Northrop Grumman Corporation (NOC), headquartered in Virginia, is a prominent global player in the aerospace, defense, and security sectors. Its market capitalization stands at around $83.9 billion. Northrop Grumman develops and delivers advanced systems across four major divisions - Aeronautics Systems; Defense Systems; Mission Systems; and Space Systems - providing critical capabilities ranging from stealth bombers and unmanned surveillance aircraft to missile defense, sensor technologies, and space launch solutions.

Shares of Northrop Grumman have rallied by 24.9% on a year-to-date (YTD) basis and surged 16.1% over the past 52 weeks, outpacing the S&P 500 Index’s ($SPX) 9% gains in 2025 and 14.3% gains over the past year.

Narrowing the focus, NOC stock trailed behind the iShares U.S. Aerospace & Defense ETF (ITA), revealing a broader sector strength with around 33% YTD returns and 33.7% over the past year.

Northrop Grumman’s shares are back in the cockpit. After a shaky start to the year, weighed down by B-21 bomber cost pressures, the Q2 2025 earnings report flipped the script. On July 22, the defense giant delivered EPS of $8.15, up from $6.36 last year, alongside $10.4 billion in sales – a modest year-over-year (YoY) growth but still beating Street expectations. Wall Street cheered as management nudged full-year EPS guidance to between $25 and $25.40, hinting at stronger skies ahead. That was enough to flip sentiment from cautious to confident.

Then came the tailwinds, including geopolitical flashpoints and Washington’s push for bigger defense budgets. Wall Street suddenly saw not just a contractor fighting through cost turbulence, but a player primed to ride rising demand for jets and advanced systems.

For the current fiscal year, ending in December 2025, analysts expect Northrop Grumman to report EPS growth of 2.7% YoY to $26.78, on a diluted basis. Plus, the company has beaten EPS expectations in three of the last four quarters, slipping below estimates only once.

NOC has an overall “Moderate Buy” rating. Of the 22 analysts covering the stock, 10 recommend a “Strong Buy,” one advises a “Moderate Buy” rating, and the remaining 11 analysts are cautious, giving a “Hold” rating.

Analyst sentiment on NOC stock has barely shifted in recent months, but there is a slight bearish tilt. Two months ago, it had 11 “Strong Buy” ratings, now down to 10.

Yet, optimism hasn’t vanished. On Aug. 19, UBS reiterated its “Buy” rating and $690 price target on NOC stock, implying an upside potential of 17.7%. The brokerage firm cited strong momentum from the B-21 Raider program, which could expand beyond the current 100 aircraft plan with $4.5 billion in added funding.

The mean price target of $592 represents only a slight increase from NOC’s current price.