Northrop Grumman Corporation (NYSE: NOC) is a leading global aerospace and defense technology company. It provides innovative systems, products, and solutions in autonomous systems, cyber, C4ISR, space, strike, and logistics and modernization. The company competes with other major defense contractors like Lockheed Martin and Raytheon Technologies.
On February 1, 2026, Jefferies set a price target of $690 for NOC. At that time, the stock was trading at $692.26, slightly above the target by 0.33%. This indicates that the market had already priced in the positive sentiment surrounding the stock, possibly due to its strong financial performance.
Northrop Grumman reported impressive fourth-quarter results, with earnings of $7.23 per share, surpassing the consensus estimate of $6.97. The company's quarterly sales also exceeded expectations, reaching $11.7 billion compared to the anticipated $11.6 billion. Despite these strong results, the company issued a less favorable outlook for FY2026.
The company projects adjusted earnings per share (EPS) between $27.40 and $27.90, which is below market estimates of $28.85. Additionally, Northrop Grumman anticipates sales between $43.5 billion and $44 billion, slightly under the expected $44.2 billion. This cautious outlook may have contributed to the stock's 1.3% decline, trading at $670.05 after the earnings announcement.
In response to the earnings report, analysts adjusted their price targets for NOC. B of A Securities analyst Ronald Epstein maintained a Buy rating and increased the price target from $685 to $750. Similarly, BTIG analyst Andre Madrid also maintained a Buy rating, raising the price target from $680 to $815. Despite the stock's recent decline, these adjustments reflect continued confidence in Northrop Grumman's long-term prospects.
