Northrop Grumman Corp

Northrop generates revenue through designing and producing military aircraft, weapons systems, and defense electronics under contracts with the U.S. Department of Defense and allied governments. The company builds bombers, unmanned systems, missiles, space systems, and cybersecurity solutions. NOC makes money from cost-plus and fixed-price contracts for development and production programs. The business model benefits from long-duration programs spanning decades, providing revenue visibility and barriers to competition through classified technologies.

Northrop benefits from growing U.S. defense budgets prioritizing modernization and advanced systems in aerospace, cyber, and space domains. The company has leading positions in strategic programs including the B-21 bomber and space systems. Strengths include technological expertise, substantial backlog, and pricing power on sole-source programs. Risks include budget constraints, program delays, fixed-price contract risks, and dependence on government spending. The stock offers dividend income with growth tied to defense spending and international tensions.

Northrop competes with Lockheed Martin, the largest defense contractor, across aircraft, missiles, and space systems. Raytheon Technologies (now RTX) competes in missiles, electronics, and aircraft systems. Boeing Defense competes in military aircraft and space. General Dynamics competes in combat systems and mission systems. L3Harris competes in communication systems and electronic warfare. These companies frequently collaborate as partners while competing for prime contract awards.

Northrop pays a quarterly dividend yielding approximately 1.33%, demonstrating commitment to returning cash to shareholders while investing in capabilities and acquisitions. The company has consistently raised its dividend annually, supported by stable cash flows from multi-year defense contracts. Northrop balances dividend growth with share buybacks and strategic investments, providing investors with growing income and capital appreciation potential. The dividend is well-supported by contract backlog and predictable revenue from government programs.

NOC last closed at $682.16, up 0.32% in the most recent trading session. Over the past 52 weeks, the stock has traded between a low of $450.13 and a high of $774.00. The current price represents 72% of its 52-week range, which helps investors gauge where the stock sits relative to its recent trading history.

Among 28 analysts covering NOC, the consensus rating is Buy — 16 rate it a buy, 12 hold, and 0 sell. The average price target sits at $355.15, implying 48% downside from the current price. Keep in mind that analyst targets reflect 12-month expectations and can shift quickly after earnings reports or major company events.

Northrop Grumman Corp generated $41.52B in revenue during fiscal year 2026, with $4.14B reaching the bottom line as net income. The net profit margin of 10.0% reflects the competitive nature of its industry.

NOC trades at a P/E ratio of 24.05 on trailing earnings of $29.12 per share. That's roughly in line with the broader market average of ~20-25x. Comparing this multiple against Aerospace & Defense sector peers gives better context than the broad market alone, since P/E norms vary significantly across industries.

Performance varies across timeframes, reflecting shifting market conditions. Returns by timeframe: +18.15% (3M), +14.74% (6M), +34.65% (1Y), +16.48% (YTD). Comparing these figures against the S&P 500 and sector benchmarks helps determine whether NOC is outperforming or lagging the broader market.