Northrop Grumman reported fourth-quarter earnings per share of 7.23, surpassing consensus estimates of 6.97 by 0.26. Revenue rose 9.6% year-over-year to 11.71 billion, ahead of the 11.61 billion forecast. The company achieved a return on equity of 25.49% and a net margin of 9.82%, reflecting strong operational leverage on higher defense contract awards and sustained demand for its C4ISR and unmanned systems segments.

The board declared a quarterly dividend of 2.31 per share, representing an annualized payout of 9.24 and a yield of approximately 1.4% based on recent trading levels. Payout ratio stands at 33.24%. Management set full-year earnings guidance in the range of 27.400 to 27.900 per share for fiscal 2026, reflecting expected contract ramp-ups in missile defense, space hardware, and advanced mission systems.

Following the stronger-than-expected quarter, two major brokerages raised their ratings to buy, while eleven maintain buy recommendations and eight have hold ratings. Consensus from 21 analysts assigns a moderate buy rating, with an average target price of 658.56. Upward revisions reflect confidence in Northrop Grumman’s order backlog growth, diversified portfolio, and stable free cash flow generation.

Insiders sold a total of 10,097 shares valued at 6.10 million over the past quarter, including 3,000 shares by the chief executive officer at an average price of 615 and 97 shares by a board director at 564.08. Insider ownership remains low at 0.23%. Institutional investors hold 83.4% of shares outstanding; notable moves include Brighton Jones LLC increasing its position by 176.3% to 2,970 shares and Woodline Partners LP adding 1,978 shares for a 367.7% gain, signaling growing confidence among hedge funds.