At a glance
Northrop Grumman Corporation is worth $78.89B, about 19 times its fiscal 2025 earnings. Revenue grew 2.2% to $41.95B in fiscal 2025, with 10.0% kept as profit; over 5 years it has grown 2.7% a year. It pays a 1.72% dividend yield, raised every year for at least 9 years, and returned $16.48B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −3.2% over the past year with dividends reinvested and +11.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 26.1% in the 2020 crash (S&P 500: 33.7%) and 11.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 13 months and 3 months after the lows.
The business in plain English
Northrop Grumman designs and builds military aircraft, missiles, space systems, radars and other defense electronics. Its main customer is the U.S. government, chiefly the Department of War (the Pentagon) and the intelligence community. U.S. government sales made up 84% of the $41.95 billion in revenue for 2025. Products brought in 80% of revenue and services 20%. Customers in the United States accounted for 86% of sales, Europe 8% and Asia/Pacific 5%.
The company reports four segments. Aeronautics Systems ($13.0 billion, 31% of revenue) builds the B-21 Raider stealth bomber, makes F-35 fuselage sections and produces the Global Hawk and Triton surveillance drones. Mission Systems ($12.5 billion, 30%) makes radars, sensors, electronic warfare, cyber and navigation systems, including the F-35's fire control radar. Space Systems ($10.8 billion, 26%) builds satellites, missile defense interceptors, the Cygnus cargo spacecraft and solid rocket boosters. Defense Systems ($8.0 billion, 19%) develops Sentinel, the planned replacement for U.S. land-based nuclear missiles, and makes ammunition, tactical missiles and rocket motors. The shares add to more than 100% because segments also sell to each other.
Much of the work is classified. About 45% of Space Systems and 40% of Aeronautics Systems business runs through restricted programs, which limits public detail. Rivals include Lockheed Martin, RTX, General Dynamics, Boeing, L3Harris and a growing number of startups.
Price history
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NOC -3.2% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Product | $33.74B | 80.4% |
| Service | $8.21B | 19.6% |
By business segment
| Aeronautics Systems | $12.99B | 31% |
| Mission Systems | $12.51B | 29.8% |
| Space Systems | $10.77B | 25.7% |
| Defense Systems | $8.00B | 19.1% |
By geography
| United States | $35.96B | 85.7% |
| Europe | $3.29B | 7.8% |
| Asia/Pacific | $1.92B | 4.6% |
| All Other | $785.0M | 1.9% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $11.12B, up 6.7% from a year earlier, and net income was $1.12B (+2.2%).
- For fiscal 2025, revenue was $41.95B (+2.2% year over year; +2.7% a year from FY2020 to FY2025) with a 10% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +2.7% watch |
|---|---|
| Operating margin | 10.8% watch |
| Free cash flow margin | 7.9% watch |
| Return on equity (FY2025) | 25.1% good |
| Return on assets (FY2025) | 8.1% good |
| Net cash (cash minus debt) | $-11.45B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $36.80B | $3.19B | $2.88B |
| FY2021 | $35.67B | $7.00B | $2.15B |
| FY2022 | $36.60B | $4.90B | $1.47B |
| FY2023 | $39.29B | $2.06B | $2.10B |
| FY2024 | $41.03B | $4.17B | $2.62B |
| FY2025 | $41.95B | $4.18B | $3.31B |
Valuation snapshot
| Market value | $78.89B |
|---|---|
| P/E ratio | 19.1 |
| Dividend yield | 1.72% |
Rank among 1514 US companies
Market value at each year end
Northrop Grumman’s market value went from $41.00B at the end of 2016 to $78.89B on Nov 2, 2026, up 92%; since the end of 2025 it is down 3%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $78.89B | -3.1% |
| 2025 | $81.38B | +19.0% |
| 2024 | $68.37B | -3.1% |
| 2023 | $70.59B | -15.9% |
| 2022 | $83.98B | +36.8% |
| 2021 | $61.37B | +20.8% |
| 2020 | $50.80B | -12.4% |
| 2019 | $57.97B | +36.3% |
| 2018 | $42.52B | -20.4% |
| 2017 | $53.43B | +30.3% |
| 2016 | $41.00B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| NOC price data to Nov 2, 2026 | -1.4% | -3.2% | +7.1% | +11.3% | +11.1% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -1.4% |
| 2025 | +23.6% |
| 2024 | +1.9% |
| 2023 | -12.8% |
| 2022 | +43.0% |
| 2021 | +29.3% |
| 2020 | -9.9% |
| 2019 | +42.7% |
| 2018 | -19.0% |
| 2017 | +33.9% |
| 2016 | +25.2% |
| 2015 | +30.5% |
| 2014 | +31.4% |
| 2013 | +74.4% |
| 2012 | +19.6% |
| 2011 | +2.9% |
| 2010 | +19.6% |
| 2009 | +28.5% |
| 2008 | -41.2% |
| 2007 | +18.2% |
| 2006 | +14.4% |
| 2005 | +12.4% |
| 2004 | +15.5% |
| 2003 | +0.1% |
| 2002 | -2.5% |
| 2001 | +23.4% |
| 2000 | +56.9% |
| 1999 | -24.4% |
| 1998 | -35.2% |
| 1997 | +41.2% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 54.7% over that stretch · deepest drop along the way 58.7%, back to its old high 31.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 26% over that stretch · deepest drop along the way 26.1%, back to its old high 13.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 29.1% over that stretch · deepest drop along the way 11.2%, back to its old high 2.6 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 0 open-market purchases and 26 sales ($2.6M), 25 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Feb 27, 2026 | Roshan S Roeder CVP & Pres. Mission Systems | sell (plan) | $1.3M |
| Mar 2, 2026 | Kathryn G Simpson Corp VP & General Counsel | sell (plan) | $650K |
| Feb 19, 2026 | Roshan S Roeder CVP & Pres. Mission Systems | sell (plan) | $373K |
| Feb 19, 2026 | Kathryn G Simpson Corp VP & General Counsel | sell (plan) | $141K |
| Feb 19, 2026 | Michael A Hardesty Corp VP, Controller & CAO | sell | $108K |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.22% | Mar 31, 2026 |
| Capital International Investors | 4.3% | Jun 30, 2026 |
ETFs with the most weight in NOC
| SHLD Global X Defense Tech ETF | 6.92% |
| HACK Amplify Cybersecurity ETF | 6.54% |
| PPA Invesco Aerospace & Defense ETF | 6.11% |
| ITA iShares U.S. Aerospace & Defense ETF | 5.05% |
| NATO Themes Transatlantic Defense ETF | 4.78% |
| ROKT SPDR S&P Kensho Final Frontiers ETF | 4.74% |
| MISL First Trust Indxx Aerospace & Defense ETF | 4.69% |
| XAR SPDR S&P Aerospace & Defense ETF | 4.18% |
What could go wrong
- Heavy reliance on one customer. The U.S. government provided 84% of 2025 sales. It can delay, cut or cancel programs, issue stop-work orders or end contracts at will, usually covering costs incurred but not the full expected profit.
- Cost overruns on complex, long-term programs. Profits depend on estimates of what multi-year programs will cost. If costs grow or estimates change, the company may book lower profits or losses, which can hurt earnings sharply.
- Overruns can trigger congressional review. Under the Nunn-McCurdy Act, big cost increases or schedule slips must be reported to Congress. Some of the company's programs have faced this, and it can lead to restructuring or cancellation.
- Budget delays and government shutdowns. Late or reduced funding can disrupt programs and hurt results. That includes long continuing resolutions (stopgap bills that hold spending at prior levels), government shutdowns or a breach of the debt ceiling.
- Contract terms could limit dividends, buybacks. The government can add contract terms that bar share repurchases or dividends for a time if a contractor underperforms, falls behind or underinvests on a contract. That would directly affect shareholder payouts.
- Hazardous work and environmental cleanup costs. The company makes rocket motors, ammunition and other high-risk products. Accidents, contamination and cleanup obligations can bring government and third-party claims, unexpected costs and damage to its reputation.
Recent events
- Quarterly results released
- Executive or board change
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Executive or board change
- Quarterly results released
- Executive or board change
For income and retirement investors
Northrop Grumman has raised its dividend for at least 9 straight years through fiscal 2025. Dividends per share rose from $5.67 in 2020 to $8.99 in 2025, about 9.7% a year. The 2025 dividend used about 31% of earnings and 39% of free cash flow (cash left after capital spending). The yield was a modest 1.73% as of October 28, 2026. Buybacks have been larger: $10.8 billion from 2021 to 2025, versus $5.6 billion in dividends, and the share count fell about 10% in the five years to October 2026.
The stock fell 58.7% in the 2008 financial crisis and took about 31 months to recover. In the 2020 COVID crash it dropped 26.1% and recovered in about 13 months. In the 2022 bear market it rose 29.1% while the broad market fell. It also dropped as much as 37.8% in the year to October 28, 2026. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Northrop Grumman make money?
Northrop Grumman makes most of its money selling military aircraft, missiles, space systems and defense electronics to the U.S. government, which accounted for 84% of its $41.95 billion in 2025 sales. Products brought in about 80% of revenue and services 20%. The largest segments were Aeronautics Systems (31% of revenue), home of the B-21 Raider bomber, and Mission Systems (30%), which makes radars, sensors and cyber systems. Space Systems (26%) and Defense Systems (19%) round out the business.
Does Northrop Grumman raise its dividend every year?
Yes, so far. SEC data show at least 9 consecutive annual increases through fiscal 2025, and the streak may be longer. Dividends per share grew from $5.67 in 2020 to $8.99 in 2025, about 9.7% a year, and used about 31% of 2025 earnings. The yield was 1.73% as of October 28, 2026. One caveat: the 10-K warns that new government contract terms could bar dividends or buybacks for a time if a contractor underperforms on a contract.
How has Northrop Grumman stock performed?
Over the 10 years to October 28, 2026, the stock returned about 11% a year, with sharp drops along the way. Annualized returns were 10.8% over five years and 7.1% over three years, but the shares lost 5.6% over the prior 12 months and fell as much as 37.8% from a high during that span. Over about 30 years of price history, its deepest decline was 67.1%. In calendar 2025 the stock gained 23.6%.
How much debt does Northrop Grumman have?
As of September 30, 2026, Northrop Grumman had $15.2 billion of total debt and $3.7 billion in cash and investments, so debt exceeded cash by about $11.5 billion. Shareholders' equity was $18.7 billion and total assets were $52.5 billion. For context, the company produced $3.3 billion of free cash flow and $4.18 billion of net income in 2025. Interest on debt must be paid before any money goes to dividends or buybacks.
Who are Northrop Grumman's main competitors?
The 10-K names Lockheed Martin, RTX, General Dynamics, Boeing and L3Harris Technologies as competitors, along with a growing number of new entrants and startups. These companies bid for many of the same defense, intelligence and federal civil contracts. Because the U.S. government provided 84% of 2025 sales, losing big competitions can hurt future revenue, and the company lists competition among its main risk factors.