Northrop Grumman Corp. (NOC)

Northrop Grumman's stock price has experienced fluctuations over the past six months. As of March 21, 2025, shares had declined by 8.2%, underperforming the S&P 500's 1.4% drop, partly due to softer quarterly results. However, the stock has shown resilience, with a 1.44% rise over the previous week and a 4.30% rise over the last month as of October 24, 2025. Year-to-date performance as of October 28, 2025, shows an impressive 27.3% increase. Northrop Grumman reported strong third-quarter 2025 financial results on October 21, 2025, with sales increasing 4% to $10.4 billion and diluted earnings per share (EPS) rising 10% to $7.67, surpassing analyst expectations. The company also reaffirmed its full-year 2025 free cash flow guidance and raised its EPS guidance. Full-year revenue guidance was revised down due to delayed timing on certain awards and programs. A government shutdown in October 2025 also created near-term uncertainty for defense stocks.

Demand for Northrop Grumman's products and services exhibits a seasonal pattern, with the fourth quarter typically being the largest quarter for cash generation. This seasonality is primarily driven by the timing of government contract awards and funding cycles. Anticipated production ramps on major programs like the B-21 and Sentinel, along with new contract awards and increasing international defense spending, are key factors influencing demand throughout the year. The company's outlook is shaped by these program ramp-ups, higher international defense spending, and ongoing operational investments.

Northrop Grumman Corporation is an American aerospace and defense technology company operating within the Industrial Stocks sector, specifically the Aerospace & Defense industry. The company designs, develops, manufactures, and integrates advanced systems for aeronautics, defense, missions, and space. Its major products and services span several key segments including Aeronautics Systems which focuses on advanced aircraft systems, Space Systems which provides satellites, spacecraft systems, and missile defense systems, Mission Systems which delivers command, control, communication, computer, intelligence, surveillance, and reconnaissance systems, and Defense Systems which is involved in the modernization of intercontinental ballistic missile systems.

Northrop Grumman maintains a significant global presence, with operations across the United States, Asia-Pacific, Europe, and other international regions. The company has a substantial manufacturing presence in the United States, including advanced facilities in Arizona dedicated to missile defense and space manufacturing. In 2024, 87% of the company's revenues were derived from the U.S. federal government, with 12% from international sources.

Northrop Grumman maintains a strong brand reputation, particularly within the aerospace and defense sectors. The company is recognized for its innovation in autonomous systems and hypersonic technologies. Its consistent performance in operational tests, such as the IBCS program achieving 32 for 32 successful flight tests, further solidifies its technical credibility. In 2025, Northrop Grumman was listed on Forbes' "World's Best Employers," "America's Best Employers For Company Culture," and "Most Trusted Companies in America," reflecting a positive perception among employees and the broader public. The company's close ties to key Pentagon priorities and its role as a "system architect" for U.S. strategic programs contribute to its reliable image among institutional investors.

Northrop Grumman Corporation's ownership is predominantly institutional. Major institutional owners include State Street Corp, Vanguard Group Inc, Capital Research and Management Company, BlackRock, Inc., and Wellington Management Group Llp. Individual investors hold a smaller stake, typically around 14-17%. Wesley G. Bush is noted as the largest individual shareholder, owning 1.15% of the company's shares.