The Bull Case for Northrop Grumman (NOC) Could Change Following New $100M USAF Contract and Dividend Update

• Northrop Grumman’s board declared a quarterly dividend of US$2.31 per share, payable December 17, 2025, to shareholders of record as of December 1, 2025.
• In addition, the company secured a US$100 million U.S. Air Force contract for active seeker technology, highlighting its ongoing role in advancing defense capabilities through long-term technology programs.
• This significant technology contract award offers a fresh perspective on Northrop Grumman’s prospects within the evolving defense sector investment narrative.

AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Northrop Grumman Investment Narrative Recap

Investors in Northrop Grumman need to believe in the long-term resilience of defense spending and the value of the company’s advanced technology programs. The recent US$100 million Air Force contract spotlights Northrop’s advanced capabilities, but it does not materially alter the primary near-term catalyst, execution on major multi-year programs, or lessen the core risk, which remains heavy exposure to US government contract cycles, potential delays, or changing political priorities.

Among recent announcements, the company’s reaffirmed 2025 and 2026 earnings guidance stands out as most relevant to this contract news, underlining Northrop Grumman’s aim for financial consistency even as new awards add to its backlog. With government contract dependence as a key risk, delivery on backlogged programs and strategic execution will remain in focus heading into next year. Despite robust order wins, the possibility of shifting defense budget priorities is a factor all investors should be aware of...

Read the full narrative on Northrop Grumman (it's free!)

Northrop Grumman's narrative projects $47.5 billion revenue and $4.4 billion earnings by 2028. This requires 5.5% yearly revenue growth and a $0.5 billion earnings increase from $3.9 billion currently.

Uncover how Northrop Grumman's forecasts yield a $667.21 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Fair value estimates from three members of the Simply Wall St Community for Northrop Grumman range widely from US$498.83 to US$667.21 per share. While these differing valuations reflect varied growth expectations, many are weighing how upcoming government contract milestones may influence the outlook.

Explore 3 other fair value estimates on Northrop Grumman - why the stock might be worth 12% less than the current price!

Build Your Own Northrop Grumman Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Northrop Grumman research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Northrop Grumman research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Northrop Grumman's overall financial health at a glance.

Seeking Other Investments?

Every day counts. These free picks are already gaining attention. See them before the crowd does:

• We've found 15 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com