| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 53 | 17.8x | 17.3x | Around median | |
Growth | 57 | 6.5% | 7.1% | Around median | |
Quality | 69 | 11.2% | 4.5% | Top tier | |
Safety | 69 | 1.0x | 2.6x | Top tier | |
Capital Return | 78 | 1.69% | 0.06% | Top tier | |
Momentum | 42 | -14.7% | -1.6% | Around median | |
Sentiment | 54 | 16 | 3 | Around median |
The floor: what the company is worth if growth stopped today
46% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Northrop Grumman operates through four interconnected defense and space segments: Aeronautics Systems, Defense Systems, Mission Systems, and Space. Revenue comes from the development, production, and sustainment of specific platforms and programs, including the B-21 bomber, the Sentinel program, IBCS air and missile defense systems, solid rocket motors, F-35 sensors, national security space programs, and satellite services such as MRV; growth depends on transitioning from development to production and expanding manufacturing capacity to meet government and international contracts.
In Q2 fiscal 2026, revenue reached $10.9 billion, up 5% year over year and 10% sequentially, while net income was $1.1 billion and earnings per share were $7.68. Sales grew across all four segments: Aeronautics Systems by 13% with a 10.3% operating margin, Defense Systems by 2% organically with a 7.5% margin, Mission Systems by 3% with a 15.4% margin, and Space by 4% with an 8.6% margin.
New awards totaled $20 billion in Q2 fiscal 2026, raising the book-to-bill ratio to 1.84 times and increasing backlog 17% year over year to a record $105 billion. On the latest twelve-month basis shown for 2026, the company recorded revenue of $42.9 billion and net income of $4.5 billion, compared with revenue of $42.0 billion and net income of $4.2 billion in fiscal 2025.
The analyst consensus on NOC stock is “Buy,” with an average price target of $627.33, within a wide range of $500 to $745. The average target lies within the 52-week range of $479.02–774, while even the highest target of $745 remains below the top of that range, reflecting that the positive consensus does not assume a full recovery to the recorded high. The $245 spread between targets indicates clear divergence in estimates of the impact of the record backlog versus SAW and GEM 63XL execution risks and pressure on Space margins.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Northrop Grumman's revenue in Q2 fiscal 2026 reached approximately $10.9 billion, up 5% year over year and 10% sequentially. The company recorded net income of $1.1 billion and earnings per share of $7.68. New awards also totaled $20 billion, increasing backlog by 17% to $105 billion and bringing the book-to-bill ratio to 1.84 times.
The company raised its revenue range to $43.75–44.25 billion, indicating more than 5% organic growth at the midpoint. It raised adjusted earnings-per-share guidance by $1.20 to a range of $28.60–29.10, while maintaining adjusted free cash flow guidance at $3.1–3.5 billion. Management expects capital expenditures of $1.85 billion and a book-to-bill ratio of at least 1.25 times during fiscal 2026.
Aeronautics Systems led sales growth in Q2 fiscal 2026 at 13%, supported by B-21, TACAMO, and mature production programs, and achieved a 10.3% operating margin. Mission Systems achieved the highest segment margin at 15.4% with 3% sales growth, driven by maritime programs, F-35 sensors, and restricted radar programs. By comparison, Defense Systems grew 2% organically with a 7.5% margin, while Space grew 4% with an 8.6% margin due to unfavorable cost adjustments.
Automated analysis for informational purposes only — not investment advice.
Sentinel added approximately $7.6 billion to backlog in Q2 fiscal 2026, and the motors for the first five test flights entered production ahead of the integrated flight targeted for 2027. The company completed PAC-3 motor qualification and reached a $2 billion framework agreement, while ten multiyear agreements represent sales opportunities of up to $10 billion over seven years. On August 25, 2026, Kathy J. Warden expressed her expectation that the company would secure a good share of Golden Dome, but the program's potential value of more than $1 trillion is not a contract awarded entirely to Northrop Grumman.
The SAW program recorded a $68 million unfavorable adjustment in Q2 fiscal 2026 due to higher design and qualification costs, and qualification had not been completed at the time of the July 21, 2026 call. The GEM 63XL program also incurred additional material and redesign costs following a launch issue in Q1, pressuring the Space margin to 8.6% and prompting the company to lower its segment margin outlook to the low-10% range. In addition, NASA's plan revision will reduce HALO revenue in fiscal 2026, and growth in the microelectronics business slowed because of program lifecycles.
The stock has a “Buy” consensus, and the average price target is $627.33, with a low target of $500 and a high target of $745. The average lies within the 52-week range of $479.02–774, and the highest target remains below the top of that range. The $245 difference between the lowest and highest targets reflects notable uncertainty about balancing the $105 billion backlog against pressure on Space margins and SAW and GEM 63XL cost risks.