Northrop Grumman Corp. (NYSE:NOC) stock is trading higher on Friday as investors rotated into defensive sectors and continued to weigh long-term U.S. defense spending expectations.

Investors appeared to shift capital out of some high-flying artificial intelligence and semiconductor stocks and into defensive sectors such as defense, healthcare and consumer staples.

The Nasdaq was down 1.14%, while the S&P 500 had fallen 0.73%.

Market Rotation Supports Defense Stocks

The broader market is seeing a rotation away from technology and toward defensive equities.

Against that backdrop, investors are evaluating the long-term demand outlook for major U.S. defense contractors, including Lockheed Martin Corp. (NYSE:LMT), RTX Corp. (NYSE:RTX), The Boeing Co. (NYSE:BA) and Northrop Grumman.

Investors are also monitoring proposals that would increase U.S. defense spending, including a proposed $1.5 trillion defense budget framework for fiscal 2027.

Global Defense Spending Remains A Tailwind

Global defense commitments continue to support sentiment across the sector. NATO Secretary-General Mark Rutte said allied nations have committed more than $1.21 trillion in additional defense spending since President Donald Trump’s first administration.

According to a White House fact sheet, NATO allies allocated more than $120 billion in additional defense spending last year and purchased more than $54 billion of U.S. defense equipment in 2025.

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Earnings In Focus

The stock movement precedes the company’s second-quarter earnings release scheduled for Tuesday. Wall Street analysts estimate earnings per share of $6.81 on quarterly revenue of $10.79 billion.

Northrop Grumman has beaten consensus EPS estimates in four consecutive quarters, including a first-quarter beat where EPS reached $6.14 against a $6.07 estimate.

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $688.50. Recent analyst moves include:

  • Goldman Sachs: Neutral (Lowers Target to $533.00) (July 14)
  • TD Cowen: Hold (Lowers Target to $580.00) (July 13)
  • Citigroup: Buy (Lowers Target to $587.00) (July 1)

NOC Stock Price Activity: Northrop Grumman shares were up 2.09% at $529.48 at the time of publication on Friday, according to Benzinga Pro data.

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