NOC
Northrop Grumman Corp (NOC) Q2 2026 Earnings Call Highlights: Record Backlog and Raised ...
Article Summary
HOLD- Northrop Grumman Corp. (NYSE: NOC) reported record backlog of $105 billion, up 17% year-over-year, with $20 billion in net awards driving a book-to-bill ratio of 1.84 times and $10.9 billion in sales, supported by 5% growth across all four segments.
- Northrop Grumman raised full-year sales guidance to $44 billion at the midpoint reflecting over 5% organic growth, with plans to double annual international sales to $10 billion by 2031.
- However, margins declined in DS and Space segments due to negative EAC adjustments on two programs, with the GEM 63XL program facing issues requiring component redesign and additional costs, while the HALO program faced revenue pressure due to NASA's decision to move away from its original Gateway plans.
- Microelectronics saw temporary slowdown in growth, particularly in restricted areas, with guidance for $3.1 billion-$3.5 billion in adjusted free cash flow and $28.60-$29.
Free users see 3 BUY signals per day. Premium unlocks all of them, plus instant email alerts.
See Plans
Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 5.9% | 25% | 35.0 ptsBelow Screener (5.9%) - Weak growth |
| EPS Growth Next 5Y ? | 7.7% | 25% | 20.0 ptsWeak (7.7%) - Low expectations |
| Target Price Upside ? | 28.2% | 20% | 75.0 ptsSignificant Upside (28.2%) - Target: $656.90 vs Current: $512.29 |
| Gross Margin % ? | 22.8% | 15% | 40.0 ptsModerate (22.8%) - Adequate margins |
| Drawdown from 52-Wk High ? | -33.8% | 15% | 80.0 ptsSolid Dip (-33.8%) - Good entry zone |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About NOC
- Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally.
- It operates through four segments: Aeronautics Systems, Defense Systems, Mission Systems and Space Systems.
- The Aeronautics Systems segment designs, develops, produces, integrates, sustains, and modernizes aircraft systems.
- This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic, surveillance and reconnaissance systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems.
- Its Defense Systems segment designs, develops, integrates, and produces strategic deterrent systems, tactical weapons, and missile defense solutions; and provides sustainment, modernization, and training services for manned and unmanned aircraft and electronics systems.
- This segment also offers strategic missiles; integrated all-domain command and control systems; precision strike weapons; tactical solid rocket motors, and high-speed air-breathing and hypersonic systems; high-performance gun systems, ammunition, precision munitions, and advanced fuzes; and sustainment, operation, and modernization.
- The Mission Systems segment provides command, control, communication and computer, intelligence, surveillance, and reconnaissance systems; radar, electro-optical/infrared, and acoustic sensors; electronic warfare systems; advanced communications and network systems; microelectronics; navigation and positioning sensors; maritime power, propulsion, and payload launch systems; cyber solutions; and intelligence processing systems.
- Its Space Systems segment offers satellites, spacecraft systems, subsystems, sensors, and payloads; ground systems; missile defense systems and interceptors; and launch vehicles and related propulsion systems.
- The company was founded in 1939 and is based in Falls Church, Virginia.