NOC Stock: These Two Catalysts Drove Baird’s Upgrade On Northrop Grumman

RBC Capital kept its Sector Perform rating on Northrop Grumman with a $550 price target, suggesting a 3% upside. The company reaffirmed its 2026 sales guidance of $43.75–$44.25B and raised segment operating income and adjusted EPS guidance, forecasting growth across all segments for 2027.

RTX, Northrop Grumman, and GE Aerospace reported Q3 earnings, raising full-year guidance. RTX reported $25B sales, $2.26 adjusted EPS, and a $340B backlog. Northrop Grumman reported $11.1B sales, $7.89 EPS, and a $109.6B backlog. GE Aerospace reported $19B orders, $13.3B revenue, and $2.25 EPS. Lockheed Martin and L3Harris are set to report soon. NATO and U.S. defense spending commitments support sector growth.

Guggenheim raised its price target on Northrop Grumman (NOC) to $640 from $612, maintaining a Buy rating. The stock surged 7.7% over the past week. NOC provided 2027 guidance with 5% to 7% revenue growth and margin expansion. Q3 earnings beat estimates at $7.89 per share, and full-year guidance was raised. Baird upgraded NOC to Outperform with a $675 price target.

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.