Northrop Grumman cautious ahead Q2 preview, Jefferies trims price target on the shares

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-28, 09:07.

Northrop Grumman (US6668071029) sits in focus after a cautious analyst move on Wall Street. Jefferies has lowered its price target on the NYSE-listed defense contractor to 580 dollars while keeping a Hold recommendation on the shares, according to a June 26 update.Jefferies Q2 preview via Yahoo Finance

What Jefferies now expects

Jefferies’ latest note on Northrop Grumman estimates that second-quarter 2026 revenue will grow around 5 percent year over year, a moderate pace in the current U.S. defense sector backdrop.Jefferies Q2 preview via Yahoo Finance The firm reduced its price target from 620 dollars to 580 dollars, signalling a more cautious stance on valuation while keeping the rating at Hold.Summary of the Jefferies update

In its preview, Jefferies expects Northrop Grumman to maintain its full-year 2026 guidance rather than raise or cut the outlook.Jefferies Q2 preview via Yahoo Finance The analyst report highlights a forecast for fiscal 2026 earnings per share of 27.70 dollars, slightly below the consensus estimate of 27.93 dollars, positioning the house marginally under broader market expectations.Consensus comparison in analyst summary

Consensus picture and guidance signals

Northrop Grumman is part of the S&P 500 and competes with peers such as Lockheed Martin and General Dynamics in large U.S. defense programs, where consensus estimates currently point to mid-single-digit revenue growth for 2026 and steady margins.Nasdaq data on NOC and peer comparison During the first-quarter 2026 earnings call, Corporate Vice President and CFO John Greene reaffirmed full-year guidance for sales, earnings and cash flow.CFO guidance comments cited in Q1 call recap

Greene confirmed that Northrop Grumman still expects 2026 sales to land between 43.5 billion and 44 billion dollars and is targeting free cash flow of 3.1 billion to 3.5 billion dollars for the year.Guidance corridor for sales and cash flow He also pointed to high single-digit sequential sales growth for the second quarter and an increase in capital expenditures to around 1.85 billion dollars, driven in part by an additional 200 million dollars earmarked to expand production capacity for the B-21 bomber program.Capex expansion details and B-21 investment

The programs behind the numbers

Northrop Grumman generates most of its revenue from long-term defense contracts with the U.S. government, including strategic programs such as the B-21 Raider stealth bomber and various space and missile defense systems.Company information on the B-21 Raider program The group is organized around segments like Aeronautics Systems, Defense Systems, Mission Systems and Space Systems, each tied to specific platforms and technologies.

Where the stock trades today

Northrop Grumman shares (US6668071029) last closed on the NYSE at 500.03 dollars on 2026-06-26 at 22:00, according to recent exchange data.Latest NOC quote and trading data

Disclaimer: This text is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security.