Northrop Grumman stock trades near $570 as Q2 earnings beat and 2026 guidance support valuation

Northrop Grumman (ISIN US6668071029) stock is holding close to $570 per share as of the most recent completed New York Stock Exchange session on August 17, 2026, after the defense contractor delivered a second quarter earnings beat and reiterated full-year 2026 earnings guidance in the high-$20s per share range.

Q2 2026 earnings beat and guidance

According to a detailed second quarter overview for the aerospace group, Northrop Grumman reported earnings per share of $7.68 for the quarter ended in late July 2026, topping consensus estimates of $6.82 by $0.86 and highlighting stronger-than-expected profitability for the period. The same earnings breakdown shows that revenue for the quarter reached $10.88 billion, modestly ahead of analyst expectations of $10.80 billion and representing a 5.1% increase compared with the same quarter a year earlier, underscoring continued growth in the company’s core defense programs.

The earnings report also points to a return on equity of 24.25% and a net margin of 10.48% for the second quarter of 2026, indicating that Northrop Grumman is converting its revenue into double digit profits while maintaining an efficient capital structure. In the same communication, management set full-year 2026 guidance for earnings per share in a range between $28.60 and $29.10, providing investors with a framework that implies that the latest quarterly EPS run-rate is broadly consistent with management’s full-year expectations.

Market commentary notes that the company’s second quarter revenue and earnings performance came against a backdrop of sustained demand for advanced defense systems and services, with the 5.1% year-over-year revenue increase highlighting that Northrop Grumman is still growing its top line even as some peers experience flatter defense spending trends on individual programs. For investors, the fact that the company exceeded both revenue and EPS expectations while maintaining a clear full-year earnings range has been a key support for confidence in the 2026 outlook.

Valuation, consensus targets and price performance

Recent equity research summaries compiled in a single overview indicate that Northrop Grumman currently carries an average analyst rating categorized as a moderate buy, with a consensus 12-month price target of $659.30 per share. With the shares closing at $570.59 on August 17, 2026, that target implies an upside potential of around 15.5% from the latest regular-session price, suggesting that analysts see room for further appreciation if the company delivers on its guidance and maintains its profitability metrics.

The same market overview also notes that Northrop Grumman shares were trading at $570.66 at the beginning of 2026 and stood at $570.59 as of August 17, 2026, indicating that the stock has been essentially flat year-to-date despite the strong second quarter earnings performance. In earlier trading, a separate performance snapshot highlighted that Northrop Grumman stock closed at $585.18 on August 14, 2026, up from $521.57 on July 17, 2026, which corresponds to a 12.3% gain over that one-month period and shows how the stock moved higher following the release of the second quarter results and related contract updates.

In addition, the same performance summary indicates that as of August 14, 2026 Northrop Grumman shares were trading within a 52-week range between $479.02 and $774.00, with the then-current price of $585.18 sitting well above the 52-week low but still below the 52-week high. That profile suggests that while the stock has recovered from lower levels earlier in the year, it remains below its prior peak, leaving room for further gains if earnings and cash flows continue to support the valuation.

Another market data source reports that Northrop Grumman closed at $570.20 on August 17, 2026, which is consistent with the $570.59 level cited in other trading summaries and reinforces that the stock is currently trading in a tight band around the high-$560s to low-$570s. That price corresponds to a market capitalization in the region of $81 billion as of August 17, 2026, based on a recent capital markets article, placing Northrop Grumman among the larger U.S. defense contractors by equity value.

Profitability, balance sheet and dividend context

The same second quarter earnings overview that reported the $7.68 EPS figure and $10.88 billion in revenue also highlighted that Northrop Grumman delivered a return on equity of 24.25% and maintained a net margin of 10.48% in the quarter. These profitability measures indicate that the company is generating strong returns on the capital invested by shareholders and is keeping a solid share of revenue as net income after accounting for costs, interest, and taxes.

Northrop Grumman’s ability to produce double digit net margins in a capital-intensive industry such as aerospace and defense reflects both the value of its technology portfolio and its focus on cost control. Investors often compare these metrics with those of peer defense companies when assessing relative valuation, and the reported return on equity above 20% suggests that Northrop stands competitively within its sector on this measure.

In addition to earnings and margins, the performance overview issued in mid-August 2026 notes that Northrop Grumman’s stock offered a dividend yield of 1.69% as of August 14, 2026, providing an income component to the total return profile. That same summary indicates that the shares were trading at a trailing price-to-earnings ratio near 18.6 at that point, based on recent earnings, which places the valuation at a level that investors may compare against both the company’s own historical multiples and the broader defense sector.

With management guiding to full-year 2026 EPS in the $28.60 to $29.10 range, a simple comparison of the current share price to the midpoint of the guidance range can help investors gauge the implied forward price-to-earnings multiple. Using the August 17, 2026 closing level of $570.59 and a midpoint EPS of $28.85, the implied forward P/E multiple is just under 20, which aligns reasonably with the trailing P/E figure cited in the mid-August 2026 performance summary and suggests that the current valuation is anchored by the company’s expected earnings delivery.

Program portfolio and US defense demand

Northrop Grumman’s reported second quarter revenue and margin performance are underpinned by a portfolio of major defense and space programs, including work on strategic deterrence systems, advanced aircraft, and space-based platforms. The mid-August 2026 performance report references that the company’s record backlog continues to support visibility on future revenues, with the 5.1% year-over-year increase in quarterly revenue highlighting that existing contracts are converting into sales at a steady pace.

The company continues to benefit from long-term U.S. defense spending priorities, including investment in nuclear modernization, next-generation surveillance and reconnaissance systems, and resilient space architectures. Market commentary in recent weeks has emphasized that the broader defense sector remains supported by geopolitical tensions and sustained government budgets, which in turn provide a supportive demand environment for companies such as Northrop Grumman.

At the same time, some recent analysis notes that investors are monitoring capital spending levels and cost inflation across the defense sector, with attention on how these factors might affect margins over time. In that context, Northrop Grumman’s ability to deliver a 10.48% net margin and more than 24% return on equity in the second quarter of 2026 stands out as a sign that the company is currently managing these challenges effectively, although future quarters will remain important checkpoints.

Representative product: Space and missile defense systems

A key example of Northrop Grumman’s capabilities is its portfolio of space and missile defense systems, which include satellite platforms and missile warning architectures that support both national and allied security missions. Recent contract announcements in the broader defense space domain highlight continued demand for space-based surveillance and communication solutions, areas where Northrop Grumman has longstanding experience and existing program positions.

These systems often involve complex integration of sensors, communications, and ground control infrastructure, and they typically span multiple years of development and production. For investors, the presence of large, multi-year contracts in space and missile defense can provide an additional layer of revenue visibility beyond traditional aircraft or ground systems programs, particularly as governments prioritize resilient space architectures and missile defense capabilities.

Northrop Grumman stock and recent trading levels

As of the regular-session close on August 17, 2026, market data from a consolidated quote page indicate that Northrop Grumman stock finished at $570.59 on the New York Stock Exchange, with extended trading quotes showing modest movement in the low-single-digit dollar range after hours. Another quote source reports a very similar closing level of $570.20 for the same trading session, underlining that the shares are currently trading in a narrow band around the $570 mark.

Looking at the broader context, the mid-August 2026 performance summary that highlighted the August 14, 2026 close at $585.18 also reported a market capitalization of $83.11 billion for Northrop Grumman on that date, in line with the slightly lower $81.00 billion market cap figure cited for the August 17, 2026 close at $570.20. For investors, the combination of a market value in the low-$80 billion range, double digit net margins, and an EPS guidance range approaching $29 provides a concrete framework for evaluating the stock’s risk-reward profile.

Within its 52-week trading range from $479.02 to $774.00 as of August 14, 2026, the current price level in the high-$570s places Northrop Grumman shares comfortably above the low end but still below the high end of recent history. That positioning reflects both the recovery from earlier weakness and the market’s balancing of strong fundamentals against broader sector and macroeconomic considerations. For long-term investors focused on defense exposure, these numbers frame Northrop Grumman as a large, profitable contractor trading at a valuation that remains supported by recent earnings and guidance.

Go deeper

More on Northrop Grumman stock

Advanced defense systems portfolio

Northrop Grumman’s advanced defense systems portfolio spans space, air, land, and cyber domains, with flagship programs in strategic deterrence and next-generation aircraft and space systems. The company’s reported second quarter 2026 numbers, with revenue of $10.88 billion and EPS of $7.68, underscore how this diversified program base translates into both top-line growth and strong earnings. As governments continue to modernize their defense and space capabilities, Northrop Grumman’s mix of legacy and next-generation platforms provides multiple avenues for continued contract awards and backlog growth that can support future financial performance.

Recent price level and valuation context

Northrop Grumman stock closed at $570.59 on August 17, 2026, during regular trading on the New York Stock Exchange, with related market data indicating a market capitalization in the low-$80 billion range. That price level sits below the recent $585.18 close recorded on August 14, 2026, and below the 52-week high of $774.00, but well above the 52-week low of $479.02, illustrating that the shares have regained ground from earlier in the year while still leaving some distance to prior peak levels. For investors, these trading levels, when viewed alongside the company’s 2026 EPS guidance range of $28.60 to $29.10 and its recent trailing price-to-earnings ratio near 18.6, provide a quantitative basis for assessing whether the current valuation appropriately reflects Northrop Grumman’s earnings power and strategic positioning.

Fact box

Company: Northrop Grumman Corp.

ISIN: US6668071029

Ticker: NOC

Exchange: New York Stock Exchange

Price (as of August 17, 2026, 3:58 p.m. ET): $570.59 USD

Market cap: $81.00 billion (as of August 17, 2026)

Sector / Industry: Aerospace and Defense

Index membership: S&P 500