RBC Capital has raised its price objective for Northrop Grumman (NYSE:NOC) to $750 from $715 and reaffirmed an Outperform rating following the company’s robust fourth-quarter 2025 performance. The stock, trading around $665.88, is trading close to its 52-week high of $683.01 and has returned 41.9% over the last 12 months, according to InvestingPro data.
Northrop Grumman reported fourth-quarter results that beat expectations on several fronts. Adjusted earnings per share for the quarter were $7.23, above the consensus estimate of $6.99. Revenue for the quarter came in at $11.7 billion versus the expected $11.61 billion. For the last twelve months, diluted EPS was $29.08, and the company carries a market capitalization of $94.5 billion, underscoring its sizable position in the Aerospace & Defense sector.
Management reiterated guidance calling for mid-single-digit organic growth in 2026. RBC Capital noted that this guidance was modestly below consensus expectations but suggested there are convertible elements to the outlook. The firm pointed to several potential sources of upside to 2026 revenue that are not fully captured in current forecasts, specifically naming potential acceleration of the B-21 program and the F/A-XX program as contributors to revenue expansion.
Analysts are projecting EPS of $28.22 for fiscal year 2026. InvestingPro data indicates that three analysts have recently revised their earnings estimates upward for the upcoming period, reflecting some optimism among sell-side forecasters that may extend beyond management’s stated guidance.
RBC Capital described its view as one of increasing confidence in the potential for upside in 2026 and the possibility of an acceleration of growth in 2027. The firm said this dynamic creates a constructive setup for the company in the near term, particularly if program timing and contract execution provide more revenue than currently modeled.
Other broker activity following the fourth-quarter release included BofA Securities lifting its price target to $750 while maintaining a Buy rating. Vertical Research Partners also adjusted its target, raising it from $625 to $688 and keeping a Hold rating in place. Vertical Research Partners characterized the results as a notable moment for the U.S. defense industry and pointed to elevated investments in capital expenditures and research and development in the sector.
The company’s involvement in civil space was also highlighted. Northrop Grumman’s solid rocket boosters are slated to power NASA’s Artemis II mission, the first crewed mission beyond the Moon since the Apollo program, with a launch planned as early as February 6, 2026. That program reinforces the firm’s footprint across both defense and aerospace markets.
Collectively, the updated price targets and reiterated guidance reflect a market reassessment of Northrop Grumman’s near-term revenue drivers and longer-term program optionality. Market participants will likely watch program schedules and contract progress closely for signals that the upside RBC and others reference is being realized.