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gurufocus.comOCT 202 min read$NOC

Is Northrop Grumman Corp (NOC) Undervalued After Q3 Earnings Bea

Northrop Grumman Corp (NOC) reported Q3 2026 sales of $11.1B, up 7% YoY, with EPS at $7.89. Growth was driven by Aeronautics and Defense Systems. Operating margin decreased slightly to 11.4%. The company has a $110B backlog and a book-to-bill ratio of 1.5. GuruFocus values NOC at $568.33, a 10.1% discount to its current price, with a GF Score of 84/100. Insiders sold $26.4M in stock over the past year.

Original reporting
gurufocus.com
Published Oct 20, 2026, 10:30 AM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Oct 20, 2026, 11:14 AM UTC. Informational, not investment advice.
How this was made
AlphAI summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
About AlphAI AI DeskScoring methodologyReport an issue
AlphAI market briefEarnings
Primary signal
$NOC
Bullish
high confidence
Mentioned
$NOC
Relevance
8/10
AlphAI data visualization · based on gurufocus.com
Decision brief

The 30-second read

$NOCBullishHigh
01

Why it matters

The earnings beat reinforces confidence in the company's ability to deliver on major programs like the B‑21 and Sentinel ICBM, potentially lifting its valuation.

02

Market read

First‑report Q3 earnings for a major defense player; likely catalyst for short‑term price movement.

03

What to watch

Backlog of $110 bn and book‑to‑bill ratio of 1.5 could sustain growth beyond the quarter.

Relevance 8/10Novelty 8/10Timing: today

Background

Northrop Grumman is a leading U.S. defense contractor with diversified segments and a large government contract backlog.

Company-level read

Ticker impact

$NOCBullishHigh confidence
Context

Q3 2026 earnings released via 8‑K showing 7% sales growth to $11.1 bn and EPS $7.89, beating expectations.

Expected impact

likely upward as market prices in the earnings beat and higher free cash flow.

Evidence & confidence

The report contains fresh, material numbers for a large defense contractor; analysts and investors typically react positively to beats and improved cash flow.

Market effects

Sector

defense sector may see broader rally on strong earnings from a top contractor.

Regional

U.S. defense stocks could gain relative strength in the broader market.

Global

limited to investors with exposure to U.S. defense and aerospace equities.

Counterpoint

What could challenge this read

Some investors may worry about margin compression and supply‑chain risks despite the beat.

Key entities

  • Executive
    Kathy Warden

    Chair, CEO and President of Northrop Grumman, quoted in the earnings release.

Read at source← All news

StoryNorthrop Grumman posts Q3 2026 earnings beat and lifts full‑year profit outlook

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4 outlets

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