Northrop Grumman Corp. (NOC)

Northrop Grumman's stock price has been impacted by several events in the past six months. In October 2025, the company faced downward pressure due to cost overruns on its Sentinel ICBM program and losses on the B-21 Raider, and its stock slid following remarks about potential limits on share repurchases. Despite the stock price dip, Northrop Grumman raised its 2025 profit forecast, anticipating continued demand. In January 2026, defense contractor shares, including Northrop Grumman, fell after a push to ban industry dividends and buybacks, but the stock rebounded after a declaration of a large defense budget.

Demand for Northrop Grumman's products and services is primarily driven by government defense spending and geopolitical events. Geopolitical tensions have a pronounced impact on demand, and the company's sales are heavily influenced by U.S. defense spending and budget cycles. Long-term programs provide stable cash flows, and international sales are anticipated to outpace U.S. sales. Demand is more cyclical, tied to global security needs, defense budgets, and the lifecycle of major defense programs.

Northrop Grumman Corporation is a global aerospace, defense, and security company that operates within the Industrials sector, specifically in the Aerospace & Defense industry. The company specializes in providing advanced products, systems, and solutions across various domains, including autonomous systems, cyber, C4ISR, space, strike, and logistics and modernization. Its major products and capabilities include aeronautics systems, defense systems, mission systems and space systems.

Northrop Grumman maintains a significant global presence with approximately 100,000 employees and over 550 facilities across all 50 U.S. states and more than 25 countries worldwide. While the majority of its revenue comes from the United States, the company also has a strong international presence, focusing on countries like Australia, the United Kingdom, Japan, South Korea, and the Middle East. The company supports international sales and marketing, program management for allied nations, sustainment and logistics for its platforms deployed globally, collaborative research and development, and cybersecurity services.

Northrop Grumman's brand reputation has been influenced by its strategic importance and challenges related to major programs. The company is known for its innovation, but its reputation has faced scrutiny due to program cost overruns, the loss of contracts, and dependence on government funding. Despite these challenges, Northrop Grumman's strong contract backlog and its role in advancing global security underscore its continued importance and a generally strong underlying reputation in the defense sector.

Northrop Grumman Corporation is heavily dominated by institutional owners, who hold approximately 82.76% to 83% of the shares. Major institutional shareholders include Vanguard Group Inc., State Street Corp, Capital International Investors, BlackRock, Inc., and Wellington Management Group Llp. Individual investors, primarily comprising the general public, hold about 17% of the ownership. Insiders own approximately 0.20% to 4.50% of the company's stock, with Wesley G. Bush being the largest individual shareholder.