Jefferies Lowers Northrop Grumman (NOC) Price Forecast despite Steady Revenue Growth Outlook

Northrop Grumman Corporation (NYSE:NOC) is included among the 10 Best Dividend Stocks to Buy for Passive Income.

Jefferies Lowers Northrop Grumman (NOC) Price Forecast despite Steady Revenue Growth Outlook

On June 26, Jefferies lowered its price recommendation on Northrop Grumman Corporation (NYSE:NOC) to $580 from $620. It reiterated a Hold rating on the shares. In its second-quarter preview, the firm estimated that Northrop Grumman’s revenue would grow about 5% year over year. It also expects the company to keep its full-year 2026 guidance unchanged. Jefferies noted that its FY26 earnings per share estimate of $27.70 is slightly below the consensus estimate of $27.93.

During the company’s first-quarter 2026 earnings call, Corporate Vice President and CFO John Greene reaffirmed the company’s full-year guidance for sales, earnings, and cash flow. He said the company still expects 2026 sales to come in between $43.5 billion and $44 billion.

Greene also said that Northrop is looking for high single-digit sequential sales growth in the second quarter. He noted that the company’s capital spending plan has increased from its original 2026 forecast. Capital expenditures are now expected to reach $1.85 billion after the company added another $200 million to expand production capacity for the B-21 program.

Even with the additional spending, Greene said Northrop Grumman is keeping its free cash flow guidance unchanged at $3.1 billion to $3.5 billion.

Northrop Grumman Corporation (NYSE:NOC) is a global aerospace and defense technology company with four operating segments: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems.

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