Northrop Grumman Surges After Trump's $1.5 Trillion Defense Budget Proposal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
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Should l Buy NOC?
Source: Benzinga
Northrop Grumman (NOC) shares surged 10% early Thursday following Trump's proposal for a $1.5 trillion defense budget for 2027, significantly exceeding the previous $1 trillion target, which has sparked optimism among investors in the defense sector.
Trump's emphasis on defense companies prioritizing infrastructure investments over dividends and stock buybacks resonated across the industry, driving stock prices up for major players like Lockheed Martin and RTX. Additionally, Northrop Grumman announced plans with Kratos Defense to rapidly develop a collaborative combat aircraft for the U.S. Marine Corps, integrating Kratos' unmanned systems with Northrop's advanced mission kits, aiming to provide a cost-effective combat solution that enhances competitive positioning.
This proposal is expected to significantly boost Northrop Grumman's revenue and market confidence, despite potential challenges related to capital investments and profit margins in the future.
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Analyst Views on NOC
Wall Street analysts forecast NOC stock price to fall
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 701.120
Low
630.00
Averages
684.08
High
770.00
Current: 701.120
Low
630.00
Averages
684.08
High
770.00
About NOC
Northrop Grumman Corporation is a global aerospace and defense technology company. Its segments include Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. Aeronautics Systems is engaged in the design, development, production, integration, sustainment and modernization of military aircraft systems for the United States Air Force, the United States Navy, other United States government agencies, and international customers. Defense Systems is engaged in the design, engineering, development, integration, and manufacturing of deterrent systems, advanced tactical weapons, and missile defense solutions. Mission Systems is a provider of mission solutions and multifunction systems. Its products and services include command, control, communications and computers, and reconnaissance (C4ISR) systems. Space Systems delivers end-to-end mission solutions through the design, development, integration, production and operation of space, missile defense, and launch systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Lockheed Martin's Gains: Among these deals, Lockheed Martin secured a $9 billion contract for 730 PAC-3 MSE missiles from Saudi Arabia, making it the largest beneficiary and further solidifying its leadership position in the global defense market.
- Boeing's Contract: Boeing won a $2.3 billion contract in Singapore for four P-8A Poseidon patrol aircraft and their weapon systems, although RTX will not gain additional revenue, Boeing's defense division is expected to improve its financial performance.
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- Major Contract Beneficiary: Lockheed Martin secured a $9 billion contract for 730 PAC-3 MSE missiles and related equipment for Saudi Arabia on January 30, underscoring its dominant position in the international defense market and expected to significantly enhance the company's revenue and profits.
- Boeing's Contract: Boeing won a $2.3 billion contract on January 20 for Singapore's purchase of four P-8A Poseidon patrol aircraft, which, despite its defense division still being unprofitable, will provide crucial cash flow that may improve its financial standing.
- Israeli Orders: Israel is ordering 30 AH-64E Apache attack helicopters and related equipment from Lockheed and Boeing for a total of $3.8 billion, showcasing the strong competitive edge of both companies in the global defense market while laying a foundation for future growth.
See More
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- Military Background: Grady served over 40 years in the U.S. Navy, holding the position of 12th Vice Chairman and participating in nearly every major military operation, which will bolster Northrop Grumman's competitiveness in the defense sector.
- Educational Credentials: Grady holds an undergraduate degree from the University of Notre Dame and master's degrees from Georgetown University and the National War College, providing a strong academic foundation for his decision-making on the board.
- Company Vision: Northrop Grumman is committed to delivering differentiating technology to the U.S. and its allies, and Grady's appointment is expected to further strengthen the company's leadership in the global aerospace and defense technology landscape.
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