How Northrop Grumman Stock Gained 50%
From mid-May 2025 to early February 2026, Northrop Grumman (NOC)’s stock surged 51%, fueled by steady earnings beats, a record backlog, and strides in its B-21 program. Behind a modest revenue rise and margin lift, a sharp jump in valuation multiple hints at growing investor confidence—let’s unpack what drove this rally.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 5152025 | 2092026 | Change | |
|---|---|---|---|
| Stock Price ($) | 463.1 | 698.0 | 50.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 40,368.0 | 41,954.0 | 3.9% |
| Net Income Margin (%) | 9.2% | 10.0% | 8.4% |
| P/E Multiple | 18.0 | 23.8 | 31.9% |
| Shares Outstanding (Mil) | 144.6 | 142.6 | 1.4% |
| Cumulative Contribution | 50.7% |
So what is happening here? The stock soared 51%, driven by a 3.9% bump in revenue, an 8.4% lift in net margin, and a strong 32% surge in the P/E multiple. Let’s dive into what’s behind these shifts.
Here Is Why Northrop Grumman Stock Moved
- Nvidia Stock’s Cheap 25x Multiple The Loudest Warning Yet?
- What Could Rocket Advanced Micro Devices Stock to New Heights
- The Risk Factors to Watch Out For in Tesla Stock
- PayPal Stock: Strong Cash Flow Poised for a Re-Rating?
- Does Alphabet Stock Still Have Room to Run?
- Is Wall Street Underestimating Las Vegas Sands Stock’s Potential?
- Q2 2025 Earnings: Sales up 1%, op income up 31%. Free cash flow drop & B-21 charge. Backlog $89.7B.
- Q3 2025 Earnings: Sales $10.423B, diluted EPS $7.67, backlog $91.4B; continued solid performance.
- Q4 2025 Earnings Beat: EPS $7.23, revenue $11.7B beat forecasts. Optimistic 2026 outlook & record backlog.
- Record Backlog: Year-end 2025 backlog over $95 billion, an all-time company record.
- B-21 Program Gains: B-21 achieved key milestones, including 2nd aircraft flight & new production contracts.
Our Current Assesment Of NOC Stock
Opinion: We currently find NOC stock fairly priced. Why so? Have a look at the full story. Read Buy or Sell NOC Stock to see what drives our current opinion.
Risk: To get a feel for NOC’s risk, check how much it fell in past crises. It dropped about 41% in the Dot-Com Bubble and nearly 59% during the Global Financial Crisis. Even in smaller shocks like 2018 and Covid, the dips were around 36% and 30%, respectively. The recent inflation shock hurt less, with a 22% drop. So, despite solid fundamentals, NOC isn’t immune to big sell-offs when the market turns.
NOC stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.