Northrop Grumman CorporationNYSE: NOC
Industrials · Aerospace & Defense
$521.85
-5.14%
Vol: 1.2M
Research Digest
Thursday, June 18, 2026
Northrop Grumman won a $398M U.S. Space Force award on June 17 to build an Enhanced Protected Tactical Satellite Communications prototype, extending its key SATCOM franchise.
On June 17, 2026, Northrop Grumman received a $398 million firm-fixed-price award from U.S. Space Force Space Systems Command to build a free-flying Enhanced Protected Tactical SATCOM Prototype (PTS-P). The satellite will carry an advanced anti-jam payload with a Protected Tactical Waveform processor on a GEOStar-3 commercial bus, with deployment targeted no earlier than fiscal 2030. The award builds on Northrop's existing work under the SSC PTS Family of Systems program and reinforces its position in resilient, contested-environment military communications. It adds to an already record backlog of about $95.6 billion reported in Q1 2026, supporting reaffirmed 2026 guidance amid rising global defense demand. The bear case: NOC stock has fallen well off its peak, the award is modest relative to total backlog and revenue, and revenue recognition stretches out to 2030, so near-term financial impact is limited. Defense budget timing and large-program execution risk (B-21, Sentinel) remain the bigger swing factors.
Previous Market Intelligence
13 daysJun 17No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 16No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 15No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 14No significant overnight updatesNeutral▶
No material news in the last 48 hours. The most recent items (Apex space-based interceptor partnership, Jefferies and Citi price-target cuts) predate the 2026-06-12 cutoff.
May 21Northrop Grumman declared an increased quarterly dividend of $2.47/share on May 19 and was selected as a preferred payload provider in the Pentagon's Drone Dominance Program.Positive▶
Northrop Grumman's board declared an increased quarterly dividend of $2.47 per share on May 19, payable June 17 to shareholders of record on June 1. The company was named on May 18 as one of five preferred payload providers in the U.S. Department of War's Drone Dominance Program, supporting arming of 200,000 FPV attack drones by 2027. Northrop Grumman also showcased its AiON counter-drone command and control system at SOF Week 2026 in Tampa (May 18-21), and SpaceLogistics' first Mission Robotic Vehicle is set for a summer SpaceX launch alongside three Mission Extension Pods for GEO satellite life extension. Citi analyst John Godyn lowered the price target to $628 from $742 while keeping a Buy rating. The stock has slipped about 0.4% on the week and 16.4% over the past month, but is up 18.6% YoY.
May 20Northrop Grumman secured a $325.5M RangeHawk high-altitude prototype contract and a $196M MQ-4C Triton support modification on May 15, and declared a $2.47 quarterly dividend.Positive▶
On May 15, 2026, Northrop Grumman was awarded a $325.53 million cost-plus-fixed-fee contract for the RangeHawk universal payload architecture prototype, advancing high-altitude, long-endurance airborne test capabilities, with work in San Diego through May 2031. The same day, NOC received a $196.07 million contract modification for ongoing logistics, testing, and technical support of the MQ-4C Triton unmanned aerial vehicle. On May 19, the board declared a quarterly dividend of $2.47 per share, payable June 17 to holders of record June 1. NOC also delivered its 1,000th APG-83 SABR radar system on May 19, and announced that its XRQ-73 hybrid-electric uncrewed aircraft began flight testing under DARPA's SHEPARD program. The stock trades near $556, with Citi cutting its target to $628 (from $742) while keeping a Buy. The broader 24-analyst consensus is Buy with an average target near $702.
May 19Northrop Grumman was selected on May 18 as a preferred payload provider in the Pentagon's $1 billion Drone Dominance Program and won a $325.5M Army contract for the RangeHawk HALE drone plus a $196.07M MQ-4C Triton modification, even as shares are down ~18% in the past month.Mixed▶
On May 18, 2026, Northrop Grumman was selected as one of five preferred payload providers in the Department of Defense's $1 billion Drone Dominance Program, supplying its Common UAS Payload — a standardized fuze/effects module for rapid integration across small unmanned systems. The Army also awarded a $325.5M cost-plus-fixed-fee contract for RangeHawk, a high-altitude long-endurance drone for hypersonic weapons test data collection (completion by May 2031), and on May 15 the Navy awarded a $196.07M modification for MQ-4C Triton support. On May 6, the company's DARPA-sponsored XRQ-73 hybrid-electric uncrewed aircraft began flight testing. Despite the contract wins, NOC shares trade around $551.19 (May 19), down ~18% over one month and ~20% over three months, with elevated implied volatility. Analysts maintain a Buy consensus with a $701.64 average target (28% upside). The bear case: contract wins are individually modest relative to NOC's revenue base; the steep monthly drawdown signals broader defense sector de-rating and execution concerns on B-21 and Sentinel programs that overshadow incremental drone awards.
May 18Northrop Grumman secured multiple defense contracts including $325.5M Army RangeHawk drone deal and $196.07M Navy MQ-4C Triton modification despite stock retreating ~18% over the past month.Mixed▶
On May 15, 2026, Northrop Grumman received a $196.07M contract modification with the U.S. Navy and Royal Australian Air Force for MQ-4C Triton support. The Army also awarded a $325.5M cost-plus-fixed-fee contract to develop the RangeHawk high-altitude long-endurance drone designed to collect data from hypersonic weapons tests. On May 6, the company's XRQ-73 hybrid electric uncrewed aircraft began flight testing at Edwards Air Force Base for DARPA. Northrop also unveiled the LR-450 spacecraft navigation system derived from James Webb Space Telescope technology that operates without GPS. Despite these wins, shares traded between $539.14 and $552.80 on May 18 after retreating about 18% over the past month and 20% over three months. Analyst consensus remains Buy with a 2026 price target of $700.81 from 16 analysts.
May 15Northrop Grumman's hybrid-electric XRQ-73 drone reaches 5,500m at Edwards AFB as stock remains under pressure roughly 18-19% below pre-earnings levels.Mixed▶
Northrop Grumman began flight testing its XRQ-73 hybrid-electric uncrewed aircraft at Edwards Air Force Base under DARPA's SHEPARD program, reaching 5,500 meters altitude and 460 km/h. The shares remain pressured, down roughly 18-19% over the past month following the post-earnings selloff tied to higher-than-expected cash burn and a $71M charge in Space Systems. The company also unveiled an LR-450 navigation system derived from James Webb telescope technology to target the mid-size satellite market. Options activity has surged with implied volatility climbing for the May 15 contracts. Average analyst rating remains Buy with a 12-month target of about $709. Risk: continued cash-burn and Space Systems margin pressure.
May 14Northrop Grumman petitions FTC to drop 2018 solid rocket motor firewall as Lockheed publicly opposes the moveMixed▶
Northrop Grumman has petitioned the FTC to remove the 2018 consent order restricting its solid rocket motor business acquired via Orbital ATK, with rival Lockheed Martin filing opposition this week. Separately, the U.S. Air Force on May 4 awarded a $207.9 million contract modification for Global Hawk logistics support through May 2027. The 2026 Annual Meeting is set for May 20 with 11 director nominees and a shareholder proposal for an independent chair on the ballot. Shares have pulled back roughly 18% over the past month to around $549, even as 16 analysts maintain a Buy consensus with a $708 average price target. The risk is that an unfavorable FTC outcome could limit competitive scope in the solid rocket motor market.
May 13Northrop Grumman hits 200,000th bomb fuze delivery as B-21 Raider test cycle finishes in 73 days vs 180-day plan.Positive▶
On May 11 Northrop Grumman announced its 200,000th FMU-139D/B electronic fuze delivery, a major milestone for one of the most widely used U.S. bomb components. The company also disclosed that the B-21 Raider program completed a 180-day USAF developmental flight-test cycle in just 73 days, supporting a $4.5B funding agreement to boost annual B-21 production capacity by 25%. The XRQ-73 SHEPARD hybrid-electric uncrewed aircraft started flight testing at Edwards AFB, and the company highlighted 17 Florida sites totaling 1.3M sq ft of manufacturing space. Risk: shares are down ~18% over the past month around $549.
May 12Northrop Grumman B-21 Raider completes 180-day Air Force test cycle in just 73 days and begins XRQ-73 SHEPARD hybrid-electric drone flight tests at Edwards AFB.Positive▶
The B-21 Raider program completed its planned 180-day USAF developmental flight testing cycle in just 73 days, accelerating evaluation of the next-generation stealth bomber while supporting roughly $11.8B in contract value. The XRQ-73 SHEPARD hybrid-electric uncrewed aircraft began flight testing at Edwards AFB in collaboration with AFRL, featuring extra-quiet propulsion. Northrop also introduced the LR-450 navigation system for spacecraft missions and completed three company-funded solid rocket motor static tests over five months. NOC stock has retreated about 18% over the past month with consensus analyst rating Buy and 12-month target of $708.87 (29% upside). The company recognized 30+ suppliers including AWS, Microsoft and Lockheed Martin in its 2026 Supplier Excellence Awards on May 1.
May 11Northrop Grumman completed the B-21 Raider 180-day flight test cycle in just 73 days, dramatically accelerating the stealth bomber program.Positive▶
On May 10, 2026, Northrop Grumman announced the B-21 Raider program completed a planned 180-day U.S. Air Force developmental flight testing cycle in only 73 days, supporting approximately $11.8 billion in contract value. Most sorties achieved code one status, meaning aircraft returned without maintenance issues and remained immediately available. On May 6, 2026, the XRQ-73 SHEPARD hybrid-electric uncrewed aircraft (built for DARPA) began flight testing at Edwards AFB, featuring quieter electric-motor propulsion. Northrop also secured a U.S. Army contract for the second phase of its Improved Threat Detection System (ITDS) with the ATHENA multi-spectral 360-degree threat sensor. The 16-analyst consensus is Buy with a 12-month price target of $708.87 (29% upside). Risk: NOC stock has retreated about 18% over the past month, opening at $554.60 on May 11, despite Q1 EPS of $6.14 on $9.9B sales beating estimates.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| NOCNORTHROP | $521.85 | -5.14% | -5.5% | 17.3x | -0.12 | $74.1B |
| GEGENERAL | $359.14 | +0.59% | +19.1% | 41.2x | 1.38 | $373.7B |
| RTXRTX | $186.23 | -3.30% | +6.2% | 24.5x | 0.31 | $249.9B |
| BABOEING | $223.65 | -0.88% | +0.2% | 53.3x | 1.20 | $175.6B |
| LMTLOCKHEED | $512.63 | -3.70% | -2.2% | 15.9x | 0.11 | $117.8B |
| HWMHOWMET | $278.83 | -1.55% | +6.3% | 46.1x | 1.19 | $111.1B |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price below 200d MA — bearish structure.