Northrop Grumman (NOC)
NYSEIndustrialsAerospace & DefenseSnapshot 2026-07-07
$548.85+0.20%
Close 2026-07-07 · 1-day change
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Track NOC free→Northrop Grumman keeps winning big defense contracts, like a $312 million Navy deal. Sales are expected near $44 billion in 2026 with profit per share around $27.65. The company maintains a stable dividend of $2.31 per share. Operating income shows stability near $989 million, supporting steady cash flow.
Margins may come under pressure, as recent guidance cuts suggest. Growth could slow below analyst expectations of 7% revenue rise. Supply chain issues and softer missile test progress may hurt future earnings and operating income.
The market price is about 11% below our fair value estimate near $632, reflecting cautious views on growth and margins. Analysts expect about 7% revenue growth, which aligns with company guidance, but margin pressures and recent guidance cuts are partly priced in.
Breaks if: Dividend per share falls below $2.31
Continue to maintain the dividend per share at $2.31 as part of capital allocation strategy.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated in 3 of last 3 quarters. The dividend per share has been consistently maintained at $2.31 from 2025-Q2 through 2026-Q1, indicating a stable capital allocation strategy. This reflects a commitment to shareholder returns despite fluctuations in net income, which was $875M in 2026-Q1, down from $1.17B in 2025-Q2.
“The company maintained a dividend per share of $2.31.”
“Dividend per share was $2.31.”
“Dividend per share was $2.31.”
Breaks if: EPS falls below $27.4 per share in FY26
Reaffirm the 2026 financial guidance for sales, segment operating income, MTM-adjusted EPS, and free cash flow.
Breaks if: Operating income declines significantly below $989 million quarterly average
Ensure stability in operating income through disciplined cost management and operational efficiency.
Stated in 4 of last 4 quarters. Operating income was $989M in 2026-Q1, showing stability compared to $632M in 2025-Q4. The focus on operating income stability is delivering consistent results.
“Operating income reported as $989M.”
“Operating income reported as $632M.”
“Operating income reported as $1,242M.”
“Operating income reported as $1,425M.”
Breaks if: Revenue falls below $43.5 billion in FY26
Reaffirm the 2026 financial guidance for sales, segment operating income, MTM-adjusted EPS, and free cash flow.