Northrop Grumman (NYSE:NOC) Stock Declines Amidst Strong Q1 Earnings and Lowered EPS Guidance

Font: Financial Modeling Prep  • Apr 23, 2026

• Despite strong first-quarter results, Northrop Grumman (NYSE:NOC) stock is currently falling due to a lower-than-expected full-year EPS forecast.
• A UBS analyst set a new price target of $745, implying a 26.35% potential upside, leading some to view the recent 16% stock decline as a "Strong Buy" opportunity.
• The company's Q1 earnings per share of $6.14 and sales of $9.88 billion both surpassed analyst estimates, but the 2026 adjusted EPS guidance of between $27.40 and $27.90 fell short of the $28.01 consensus.

Northrop Grumman (NYSE:NOC) is a global aerospace and defense technology company. It operates in various sectors, including aeronautics, defense systems, and space systems, providing advanced solutions to government and commercial customers. On April 23, 2026, a UBS analyst set a new price target on Northrop Grumman at $745, implying a 26.35% potential upside from its price of $589.65 at the time.

Despite this optimistic target, the company's stock price is currently falling. As highlighted by Benzinga, shares are sinking after Northrop Grumman reported its first-quarter earnings. This recent drop follows a 16% stock decline, which has led some to consider the stock a "Strong Buy," as noted by Seeking Alpha, because it is trading below its perceived value.

The company's first-quarter results were strong, beating analyst expectations. Northrop Grumman reported quarterly earnings of $6.14 per share, which was higher than the consensus estimate of $6.09. The company also posted quarterly sales of $9.88 billion, surpassing the analyst estimate of $9.75 billion and showing a 4.36 percent increase from the same quarter a year ago.

The negative market reaction is tied to the company's forecast for the full year. Northrop Grumman affirmed its 2026 adjusted earnings per share (EPS) guidance to be between $27.40 and $27.90. EPS represents the company's profit per share, and this forecast is below the analyst consensus estimate of $28.01, causing concern among investors.

While the company's sales outlook of $43.50 billion to $44 billion is in line with estimates, the lower earnings guidance suggests a "ramp-up year" with muted margin growth. This short-term outlook contrasts with the view that the stock's recent decline presents a valuable buying opportunity, aligning with the significant upside suggested by the UBS price target.