Baird lifts Northrop Grumman stock target to USD 675 after Q3 results

Published on 10/27/2026 at 11:58 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Baird lifted its target to USD 675 on October 21, 2026. Northrop Grumman stock costs EUR 503.10 on October 27, 2026, 0.46 percent above Xetra close.

Results and valuation in numbers

Baird moved its Northrop Grumman target to USD 675 on October 21, 2026.
Third-quarter 2026 sales rose 7.00 percent to USD 11.12 billion and backlog reached USD 109.60 billion.
Northrop Grumman stock trades at EUR 503.10 at 11:45 a.m. CET at Lang & Schwarz on October 27, 2026, 0.46 percent above the Xetra close of October 26, 2026.

Northrop Grumman, US6668071029, Illustration mit AI erstellt.

Northrop Grumman (ISIN US6668071029) carries Baird's USD 675 price target after the firm upgraded the stock from Neutral to Outperform on October 21, 2026, as Markets Insider reported. The company had raised its 2026 earnings outlook after third-quarter results dated October 20, 2026.

Guidance rises with backlog

Northrop Grumman reported third-quarter 2026 sales of USD 11.12 billion, up 7.00 percent from USD 10.42 billion in the third quarter of 2025. Diluted earnings per share reached USD 7.89, up 3.00 percent from USD 7.67, while net earnings increased 2.00 percent to USD 1.12 billion.

The stronger operating picture came with a larger order base. Third-quarter net awards totaled USD 16.40 billion, and backlog reached USD 109.60 billion, up 15.00 percent from December 31, 2025. Northrop Grumman raised its 2026 segment operating income guidance to USD 4.94 billion to USD 5.04 billion from USD 4.85 billion to USD 5.00 billion previously.

What does the backlog mean for cash flow?

The answer is positive but not frictionless. Adjusted free cash flow reached USD 1.81 billion in the third quarter of 2026, up 44.00 percent from USD 1.26 billion a year earlier, helped by USD 371.00 million from equipment sold to a customer. The company kept full-year adjusted free cash flow guidance at USD 3.10 billion to USD 3.50 billion.

MarketScreener reported on October 20, 2026, that Jefferies kept a Hold rating with a USD 580 target, while RBC Capital Markets kept Sector Perform with a USD 525 target. The counterpoint is margin execution: the reported operating margin fell to 11.40 percent from 11.90 percent in the year-ago quarter, according to MarketScreener.

Three dates shaped the setup

On October 20, 2026, Northrop Grumman reported USD 11.12 billion in third-quarter sales and USD 16.40 billion in net awards, according to Northrop Grumman. On the same date, backlog reached USD 109.60 billion. On October 21, 2026, Baird set the USD 675 target and upgraded its rating.

Stock trades above Xetra close

The German quotation puts the latest move in perspective. The stock's 52-week range on the NYSE was USD 470.06 to USD 774.00 as of October 26, 2026, while market capitalization stood at USD 80.3 billion. For investors, the key tension is clear: backlog and guidance improved, but the operating margin still requires delivery.

Northrop Grumman stock was trading at EUR 503.10 at Lang & Schwarz on October 27, 2026, at 11:45 a.m. CET, up 0.46 percent versus the Xetra close of October 26, 2026 at EUR 500.80. The further course of trading is shown by the continuously updated real-time quote of Northrop Grumman stock.