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.
Wall Street analysts forecast NOC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOC is 684.08 USD with a low forecast of 630.00 USD and a high forecast of 770.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
Wall Street analysts forecast NOC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOC is 684.08 USD with a low forecast of 630.00 USD and a high forecast of 770.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 689.130
Low
630.00
Averages
684.08
High
770.00
Current: 689.130
Low
630.00
Averages
684.08
High
770.00
BTIG
Andre Madrid
Buy
maintain
$680 -> $815
2026-01-28
New
Reason
BTIG
Andre Madrid
Price Target
$680 -> $815
AI Analysis
2026-01-28
New
maintain
Buy
Reason
BTIG analyst Andre Madrid raised the firm's price target on Northrop Grumman to $815 from $680 and keeps a Buy rating on the shares after its Q4 earnings beat. The company also continues to make strides in the unmanned domain, with MUX TACAIR award and upcoming USAF CCA Increment 2, the analyst tells investors in a research note. Northrop Grumman's sales growth is set to accelerate into the second half of FY26, setting up for a rather robust 2027, the firm added.
Morgan Stanley
Overweight
maintain
$714 -> $765
2026-01-28
New
Reason
Morgan Stanley
Price Target
$714 -> $765
2026-01-28
New
maintain
Overweight
Reason
Morgan Stanley raised the firm's price target on Northrop Grumman to $765 from $714 and keeps an Overweight rating on the shares. Q4 earnings topped estimates and Northrop closed 2025 with a record $95.7B backlog, reflecting accelerating broad-based demand for its defense products, the analyst tells investors. Multiple potential awards suggest upside to 2026 growth, the analyst added.
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UBS
Buy
maintain
$777 -> $778
2026-01-28
New
Reason
UBS
Price Target
$777 -> $778
2026-01-28
New
maintain
Buy
Reason
UBS raised the firm's price target on Northrop Grumman to $778 from $777 and keeps a Buy rating on the shares. Northrop Grumman reported a "solid" quarter, and while the 2026 free cash flow view was reiterated, EPS guidance came in light, the analyst tells investors in a research note.
TD Cowen
Hold
maintain
$630 -> $720
2026-01-28
New
Reason
TD Cowen
Price Target
$630 -> $720
2026-01-28
New
maintain
Hold
Reason
TD Cowen raised the firm's price target on Northrop Grumman to $720 from $630 and keeps a Hold rating on the shares. The firm updated its model following its Q4 beat but guidance that was below the Street but excludes B21plus-up and potential F/A-XX award.
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.
