Northrop Grumman Q4 EPS Tops Estimates as Sales Climb 9.6%
Northrop Grumman reported fourth-quarter adjusted EPS of $7.23, 3.3% above analyst estimates, with sales up 9.6% to $11.71 billion, beating forecasts by 0.8%. The company forecast 2026 revenue of $43.5–$44.0 billion with approximately 11% segment margins and flagged modest free cash flow growth.
1. Fourth-Quarter Earnings Beat Estimates
Northrop Grumman delivered adjusted EPS of $7.23 in fourth-quarter 2025, exceeding analyst estimates by 3.3%. Revenue rose 9.6% year-over-year to $11.71 billion, beating forecasts by 0.8%, driven by robust defense systems and commercial project deliveries.
2. 2026 Revenue and Margin Outlook
The company projects 2026 revenue between $43.5 billion and $44.0 billion, implying mid-single-digit growth. Segment operating margins are expected to hold around 11%, while free cash flow growth remains subdued compared with prior years.
3. Valuation and Buy Rating
The buy rating and $745.16 price target imply roughly 6% upside, supported by steady shareholder returns and potential upside from future defense contract awards such as the F/A-XX development program.