NOC Stock Eyes Third Green Week: Northrop Grumman CEO Sees Strong Demand Across Defense And Space As Backlog Surges To $110B

Baird upgraded Northrop Grumman to 'Outperform' with a $675 price target. The rating is based on valuation, EPS revisions, and visibility. The stock has risen 4.57% in 5 days and 10.93% year-to-date.

Australia plans to locally produce solid rocket motors (SRMs) with Northrop Grumman, backed by $126.9 million in initial funding. The SRMs will be used in Lockheed Martin's Guided Multiple Launch Rocket System (GMLRS). Northrop Grumman aims to begin industry engagements for local suppliers, with a 2030 deadline for production. A test flight of an Australian-made SRM was successful in August, developed with Thales.

Northrop Grumman (NOC) reported Q3 revenue of $11.12B (+7% YoY), net income of $1.124B, and EPS of $7.89. Bookings were $16.4B with a backlog of ~$110B and a book-to-bill ratio of 1.5. The company raised its 2026 adjusted EPS outlook, completed the IMS divestiture, and plans to increase B-21 production rates with a $2.5B investment. It also aims to deploy 50 of 150 Space Systems satellites within six months.

Baird upgraded Northrop Grumman (NOC) to Outperform, raising its price target to $675. The defense contractor beat Q3 2026 revenue and EPS expectations, raised annual guidance, and reported a record backlog. Management expects long-term growth through 2028. NOC's stock trades at a P/E ratio of 16.92, with a market cap of $75.9 billion.

Northrop Grumman (NOC) reported a record $110 billion backlog. CEO Kathy Warden and CFO John Greene discussed 2027 growth outlook (5-7%), driven by programs like B-21, Sentinel, and international sales. They mentioned potential strategic moves for the microelectronics business. Free cash flow is expected to rise to $3.3B-$3.7B in 2027, supported by sales growth and margin expansion. All segments are projected to grow, with Defense Systems nearing 10% growth.

Northrop Grumman (NOC) reported Q3 2026 revenue of $11.1B (+7% YoY) with record backlog of $110B (+20% YoY). EPS grew 3% to $7.89. Adjusted free cash flow rose 40% to $1.8B. Guidance raised for full-year EPS and segment operating income. 2027 outlook projects 5-7% sales growth with margin expansion. B-21 program and international sales are key growth drivers. Microelectronics business under strategic review.