# Northrop Grumman Corporation (NOC) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/NOC/thesis · /stocks/NOC/memo

## Financial Snapshot

---
ticker: NOC
step: 04
generated: 2026-05-12
source: quick-research
---

### Northrop Grumman Corporation (NOC) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|--------|--------|--------|--------|------------|
| Revenue | $39.3B | $41.0B | ~$44B | +7% |
| Segment Operating Margin | 10.4% | 10.8% | ~11.2% | +40 bps |
| Adjusted EPS | $22.93 | $24.39 | $27.85+ | +14%+ |
| GAAP EPS | $4.97 (FY23 — B-21 charge) | $22.93+ (recovery) | $25–28 | recovery |

#### Segment Detail (FY2025 — Revenue)

| Segment | Revenue | YoY |
|---------|---------|-----|
| Aeronautics Systems | $12.99B | +8.0% |
| Mission Systems | $12.51B | +9.7% |
| Space Systems | $10.77B | -8.2% (Sentinel restructuring) |
| Defense Systems | $8.00B | flat |

#### Q1 2026 Results

| Metric | Q1 2026 |
|--------|---------|
| Revenue | $9.9B |
| Diluted EPS | $6.14 |
| Q4 2025 Free Cash Flow | $3.3B (FY25 total, +26%) |
| Backlog | $95.7B (record) |

#### FY2026 Guidance

| Metric | 2026 Guide |
|--------|-----------|
| Revenue | $43.5–44.0B |
| Segment Operating Margin | Low-to-mid 11% range |
| Free Cash Flow | Sequentially higher; biggest in Q4 |
| B-21 25% Acceleration Impact | Minimal in 2026; material 2027-28 |
| Sentinel Restructuring Conclusion | Late 2026 |

#### Cash Flow & Capital Allocation (FY2025)

| Metric | Value |
|--------|-------|
| Free Cash Flow | $3.3B (+26% YoY) |
| Operating Cash Flow | ~$4.5B |
| Capital Expenditures | ~$1.2B |
| Share Repurchases | ~$1.6B |
| Dividends Paid | ~$1.4B |
| Quarterly Dividend | $2.31 |
| Annual Dividend | $9.24 |
| Dividend Yield | ~1.5% |
| Cash & Marketable Securities | ~$5B |
| Total Debt | ~$15B |

#### Key Ratios (approximate)
- P/E: ~21x (FY26E EPS ~$28) | EV/EBITDA: ~14x | FCF Yield: ~4%
- Revenue Growth (FY25): +7% (Backlog +6%)
- Segment Operating Margin: ~11.2%
- Dividend Yield: ~1.5%
- Book/Bill Ratio: >1.1x (multi-year revenue visibility)

#### Growth Profile
FY25 was a strong year operationally:
- Revenue +7% to $44B
- FCF +26% to $3.3B
- Backlog at record $95.7B
- B-21 25% production acceleration agreement signed
- Sentinel restructuring progressing toward late-2026 conclusion

Q1 2026 setup ($9.9B revenue + $6.14 EPS) confirms operational momentum continuing.

The 2026-2028 narrative:
- **2026**: Production ramps + Sentinel restructuring conclusion (margin pressure subsides)
- **2027**: B-21 acceleration material; CCA program ramps; Sentinel test launch
- **2028**: B-21 + CCA + munitions all at higher production cadence; margins expand

CEO Warden has framed 2026 as a "balanced" year with major revenue impacts pushed to 2027–28. The 2027-28 setup includes "unpriced upside" not in current guidance from B-21 acceleration + CCA + munitions expansion.

#### Forward Estimates
FY2026 Guide:
- Revenue: $43.5–44.0B (flat to slightly up)
- Segment Operating Margin: 11.2–11.6%
- Adjusted EPS: ~$27.50–29.00 consensus

Bull case: B-21 acceleration starts contributing in late 2026; Sentinel restructuring concludes cleanly; CCA program awards; munitions expansion drives 2027 revenue +12-15%; multiple expands to 24x P/E; stock could reach $700+ vs. $565 currently. Bear case: B-21 cost overruns; Sentinel margin pressure extends; defense budget delays; multiple compresses to 18x P/E. Consensus targets ~$650–720 vs. trading ~$555–585 (~12–25% implied upside).

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/NOC/fundamental

## Navigation

- Overview: /stocks/NOC
- Financials (this page): /stocks/NOC/financials
- Thesis: /stocks/NOC/thesis
- Investment Memo: /stocks/NOC/memo
- Coverage universe: /stocks