Northrop Grumman stock gains as UBS lifts price target after major Army contract
Published on 09/08/2026 at 23:54 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Northrop Grumman Corporation stock (ISIN US6668071029) is benefiting from fresh analyst support after a large new U.S. Army contract, with UBS raising its price target on September 8, 2026 as the shares trade around USD 517 on the New York Stock Exchange.
UBS price target hike and market reaction
According to Zonebourse, Northrop Grumman stock last traded at USD 517.61 as of September 8, 2026 on a real-time Cboe BZX snapshot, up 0.51% from the prior close and leaving the shares down 2.56% over the past five trading days and 8.93% year to date.
The same overview cites a last official close of USD 514.98 and an average analyst price target of USD 647.14, implying a 25.66% upside from that close as of September 8, 2026. In parallel, Benzinga reports that UBS has maintained its Buy rating on Northrop Grumman stock and raised its price target to USD 704 on September 8, 2026, signaling that the bank sees further appreciation potential from current levels.
New USD 862.8 million U.S. Army contract
The positive analyst stance is supported by fresh business momentum: the U.S. Army has awarded Northrop Grumman an USD 862.8 million firm fixed price, indefinite delivery/indefinite quantity contract for the manufacture, inspection, testing, packaging and delivery of M1156 Precision Guidance Kits and variants, as reported on September 8, 2026. The contract adds a sizable multi-year revenue stream in the company’s ammunition and precision guidance segment.
For investors, the volume of this single contract matters because it represents roughly 2.0% of Northrop Grumman’s historical revenue base of USD 42.0 billion in fiscal year 2025, as cited in a profile of the company’s recent defense awards. While the 2025 figure is a historical reference and not a current reporting period, the comparison illustrates how one large U.S. Army award can move the needle on the group’s backlog and future cash flows.
Earnings surprises and current consensus
Beyond contracts, Northrop Grumman’s recent quarterly earnings performance has been robust. Market data compiled by Yahoo Finance show that in the quarter ended June 30, 2026 (Q2 2026), the company generated revenue of USD 10.88 billion and earnings of USD 1.09 billion, corresponding to a profit margin of 10.06% for that period.
The same earnings history indicates that Northrop Grumman delivered an EPS of USD 7.68 in Q2 2026 versus a consensus estimate of USD 6.82, creating an upside surprise of USD 0.86 per share or 12.66% for that quarter. In the preceding quarter ended March 31, 2026 (Q1 2026), EPS came in at USD 6.14 compared with an estimate of USD 6.06, a smaller positive surprise of USD 0.08 per share or 1.28%.
Looking ahead, the analyst consensus collected by Yahoo Finance points to an average EPS estimate of USD 7.16 for the current quarter ending September 2026 and USD 28.99 for the full year 2026, based on contributions from 17 to 21 analysts. The estimates suggest that after posting USD 26.34 EPS in the prior fiscal year, the company is expected to grow earnings by roughly USD 2.65 per share or about 10.1% in 2026 compared with that year, assuming these projections are met.
Analyst views and valuation context
The UBS price target increase to USD 704 places the bank comfortably above the already elevated average target of USD 647.14 documented in the Zonebourse data for Northrop Grumman stock as of September 8, 2026. Relative to the latest close of USD 514.98 cited in the same snapshot, the UBS target implies potential upside of about USD 189 per share, or roughly 36.7% if realized.
Other aggregated analyst estimates compiled by Yahoo Finance show that 21 analysts expect full-year 2026 EPS of USD 28.99, rising further to USD 30.44 in 2027. This trajectory, combined with the current share price around USD 517, leaves Northrop Grumman trading at approximately 17.8 times the 2026 EPS consensus and 17.0 times the 2027 estimate, levels that many investors may judge as consistent with a high-quality defense contractor delivering double-digit margin and steady cash flows.
Key risk: program competition and valuation
Despite the supportive contract news and earnings surprises, Northrop Grumman faces competitive program risks. An analysis by GuruFocus notes that on September 8, 2026 the Pentagon is expected to announce its decision on the Navy’s next-generation F/A-XX stealth fighter contract, with Boeing and Northrop Grumman among the leading contenders. If Northrop Grumman does not secure this high-profile program, potential future revenue and growth in its advanced air systems segment could be lower than bullish scenarios imply.
From an investor standpoint, another risk factor is valuation volatility in the broader defense sector. While the UBS target and consensus imply meaningful upside, the same Zonebourse data show that Northrop Grumman stock is still down 8.93% since the beginning of 2026 as of September 8, 2026, reminding investors that sentiment toward defense names can swing with budget debates, geopolitical shifts and program outcomes.
Representative product: Integrated Battle Command System
One of Northrop Grumman’s flagship offerings in modern air and missile defense is the Integrated Battle Command System (IBCS). A report on September 8, 2026 highlights that the company is pushing ahead with a smaller, more mobile version of IBCS designed to integrate data from multiple sensors and shooters into a unified fire control network. For the U.S. Army and allied forces, such systems are critical to defending against complex threats, and for Northrop Grumman they provide recurring revenue through upgrades, sustainment and potential export contracts.
Stock price and trading data
On the primary U.S. listing, Northrop Grumman stock trades under the ticker NOC on the New York Stock Exchange. Market data from MarketWatch indicate that on September 4, 2026 the shares closed at USD 514.98, with an intraday range between USD 512.54 and USD 525.56 and a subsequent after-hours indication of USD 528.13, up 2.55% from the official close.
Based on the USD 514.98 close as of September 4, 2026 and the historical 2025 revenue of USD 42.0 billion, Northrop Grumman’s price-to-sales ratio stands around 3.2 times that past revenue base, although investors must remember that the revenue figure is historical and the valuation will evolve with the company’s 2026 and 2027 results. With analyst consensus pointing to earnings growth and the new USD 862.8 million U.S. Army contract bolstering the backlog, the current share price and valuation levels remain central to how investors assess Northrop Grumman stock.
Northrop Grumman stock key data
- Company: Northrop Grumman Corporation
- ISIN: US6668071029
- Ticker: NOC
- Trading venue: NYSE
- Price (as of September 4, 2026): 514.98 USD
- Market capitalization: [value] USD (as of September 4, 2026)
- Sector / Industry: Aerospace and Defense
- Index membership: S&P 500
