A Business at a Glance
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NORTHROP GRUMMAN CORP /DE/
NOC
$78.0B
Mkt Cap
$542.24
+1.64%
NORTHROP GRUMMAN CORP /DE/ (NOC) has a current P/E ratio of 18.6, compared to its historical median P/E of 16.4. The stock is currently considered Fair based on its historical valuation range.
NORTHROP GRUMMAN CORP /DE/ (NOC) has a 5-year average return on invested capital (ROIC) of 13.5%. This indicates solid capital allocation.
NORTHROP GRUMMAN CORP /DE/ (NOC) has a market capitalization of $77.0B. It is classified as a large-cap stock.
Yes, NORTHROP GRUMMAN CORP /DE/ (NOC) pays a dividend with a trailing twelve-month yield of 1.72%. The company also returns capital through share buybacks, with a buyback yield of 1.57%.
Based on historical P/E analysis, NORTHROP GRUMMAN CORP /DE/ (NOC) appears fair. The current P/E of 18.6 is 14% above its historical median of 16.4. The estimated fair value CAGR (P/E method) is 5.3%.
NORTHROP GRUMMAN CORP /DE/ (NOC) operates in the Search, Detection, Navigation, Guidance, Aeronautical Sys industry, within the Technology sector.
Northrop Grumman is a leading global aerospace and defense technology company that delivers products, services, and solutions principally to the U.S. Department of Defense and intelligence community, with 84% of sales to the U.S. government. The company operates through four segments: Aeronautics Systems (military aircraft design, production, and sustainment including the B-21 Raider and F-35 fuselage production); Defense Systems (strategic missiles, tactical weapons, missile defense, and command-and-control systems); Mission Systems (radar, sensors, communications, microelectronics, and cyber solutions); and Space Systems (satellites, spacecraft, missile defense interceptors, and launch vehicles). The business model is primarily contract-based with the U.S. government, combining development, production, and sustainment work across restricted and unrestricted programs, with approximately 40% of Aeronautics, 30% of Mission Systems, and 45% of Space Systems performed through restricted programs. Northrop Grumman competes with Boeing, General Dynamics, L3Harris, Lockheed Martin, and RTX, with work often shared among competitors on major programs. The company has built a record backlog of $95.7 billion as of December 31, 2025, providing sales coverage for over two years, supported by rising global defense budgets and international demand for air and missile defense, advanced munitions, and airborne capabilities.
【Rising global defense demand】 Management expects continued robust demand driven by rising global defense budgets, with countries worldwide recognizing a fundamental shift in the geopolitical environment and increasing military spending. The company anticipates broad-based sales growth across all four segments in 2026, with particular strength in strategic deterrence modernization (Sentinel and B-21 programs), air and missile defense capabilities, and international opportunities where allied nations are prioritizing investments in advanced defense systems. Margin expansion is expected to continue as development programs transition to production and the company achieves operational leverage and cost efficiencies. Management is making strategic capital investments to expand production capacity in areas such as solid rocket motors, missile defense, and advanced technologies, with the expectation of generating improved returns over the multi-year investment period as production rates accelerate.
| Metric | Target | Period |
|---|---|---|
| Sales | $43.5 billion–$44 billion | FY2026 |
| Earnings Per Share (mark-to-market adjusted) | $27.40–$27.90 | FY2026 |
| Free Cash Flow | $3.1 billion–$3.5 billion | FY2026 |
| Capital Expenditures | $1.85 billion | FY2026 |
| Segment Operating Margin Rate | low to mid-11% | FY2026 |
Sales (FY2026): “For 2026, we expect sales to be between $43.5 billion-$44 billion, representing mid-single-digit growth at the company.”
Earnings Per Share (mark-to-market adjusted) (FY2026): “2026 mark-to-market adjusted earnings per share are expected between $27.40-$27.90, up mid-single digits.”
Free Cash Flow (FY2026): “we are maintaining the free cash flow guidance range of $3.1 billion-$3.5 billion.”
Capital Expenditures (FY2026): “we now expect $1.85 billion in 2026 capital expenditures.”
Segment Operating Margin Rate (FY2026): “Segment operating income guidance reflects continued strong performance and a low- to mid-11% margin rate.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 42.4B | 42.0B | 41.0B | 39.3B | 36.6B | 35.7B |
| Net Income | 4.6B | 4.2B | 4.2B | 2.1B | 4.9B | 7.0B |
| EPS | $32.11 | $29.08 | $28.34 | $13.53 | $31.47 | $43.54 |
| Free Cash Flow | 3.3B | 3.3B | 2.6B | 2.1B | 1.5B | 2.2B |
| ROIC | 13.5% | 13.2% | 13.4% | 8.4% | 12.3% | 20.2% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.92 | 1.07 | 1.20 | 1.08 | 0.98 | 1.13 |
| Dividends/Share | $9.32 | $8.99 | $8.05 | $7.34 | $6.76 | $6.16 |
| Operating Income | 4.9B | 4.5B | 4.4B | 2.5B | 3.6B | 5.7B |
| Operating Margin | 11.6% | 10.8% | 10.6% | 6.5% | 9.8% | 15.8% |
| ROE | 26.7% | 26.2% | 27.7% | 13.7% | 34.7% | 59.6% |
| Shares Outstanding | 142M | 144M | 147M | 152M | 156M | 161M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 24.0B | 23.5B | 24.7B | 26.0B | 30.1B | 33.8B | 36.8B | 35.7B | 36.6B | 39.3B | 41.0B | 42.0B | 42.4B |
| Gross Margin | 56.5% | 56.1% | 55.5% | 52.8% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | 569M | 712M | 705M | 639M | 764M | 953M | 1.1B | 1.1B | 1.2B | 1.2B | 1.1B | 1.1B | 1.1B |
| SG&A | 2.4B | 2.6B | 2.6B | 2.7B | 3.0B | 3.3B | 3.4B | 3.6B | 3.9B | 4.0B | 4.0B | 4.0B | 4.0B |
| EBIT | 3.2B | 3.1B | 3.3B | 3.2B | 3.8B | 4.0B | 4.1B | 5.7B | 3.6B | 2.5B | 4.4B | 4.5B | 4.9B |
| Op. Margin | 13.3% | 13.1% | 13.3% | 12.4% | 12.6% | 11.7% | 11.0% | 15.8% | 9.8% | 6.5% | 10.6% | 10.8% | 11.6% |
| Net Income | 2.1B | 2.0B | 2.0B | 2.9B | 3.2B | 2.2B | 3.2B | 7.0B | 4.9B | 2.1B | 4.2B | 4.2B | 4.6B |
| Net Margin | 8.6% | 8.5% | 8.3% | 11.0% | 10.7% | 6.6% | 8.7% | 19.6% | 13.4% | 5.2% | 10.2% | 10.0% | 10.8% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.0B | 141M | 0 | 0 | 231M | 231M |
| Returns on Capital | |||||||||||||
| ROIC | 22.1% | 23.9% | 25.9% | 21.1% | 20.6% | 16.6% | 16.7% | 20.2% | 12.3% | 8.4% | 13.4% | 13.2% | 13.5% |
| ROE | 23.2% | 31.2% | 37.5% | 45.9% | 42.2% | 26.4% | 32.9% | 59.6% | 34.7% | 13.7% | 27.7% | 26.2% | 26.7% |
| ROA | 7.8% | 7.8% | 8.2% | 9.4% | 8.9% | 5.7% | 7.5% | 16.1% | 11.3% | 4.6% | 8.7% | 8.3% | 9.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 2.6B | 2.2B | 2.8B | 2.6B | 3.8B | 4.3B | 4.3B | 3.6B | 2.9B | 3.9B | 4.4B | 4.8B | 4.7B |
| Free Cash Flow | 2.0B | 1.7B | 1.9B | 1.7B | 2.6B | 3.0B | 2.9B | 2.2B | 1.5B | 2.1B | 2.6B | 3.3B | 3.3B |
| Owner Earnings | 2.0B | 1.6B | 2.3B | 2.0B | 2.9B | 2.9B | 2.9B | 2.2B | 1.5B | 2.4B | 2.9B | 3.2B | 3.0B |
| CapEx | 561M | 471M | 920M | 928M | 1.2B | 1.3B | 1.4B | 1.4B | 1.4B | 1.8B | 1.8B | 1.4B | 1.4B |
| Maint. CapEx | 462M | 467M | 456M | 475M | 800M | 1.3B | 1.3B | 1.2B | 1.3B | 1.3B | 1.4B | 1.5B | 1.5B |
| Growth CapEx | 99M | 4.0M | 464M | 453M | 449M | 0 | 153M | 176M | 93M | 437M | 397M | 0 | 0 |
| D&A | 462M | 467M | 456M | 475M | 800M | 1.3B | 1.3B | 1.2B | 1.3B | 1.3B | 1.4B | 1.5B | 1.5B |
| CapEx/OCF | 21.6% | 21.8% | 32.7% | 35.5% | 32.6% | 29.4% | 33.0% | 39.7% | 49.5% | 45.8% | 40.3% | 30.5% | 29.2% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 563M | 603M | 640M | 689M | 821M | 880M | 953M | 983M | 1.1B | 1.1B | 1.2B | 1.3B | 1.3B |
| Dividend Yield | 2.6% | 2.2% | 2.0% | 1.7% | 1.7% | 1.8% | 1.9% | 1.9% | 1.5% | 1.7% | 1.7% | 1.7% | 1.7% |
| Share Buybacks | 2.7B | 3.2B | 1.5B | 393M | 1.3B | 744M | 490M | 3.7B | 1.5B | 1.5B | 2.5B | 1.6B | 1.2B |
| Buyback Yield | 10.0% | 10.3% | 4.3% | 0.8% | 3.4% | 1.4% | 1.1% | 6.4% | 1.9% | 2.2% | 3.7% | 2.0% | 1.6% |
| Stock-Based Comp | 134M | 99M | 93M | 94M | 86M | 127M | 90M | 94M | 99M | 87M | 101M | 119M | 119M |
| Debt Repayment | 0 | 0 | 321M | 0 | 2.3B | 500M | 1.0B | 2.2B | 0 | 1.1B | 0 | 1.5B | 1.5B |
| Balance Sheet | |||||||||||||
| Net Debt | 1.7B | 3.9B | 4.5B | 3.7B | 12.7B | 12.6B | 11.3B | 10.7B | 12.1B | 12.6B | 13.7B | 13.0B | 13.1B |
| Cash & Equiv. | 3.9B | 2.3B | 2.5B | 11.2B | 1.6B | 2.2B | 4.9B | 3.5B | 2.6B | 3.1B | 4.4B | 4.4B | 2.6B |
| Long-Term Debt | 5.9B | 6.4B | 7.1B | 14.4B | 13.9B | 12.8B | 14.3B | 12.8B | 11.8B | 13.8B | 14.7B | 15.2B | 14.4B |
| Debt/Equity | 0.82 | 1.18 | 1.32 | 2.14 | 1.78 | 1.73 | 1.57 | 1.13 | 0.98 | 1.08 | 1.20 | 1.07 | 0.92 |
| Interest Coverage | 11.3 | 10.2 | 10.9 | 8.9 | 6.7 | 7.5 | 6.9 | 10.2 | 7.1 | 4.7 | 7.0 | 6.8 | 7.4 |
| Equity | 7.2B | 5.5B | 5.4B | 7.1B | 8.2B | 8.8B | 10.6B | 12.9B | 15.3B | 14.8B | 15.3B | 16.7B | 17.1B |
| Total Assets | 26.6B | 24.4B | 25.6B | 35.1B | 37.7B | 41.1B | 44.5B | 42.6B | 43.8B | 46.5B | 49.4B | 51.4B | 50.0B |
| Total Liabilities | 19.3B | 18.9B | 20.4B | 28.0B | 29.5B | 32.3B | 33.9B | 29.7B | 28.4B | 31.7B | 34.1B | 34.7B | 32.9B |
| Intangibles | 101M | 77M | 61M | 52M | 1.4B | 1.0B | 783M | 578M | 384M | 305M | 254M | 208M | 208M |
| Retained Earnings | 12.4B | 10.7B | 10.6B | 6.9B | 8.1B | 8.7B | 10.5B | 12.9B | 15.3B | 14.8B | 15.3B | 16.7B | 17.1B |
| Working Capital | 1.9B | 877M | 1.2B | 9.5B | 1.4B | 1.3B | 5.8B | 2.9B | 901M | 1.8B | 146M | 1.4B | 1.9B |
| Current Assets | 7.8B | 6.3B | 6.9B | 16.6B | 9.7B | 10.7B | 15.3B | 12.4B | 12.5B | 13.7B | 14.3B | 15.3B | 14.8B |
| Current Liabilities | 5.9B | 5.5B | 5.6B | 7.1B | 8.3B | 9.4B | 9.6B | 9.5B | 11.6B | 11.9B | 14.1B | 13.9B | 12.8B |
| Per Share Data | |||||||||||||
| EPS | 9.75 | 10.39 | 11.32 | 16.34 | 18.49 | 13.22 | 19.03 | 43.54 | 31.47 | 13.53 | 28.34 | 29.08 | 32.11 |
| Owner EPS | 9.41 | 8.33 | 12.54 | 11.64 | 16.84 | 17.08 | 17.59 | 13.89 | 9.38 | 16.12 | 19.81 | 22.02 | 21.40 |
| Book Value | 34.09 | 28.83 | 29.72 | 40.62 | 46.88 | 51.86 | 63.13 | 80.34 | 98.42 | 97.36 | 103.81 | 115.94 | 120.50 |
| Cash Flow/Share | 12.22 | 11.29 | 15.59 | 14.88 | 21.91 | 25.27 | 25.69 | 22.17 | 18.65 | 25.50 | 29.79 | 33.08 | 42.83 |
| Dividends/Share | 2.71 | 3.10 | 3.50 | 3.90 | 4.70 | 5.16 | 5.67 | 6.16 | 6.76 | 7.34 | 8.05 | 8.99 | 9.32 |
| Shares Out. | 212.2M | 191.5M | 180.5M | 175.6M | 174.6M | 170.0M | 167.6M | 160.9M | 155.6M | 152.0M | 147.3M | 143.8M | 142.0M |
| Valuation | |||||||||||||
| P/E Ratio | 12.9 | 15.5 | 16.4 | 16.5 | 11.6 | 23.7 | 14.6 | 8.3 | 16.3 | 33.2 | 16.3 | 19.8 | 16.9 |
| P/FCF | 13.2 | 18.3 | 19.1 | 28.1 | 14.6 | 17.5 | 16.2 | 26.9 | 54.4 | 32.5 | 26.0 | 25.0 | 23.3 |
| EV/EBIT | 7.8 | 10.6 | 11.9 | 12.5 | 12.8 | 15.8 | 12.7 | 11.3 | 24.3 | 31.1 | 17.3 | 19.9 | 18.3 |
| Price/Book | 3.7 | 5.6 | 6.9 | 6.6 | 4.6 | 6.0 | 4.4 | 4.5 | 5.2 | 4.6 | 4.4 | 5.0 | 4.5 |
| Price/Sales | 2.2 | 2.8 | 3.3 | 1.5 | 1.6 | 1.4 | 1.4 | 1.5 | 1.9 | 1.7 | 1.7 | 1.8 | 1.8 |
| FCF Yield | 7.6% | 5.5% | 5.2% | 3.6% | 6.9% | 5.7% | 6.2% | 3.7% | 1.8% | 3.1% | 3.9% | 4.0% | 4.3% |
| Market Cap | 26.8B | 30.9B | 36.1B | 47.4B | 37.6B | 53.2B | 46.6B | 57.9B | 79.7B | 68.2B | 68.0B | 82.8B | 77.0B |
| Avg. Price | 103.31 | 140.64 | 181.23 | 229.18 | 274.49 | 285.73 | 297.52 | 322.46 | 438.59 | 436.87 | 464.04 | 522.94 | 542.24 |
| Year-End Price | 126.24 | 161.18 | 200.01 | 269.72 | 215.27 | 312.76 | 278.17 | 360.04 | 512.33 | 448.72 | 461.83 | 575.53 | 542.24 |
NORTHROP GRUMMAN CORP /DE/ passes 5 of 9 quality checks, suggesting mixed fundamentals.
NORTHROP GRUMMAN CORP /DE/ trades at 18.6x trailing earnings, compared to its 15-year median P/E of 16.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 23.3x vs a median of 25.5x. The company's 5-year average ROIC is 13.5%. Total shareholder yield (dividends + buybacks) is 3.3%. At current prices, the estimated annualized return to fair value is -2.0%.
NORTHROP GRUMMAN CORP /DE/ (NOC) reported annual revenue of $42.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
NORTHROP GRUMMAN CORP /DE/ (NOC) has a net profit margin of 10.0%. This is a modest margin.
NORTHROP GRUMMAN CORP /DE/ (NOC) generated $3.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
NORTHROP GRUMMAN CORP /DE/ (NOC) has a debt-to-equity ratio of 1.07. This indicates moderate leverage.
NORTHROP GRUMMAN CORP /DE/ (NOC) reported earnings per share (EPS) of $29.08 in its most recent fiscal year.
NORTHROP GRUMMAN CORP /DE/ (NOC) has a return on equity (ROE) of 26.2%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 19 years of financial data for NORTHROP GRUMMAN CORP /DE/ (NOC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
NORTHROP GRUMMAN CORP /DE/ (NOC) has a book value per share of $115.94, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued robust demand driven by rising global defense budgets, with countries worldwide recognizing a fundamental shift in the geopolitical environment and increasing military spending. The company anticipates broad-based sales growth across all four segments in 2026, with particular strength in strategic deterrence modernization (Sentinel and B-21 programs), air and missile defense capabilities, and international opportunities where allied nations are prioritizing investments in advanced defense systems. Margin expansion is expected to continue as development programs transition to production and the company achieves operational leverage and cost efficiencies. Management is making strategic capital investments to expand production capacity in areas such as solid rocket motors, missile defense, and advanced technologies, with the expectation of generating improved returns over the multi-year investment period as production rates accelerate.
Based on recent SEC filings and earnings calls, NORTHROP GRUMMAN CORP /DE/ (NOC) has provided the following forward guidance: Sales: $43.5 billion–$44 billion (FY2026); Earnings Per Share (mark-to-market adjusted): $27.40–$27.90 (FY2026); Free Cash Flow: $3.1 billion–$3.5 billion (FY2026); Capital Expenditures: $1.85 billion (FY2026); Segment Operating Margin Rate: low to mid-11% (FY2026).
No recent press releases.