Reading the tape
NYSE: NOC
Northrop Grumman Corporation
Industrials · Aerospace & Defense
Market Cap
$80.53B
52w High
$774.00
52w Low
$453.01
P/E
17.61
Volume
706.92K
Outstanding Shares
142.03M
Price vs Fundamentals
Why The Stock Is Moving
Fundamentals are supporting the moveHigh confidence
1Y Price: 14.93%Revenue (TTM): 4.95%FCF (TTM): 86.09%P/FCF: 38th pct
What changed
The stock rose 14.93% over the last year. Revenue grew 4.95% over the trailing twelve months. Operating margin moved from 9.59% to 11.08%. Free cash flow grew 86.09% over the trailing twelve months.
What the market seems to be pricing
The stock move broadly lines up with stronger business momentum, and the shares are still only around the 38th percentile of their historical P/FCF range.
What would invalidate this read
Operating margin is at 11.08%. Revenue grew 4.95% — this thesis depends on that trajectory holding. If revenue growth, margins, or free cash flow roll over while the stock keeps climbing, more of the move would be coming from multiple expansion than business progress.
Company profile
Northrop Grumman Corporation operates as an aerospace and defense company worldwide.
CEOKathy J. Warden
SectorIndustrials
IndustryAerospace & Defense
Employees97,000
IPO dateDec 31, 1981
Valuation
Forward P/E—
EV/EBITDA13.49
Enterprise value$97.16B
Stock splits
Mar 31, 2011↑ Forward
Every 1807 shares became 2000
Jun 22, 2004↑ Forward
Every 1 shares became 2
Sep 11, 1984↑ Forward
Every 1 shares became 3
Jun 20, 1977↑ Forward
Every 1 shares became 2
Dec 22, 1975↑ Forward
Every 1000 shares became 1499
Profitability & growth
Revenue growth4.36%
Gross margin20.52%▼2.77%vs FY2024
Operating margin11.08%▼4.21%vs FY2024
ROE25.08%▼8.12%vs FY2024
Analyst consensus
RatingBuy
Target price$731.46▲29.01%
20
Buy
14
Hold
1
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 23, 2026
Q3 FY26 · EPS est $6.81 · Revenue est $10.8B
View
Dividends
$9.24/shareQuarterlyDividend Aristocrat · 43yrSafeNOC pays a dividend with a 1.63% dividend yield, 43 consecutive years of growth, growing at 9.76% annually, covered 2.6× by free cash flow.
Dividend Yield
1.63%
Annual Div / Share
$9.24
5yr CAGR
+9.76%
Doubles every ~7.4yr
Payout Ratio
28.93%
Safe
Dividend Growth Rate
3yr CAGR
+10.12%
5yr CAGR
+9.76%
10yr CAGR
+11.19%
Dividend Safety
10/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2025$9.24+12.1%
2024$8.24+10.2%
2023$7.48+8.1%
2022$6.92+10.2%
2021$6.28+8.3%
2020$5.80+9.8%
2019$5.28+10.0%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$16/yr
$1/mo
In 5 yrs
$26/yr+59%
$2/mo
In 10 yrs
$41/yr+154%
$3/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$16/yr $1/mo | $26/yr+59% $2/mo | $41/yr+154% $3/mo |
Yield-on-cost grows from 1.63% → 4.14% over 10yr
Analysis
Dividend Strengths
Dividend Aristocrat
NOC has raised its dividend for 43 consecutive years — qualifying as a Dividend Aristocrat, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 2.6× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 9.76% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.