Northrop Grumman raised its 2026 revenue outlook and increased its EPS forecast. As a result, progress on large-scale programs supporting recent performance and cost management will be key areas of focus.
Northrop Grumman reported revenue of US$11.12 billion and net income of US$1.12 billion for the previous quarter, reaffirmed its 2026 revenue outlook of US$43.75 billion-US$44.25 billion, and raised its EPS forecast by US$0.70. Although higher corporate costs and interest expense had an impact, improvements in segment performance and a lower tax rate were cited as upward drivers.
Over the long term, the company appears capable of absorbing cost pressures under fixed-price contracts, while high capital expenditure and dependence on large-scale U.S. defense programs are cited as core risks. Cash-flow sensitivity is also attracting attention. The number of shares outstanding is expected to decline at an annual rate of 0.46% over the next 3 years, which could contribute to EPS growth. In addition, the market environment indicates an upper and lower range for the stock's valuation. The target price is US$636.0, based on 2029 EPS, with a range indicated from a high of not 435? but US$815.0 to a low of US$430.0.
Consensus estimates project 2029 revenue of US$52.1 billion, profit of US$4.8 billion and EPS of US$34.03. Based on the current share price, the P/E ratio is valued at a somewhat elevated level. These figures may vary depending on the utilization of the order backlog and the progress of program launches.