2026.

🎯 The company raised its full-year adjusted earnings guidance to a range of USD 29.35 to USD 29.75 per share.

πŸ’Ή Northrop Grumman's market capitalization stood at USD 79.3 billion with a price-to-earnings ratio of 17.62.

Bullish Signals
  • Northrop Grumman reported strong third-quarter sales growth of 7% year-over-year, reaching USD 11.12 billion.
  • The company's order backlog increased by 15% to USD 109.60 billion, providing a durable revenue base.
  • Baird upgraded Northrop Grumman to Outperform and raised its price target significantly to USD 675.
  • Northrop Grumman raised its full-year adjusted earnings guidance to USD 29.35-29.75 per share, exceeding prior expectations.
  • Diluted earnings per share grew to USD 7.89, demonstrating solid profitability despite margin compression.
Risk Factors
  • Operating margins declined to 11.40% from 11.90% year-over-year, indicating potential pressure on profitability.
  • The current stock price trades significantly below the high end of its 52-week range, suggesting room for volatility.
Full Analysis
Northrop Grumman shares rose 2.26% to EUR 499.25 on October 26, 2026, following a strong third-quarter performance reported on October 20. The company posted third-quarter sales of USD 11.12 billion, representing a 7% increase year-over-year, while diluted earnings per share reached USD 7.89 compared to USD 7.67 in the prior year. The defense contractor significantly expanded its order book, reporting a backlog of USD 109.60 billion as of September 30, 2026, which is up 15% from the previous year-end figure. This substantial growth in contract coverage provides a robust foundation for future revenue streams despite a slight decline in operating margins to 11.40% from 11.90%. Analyst sentiment remains bullish, with Baird upgrading Northrop Grumman to Outperform and raising its price target to USD 675 on October 21. The company also raised its full-year adjusted earnings guidance to a range of USD 29.35 to USD 29.75 per share, reflecting confidence in its strategic outlook and contract pipeline.