Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. The company's Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems. Its Defense Systems segment designs, develops, integrates, and produces tactical weapons and missile defense solutions, and provides sustainment, modernization, and training services for manned and unmanned aircraft and electronics systems. It also offers integrated, all-domain command, and control battle management systems, precision strike weapons; high speed air-breathing and hypersonic systems; high-performance gun systems, ammunition, precision munitions and advanced fuzes; aircraft and mission systems logistics support, sustainment, operations and modernization; and warfighter training services. The company's Mission Systems segment offers command, control, communications and computers, intelligence, surveillance, and reconnaissance systems; radar, electro-optical/infrared and acoustic sensors; electronic warfare systems; advanced communications and network systems; cyber solutions; intelligence processing systems; navigation; and maritime power, propulsion, and payload launch systems. Its Space Systems segment offers satellites, spacecraft systems, subsystems, sensors, and payloads; ground systems; missile defense systems and interceptors; launch vehicles and related propulsion systems; and strategic missiles. Northrop Grumman Corporation was founded in 1939 and is based in Falls Church, Virginia.

Northrop Grumman appears to be a high-quality defense business, but the current valuation already reflects a significant portion of its strengths. A P/E ratio of 17.26 is noticeably below the industry median, which supports the case for relative undervaluation on an earnings basis. At the same time, P/S of 1.96, P/B of 5.64, and P/FCF of 25.20 are above the industry medians, suggesting that the market is paying a premium for resilience and quality, especially in terms of the balance sheet and cash flow. The P/E trend over recent quarters has been volatile, but overall it has declined from peak levels, which is positive, although it does not eliminate concerns about valuation on book and cash metrics. Profitability looks strong: ROE of 28.05%, ROA of 9.15%, and ROI of 14.63% are significantly above the industry median and improving over time, confirming high capital efficiency. Operating margin of 11.63% and net margin of 10.80% also look solid and show that the company is able to convert revenue into profit effectively. Gross margin looks weaker: 20.52% is below the industry median, which limits re-rating potential and points to pressure on cost of goods sold or contract structure. Liquidity is acceptable but not outstanding: the quick ratio of 1.06 and current ratio of 1.17 are below the industry median, so the cushion in working capital is limited. Debt burden is moderate in absolute terms, but debt/equity of 0.81 is above the median, and long-term debt remains significant, which adds caution to the valuation. Revenue, operating income, and net income generally remain at high levels, while equity is growing, supporting fundamental stability. Dividend yield of 0.46% is low, so the dividend factor here is more of an additional than a primary valuation driver. Overall, the picture is mixed: the business is high-quality and profitable, but some multiples already look expensive, while the balance sheet and gross margin do not justify an aggressive increase in the target price. For an investor, this is more a story of stability and quality with limited upside than one of clear deep undervaluation.

Northrop Grumman Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, незначительно вырос. Рынок на стороне быков.

Medium index, slightly up. The market is on the bulls' side.

Слабый индекс, незначительно упал. Приток средств в лонги остался положительным, но снизился.

Weak index, slightly down. The inflow of funds into longs remained positive, but decreased.

Business quality and profitability are strong, but premium P/B, P/S, and P/FCF multiples, together with moderate debt, limit revaluation potential.

Leidos Holdings, Inc. LDOS is expanding its Artificial Intelligence (AI) capabilities as government agencies and defense organizations increasingly adopt AI to improve decision-making, automate processes and manage large volumes of data. The company is integrating AI across defense, cybersecurity, logistics and other mission-critical applications, creating opportunities to benefit from the growing demand for secure and reliable AI solutions.
Leidos is using AI to support national security and defense operations by helping military customers analyze complex information and make faster, data-driven decisions. Its AI capabilities are also being applied to cybersecurity, where the company is developing solutions that can identify vulnerabilities and help organizations respond to emerging threats more efficiently.
The company is further expanding AI into military logistics, using predictive technologies to help customers anticipate requirements, improve resource planning and strengthen operational readiness. These efforts complement Leidos’ broader focus on digital modernization and mission-critical technology.
Leidos is also working with leading technology companies to accelerate the adoption of generative and agentic AI across government workflows. Its partnership with OpenAI, announced in January 2026, supports the company’s efforts to integrate advanced AI into areas such as national security, defense and digital modernization.
As AI adoption continues to grow across the defense sector, Leidos’ expanding AI capabilities and focus on secure, mission-critical applications position it well to benefit from the long-term shift toward AI-enabled government and military operations.
Other Companies Benefiting From AI Demand
Other companies that are likely to benefit from the expanding AI market are discussed below:
Northrop Grumman Corporation NOC: The company is integrating AI and machine learning into complex mission systems, including decision-support, autonomous systems and edge-processing applications. In March 2026, its Talon IQ autonomous testbed successfully flew with Shield AI’s Hivemind software, demonstrating the ability to integrate third-party AI systems into an open architecture.
Lockheed Martin Corporation LMT: The company is expanding AI across defense applications, including space-based systems and decision-support technologies. Its AI Fight Club provides a simulated environment for testing AI systems across air, land, sea and space, while recent efforts are focused on using AI to help warfighters process complex information and make faster decisions.
The Zacks Rundown for LDOS
Shares of LDOS have surged 15.4% in the past three months compared with the industry’s 4.5% growth.
Image Source: Zacks Investment Research
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 0.96X compared with its industry’s average of 11.87X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LDOS’ 2026 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
LDOS stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Is Leidos Strengthening Its Position in the Growing AI Market?

Northrop Grumman Corporation NOC is strengthening its position in the growing military training and simulation market with advanced virtual, live and immersive training solutions. As military forces worldwide prepare for increasingly complex threats, demand for realistic, technology-driven training systems is rising. Northrop Grumman’s capabilities help warfighters improve mission readiness while providing cost-effective solutions to prepare for challenging operational environments.
A key area of focus is the company’s Live, Virtual and Constructive (LVC) training capabilities, which combine live exercises with virtual and computer-generated environments. Northrop Grumman also offers its Combat Electromagnetic Environment Simulator, which provides warfighters with realistic training against complex electromagnetic threats. These solutions enable military customers to conduct sophisticated training without relying entirely on costly live exercises, supporting more efficient and flexible mission preparation.
Notably, Northrop Grumman’s on-demand LVC training framework is integrated into training for both fifth-generation F-35 and fourth-generation F-16 fighter aircraft. The company also has experience integrating platforms into secure cross-domain environments spanning multiple military services. This expertise allows Northrop Grumman to support increasingly connected training environments and strengthens its competitive position as defense forces adopt advanced simulation and mission-readiness technologies.
As global defense spending increases and militaries focus on preparing for more advanced threats, demand for military training and simulation solutions is expected to remain strong. Northrop Grumman’s LVC capabilities, immersive training technologies and experience with secure, cross-domain environments position it well to benefit from the long-term expansion of the military training market.
Other Defense Companies Benefiting From Training Demand
Other defense companies that are likely to benefit from the expanding military training and simulation market are discussed below:
Lockheed Martin Corporation LMT: Its Close Combat Tactical Trainer (CCTT) is the U.S. Army’s first and largest distributed interactive simulation system. The platform enables military units to train and validate tactics, doctrine, weapons systems, mission planning and mission rehearsals in a simulated environment.
RTX Corporation RTX: Its high-fidelity simulation and training solutions support military readiness by combining advanced avionics expertise with training technologies. Its integrated simulators can blend real and virtual environments, helping military personnel prepare for complex missions in a cost-effective manner.
The Zacks Rundown for NOC
Shares of NOC have surged 8.9% in the past month compared with the industry’s 9.7% growth.
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.77X compared with its industry’s average of 2.68X.
The Zacks Consensus Estimate for NOC’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
NOC stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Is Northrop Grumman Expanding Its Presence in Military Training?

Key Points
Space stocks rocketed in the run-up to SpaceX's June IPO -- then plummeted afterward.
Stock prices have stabilized and begun climbing higher this month.
Government contracts support the sector, but space stocks as a whole remain richly valued today.
Space stocks are in shambles.
"Led" (in a bad way) by Space Exploration Technologies (NASDAQ: SPCX), the space titan built by Elon Musk and IPOed on June 12, shares of space stocks of all stripes have taken a beating over the past couple of months.
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Take Rocket Lab (NASDAQ: RKLB) for example. The space company, often described as a mini-SpaceX, surged from below $5 in May 2024 to more than $140 in May 2026 -- a thirtyfold rise in just two years. Then it plunged more than 50% after the SpaceX IPO.
Or consider AST SpaceMobile (NASDAQ: ASTS), the satellite communications pioneer that proved the concept of cell phone-to-cell phone communications via satellite, with no towers in between. That one rose nearly twelvefold over the same two-year period -- then gave back 20% in the month following SpaceX's titanic IPO.
More targeted space plays such as Redwire Corporation (NYSE: RDW), which builds space infrastructure, and Intuitive Machines (NASDAQ: LUNR), focused on delivering cargo to the moon, gained fourfold in two years and nearly eightfold, respectively, before falling each falling roughly 70% in a month.
Can they bounce back?
SpaceX leads; others follow
Even SpaceX hasn't gone unscathed. After a first few frenzied days of trading that lifted Elon Musk's space empire past $211 a share, sellers arrived in force at SpaceX, driving the shares down nearly into the double digits.
The good news is that SpaceX appears to have found its footing again, closing at $140 Friday and once again above its IPO price. The better news is that many other space stocks are recovering, at least somewhat, alongside the leader.
The best news of all is that, with the U.S. government continuing to pour money into space exploration, there's reason to believe the momentum is sustainable.
NITE-STAR gazing
Case in point: Late last month, the U.S. Space Force announced a $981 million award to be shared among more than a dozen separate space stocks working on the "National Space Test and Training Complex Innovative Technology and Engineering Space Test and Range Capability Development" -- dubbed "NITE-STAR."
(Someone clearly worked overtime trying to make those words fit that acronym.)
Space Force named the following 15 space companies -- 13 of which are publicly traded -- as winners of NITE-STAR, clearing them to bid on future task orders under the umbrella contract, which will span 10 years:
It's not entirely clear what NITE-STAR will entail. The Space Force itself might not be 100% certain, describing the contract's goal vaguely as "advancement of the sophisticated systems and technologies required to keep [Space Force servicemen known as] Guardians ahead of the complexities of a contested space domain."
More importantly for investors, it's less than 100% certain anyone on the above list will book significant, needle-moving wins -- even on this nearly $1 billion contract.
What it means for space investors
Consider that $981 million, spread over 10 years, works out to just $98.1 million per year. And if contracts are evenly distributed, each of the 15 companies might, on average, expect to book as little as $6.5 million per year under the contract.
It goes without saying that $6.5 million won't move the needle for giant space companies such as Boeing, Lockheed, Northrop, or L3Harris. Smaller space-fry such as Firefly, Redwire, or York Space might notice the revenue influx more. But even at York, $6.5 million extra per year will only add about 1.5% to the company's $405 million-a-year revenue stream.
In short, big as this contract appears on the surface, it's not -- in and of itself -- going to be enough to turn things around and start a new bull market in space stocks. Many more contracts, and many much larger contracts, will be needed for that.
Meanwhile, a survey of 15 of the biggest space stocks that I follow shows an average price-to-sales ratio of 65.4. (Even throwing out triple-digit P/S outliers such as AST and Virgin Galactic (NYSE: SPCE) only brings the average P/S down to 19.8.) Valuations remain extreme in this sector.
Investors should be wary. Even after some pretty historic declines, space stocks as a whole aren't yet cheap enough to guarantee a bounce-back.
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Can Space Stocks Bounce Back? This $1 Billion Air Force Contract Might Help.

L3Harris Technologies, Inc. LHX is expanding its maritime capabilities with a new production facility in Providence, RI, supporting growing demand for undersea training and readiness. On Aug. 12, 2026, the company announced the opening of a 50,000-square-foot facility at ProvPort following a $6 million investment. The site will design, produce and deliver advanced undersea training systems for the U.S. Navy and allied forces.
The new facility is expected to strengthen L3Harris' ability to integrate and test undersea training ranges for U.S. and partner-nation fleets. Its location also provides access to maritime infrastructure and a skilled workforce, supporting the company's ability to execute specialized naval programs. The investment expands L3Harris' physical presence in Rhode Island, where it has operated since 1991 through its Ashaway facility, which provides undersea sensor systems and military sonar for the U.S. Navy.
The ProvPort expansion also broadens L3Harris' role across the undersea defense ecosystem. The facility will support local partnerships, port operations and specialized maritime services while creating additional capacity for undersea training activities. This complements the company's existing capabilities in undersea warfare, sensors and maritime solutions.
Growing emphasis on naval readiness and undersea capabilities could support demand for specialized training systems and related technologies. L3Harris' investment in dedicated production infrastructure positions the company to support U.S. and allied fleets while strengthening its presence in the maritime defense market.
Companies Expanding Undersea Defense Capabilities
The growing focus on naval readiness is encouraging defense companies to expand technologies supporting undersea operations. Companies like RTX Corporation RTX and Northrop Grumman Corporation NOC are also developing capabilities for U.S. and allied naval missions.
RTX provides sonar, sensing and other maritime technologies that support naval platforms and undersea operations.
Northrop Grumman develops undersea systems and technologies that facilitate naval missions, including capabilities for submarine and undersea warfare applications.
Earnings Estimates for LHX
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 9.04% and 15.81%, respectively.
LHX Stock Is Trading at a Discount
LHX is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 2.21X compared with the industry average of 2.69X.
LHX Stock Price Performance
Over the past year, LHX shares have rallied 7.3% compared with the industry’s 6.6% growth.
Image Source: Zacks Investment Research
LHX’s Zacks Rank
LHX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can L3Harris' New Rhode Island Facility Strengthen Undersea Growth?

Key Points
Despite a comparatively modest $4.3 billion market cap, Ondas has shown it can compete against defense industry giants.
Revenue rose by more than tenfold yearly in the latest quarter.
Ondas (NASDAQ: ONDS) surged over the last year as its military drone technology has captured investors' attention. Now, as wars in Ukraine and Iran drag on, the drone has become a critical weapon in the military arsenals of countries.
However, as investors learned the value of Ondas' pivot in this industry, they bid the stock higher by around 110% over the last year. Despite that gain, investors still have a good chance of outperforming the market with tech stocks.
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The state of Ondas
Once known as a wireless broadband company, Ondas pivoted to the commercial drone business and has gained more recent attention. Amid a massive increase in demand, Ondas' backlog rose from $68 million to $613 million in six months.
To that end, it made acquisitions to accelerate its go-to-market abilities. Additionally, it partnered with Palantir to scale its operating platform and integrate its ground, air, and stratospheric domains into a single AI-driven system.
At a $4.3 billion market cap, Ondas is a fraction of the size of industry giants like Northrop Grumman and RTX.
Still, Ondas announced $70 million in new orders in one month ending in late July. It won contracts from the U.S. Army and U.S. Air Force. Israel also selected it to build its next generation of military attack drones, indicating the company can compete with industry giants.
Looking forward, Markets and Markets forecasts a 26% compound annual growth rate (CAGR) for the military drone market through 2031, taking an estimated $35 billion market in 2026 to $109 billion by that year.
Ondas appears to be far outpacing that estimate, as analysts predict a revenue gain of more than tenfold in 2026 before growth slows to a forecast 87% gain the next year.
Although that may not turn the company profitable, it should ease worries about Ondas' 29 price-to-sales (P/S) ratio. Furthermore, amid the forecast revenue gains, Ondas now trades at a forward P/S ratio of 8. Given that increase and the surging demand for military drones, Ondas' stock appears to have plenty of room to rise.
It's not too late to buy Ondas stock
Despite recent gains, Ondas' stock has plenty of room to run.
Admittedly, a 29 P/S ratio may seem high, even for a growth stock in an emerging industry. Fortunately, its growth is so massive that the P/S ratio is on track to fall into the single digits quickly. Moreover, the company has won contracts from the U.S. and Israeli militaries, often over large, established competitors.
Ultimately, as drones change the face of warfare, Ondas looks increasingly well-positioned to play a critical role. Even at its current valuation, Ondas' growth should benefit its investors over time.
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Is It Too Late to Buy Ondas Stock?

Kratos Defense & Security Solutions, Inc. KTOS appears to be building a stronger foundation for sustained growth as increasing defense demand translates into new contract awards and a growing pipeline of potential opportunities. During the second quarter of 2026, the company generated $458.8 million in revenues, up 30.5% year over year, while organic revenues increased 19.1%. The strong performance was supported by broad-based growth across Kratos Government Solutions.
The most notable indicator of Kratos Defense’ future growth potential is its approximately $15 billion bid and proposal pipeline. The opportunity pipeline increased from $14.3 billion at the end of the first quarter, reflecting a growing number of potential programs that could eventually become contract awards. While the pipeline does not represent secured revenues, its expansion provides evidence of the significant addressable opportunity available to the company.
KTOS is targeting several markets where government spending is increasing, including hypersonics, propulsion, unmanned systems, missile systems, space and advanced defense technologies. The company believes these markets are positioned for continued investment as the U.S. military modernizes its capabilities and seeks systems that can be produced at greater scale and lower cost.
This creates an important potential growth cycle: new contract awards increase backlog, production ramp us convert backlog into revenues, and successful program execution can create opportunities for additional awards. Kratos Defense’s current 1.3-to-1 book-to-bill ratio suggests that this cycle is already developing.
If the company continues converting opportunities into awards while successfully expanding production capacity, its $15 billion pipeline could become an increasingly important source of revenue growth and potentially support a stronger earnings trajectory over the coming years.
Companies Gain From Growing Demand for Next-Generation Systems
The increasing U.S. focus on unmanned systems, hypersonics, propulsion, and other advanced defense technologies could also benefit defense companies with significant exposure to these markets, as discussed below:
Northrop Grumman NOC has significant exposure to autonomous systems, strategic programs, space and advanced defense technologies, while AeroVironment AVAV is positioned more directly toward unmanned aircraft and autonomous systems.
KTOS Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2026 earnings per share indicates an increase of 49.09% year over year.
KTOS Stock Trades at a Discount
In terms of valuation, KTOS’ forward 12-month price-to-sales (P/S) is 5.78X, a discount to the industry’s average of 8.68X.
KTOS Stock’s Price Performance
In the past three months, KTOS’ shares have risen 14.3% compared with the industry’s 0.7% growth.
Image Source: Zacks Investment Research
KTOS’ Zacks Rank
The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can Kratos Defense's $15B Opportunity Pipeline Sustain Growth Momentum?

RTX Corporation RTX continues to strengthen its position in the global missile market through its Raytheon business, supported by rising defense spending and growing demand for advanced precision weapons. The company offers a broad portfolio of missile and interceptor systems that address air-to-air, air defense, naval and long-range strike requirements.
RTX’s Raytheon business provides several combat-proven systems, including the Advanced Medium-Range Air-to-Air Missile (AMRAAM), AIM-9X, Tomahawk, Standard Missile and SM-6. These programs give RTX exposure to multiple areas of modern warfare, while its investments in next-generation technologies are helping expand its capabilities to address evolving threats.
Rising demand for missiles and interceptors is also encouraging RTX to expand production of several key systems. The company is increasing capacity for programs such as Tomahawk, AMRAAM and SM-6 as the United States and its allies seek to replenish inventories and strengthen their defense capabilities. This growing production base could provide greater visibility into future sales while helping RTX meet increasing customer requirements.
RTX’s missile business is benefiting from strong defense bookings, a record backlog and rising international demand. RTX ended the second quarter of 2026 with a record $289 billion backlog, up 22% year over year, including $119 billion in defense work. The company secured $43 billion in new awards, with nearly $20 billion at its Raytheon business, including more than $5 billion in GEM-T Patriot awards and $1.8 billion for AMRAAM. Recent SPY-6 and AIM-9X awards further highlight strong demand for RTX’s missile and defense systems. These developments position RTX well to benefit from continued growth in the global missile market.
Other Stocks to Keep on the Watchlist
Other aerospace and defense companies that are likely to benefit from the growing global demand for missile and defense systems are discussed below:
Lockheed Martin Corporation LMT: The company has a broad portfolio of missile and missile-defense programs, including PAC-3, THAAD, JASSM, Javelin and other advanced weapons. Its presence across air defense, precision strike and hypersonic technologies positions it well to benefit from rising defense investments.
Northrop Grumman Corporation NOC: The company develops advanced missile systems, propulsion technologies, sensors and command-and-control solutions for modern defense missions. Its capabilities in long-range strike, missile defense and advanced munitions provide exposure to the growing demand for next-generation weapons.
The Zacks Rundown for RTX
Shares of RTX have surged 43% in the past year compared with the industry’s 5.2% growth.
The company’s shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 29.19X compared with its industry’s average of 34.03X.
The Zacks Consensus Estimate for RTX’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
RTX stock currently carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
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Is RTX Strengthening Its Position in the Global Missile Market?

Lockheed Martin LMT is strengthening its position in the rapidly evolving space-defense market, with its Space business benefiting from increased demand for strategic systems and missile-defense technologies. During the second quarter of 2026, Space sales increased 6% year over year to $3.5 billion, with the majority of the increase coming from higher volumes on Fleet Ballistic Missile (“FBM”) and Next Generation Interceptor (“NGI”) programs.
The NGI program represents one of the most important opportunities within Lockheed Martin’s space-defense portfolio. NGI is being developed for the U.S. Missile Defense Agency as part of the country’s layered homeland missile-defense architecture. Lockheed Martin recently opened an 88,000-square-foot purpose-built facility in Alabama dedicated to NGI production, expanding the company’s manufacturing capacity for the program.
The investment is significant because increasing demand for advanced missile-defense systems will require not only sophisticated technology but also greater production capacity. Lockheed Martin has been investing heavily across its manufacturing network, with nearly $8-$9 billion of planned investment through 2030.
In May 2026, the company was selected by the U.S. Space Force’s Space Systems Command to develop capabilities supporting the Space-Based Interceptor program. The effort is designed to create an early engagement layer within a broader integrated missile-defense architecture, leveraging Lockheed Martin’s experience with NGI, THAAD, PAC-3 and missile-warning technologies.
The combination of FBM and NGI also illustrates the broader opportunity for Lockheed Martin. As governments place greater emphasis on homeland defense and the ability to counter increasingly sophisticated missile threats, demand for these capabilities could remain strong over the long term.
Companies Gain From Growing Space & Missile-Defense Demand
The growing emphasis on space-based defense, strategic systems and missile interception could benefit other defense companies with exposure to these markets.
Northrop Grumman’s NOC portfolio includes systems supporting national security, missile warning and space-based missions, giving the company exposure to rising government investment in next-generation defense capabilities.
RTX Corporation RTX could also benefit from sustained demand for missile-defense systems, advanced sensors and precision weapons. Its Raytheon business provides a broad portfolio of air and missile-defense solutions, while increasing investment in layered defense architectures could support demand for interceptors, radars and other mission-critical technologies.
LMT Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year improvement of 31.31% and 8.35%, respectively.
LMT Stock Trades at a Discount
In terms of valuation, LMT’s forward 12-month price-to-sales (P/S) is 1.69X, a discount to the industry’s average of 2.66X.
Image Source: Zacks Investment Research
LMT Stock’s Price Performance
In the past three months, the company’s shares have risen 16.7% compared with the industry’s 11.2% growth.
Image Source: Zacks Investment Research
LMT’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can Lockheed Martin's Space Business Become Its Next Growth Driver?

Embraer S.A. EMBJ reported second-quarter 2026 earnings of $1.19 per American Depository Share (“ADS”), beating the Zacks Consensus Estimate of 61 cents by 95.1%. The bottom line surged 177.4% from 43 cents per ADS a year ago.
The company reported GAAP earnings of 30 cents per ADS compared with 11 cents in the second quarter of 2025.
Embraer’s Total Revenues
Revenues of $2.24 billion increased 22.9% year over year and topped the Zacks Consensus Estimate of $2.05 billion by 8.9%. The revenue increase reflected higher activity across Executive Aviation, Defense & Security, Commercial Aviation and Services & Support.
Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
Embraer-Empresa Brasileira de Aeronautica price-consensus-eps-surprise-chart | Embraer-Empresa Brasileira de Aeronautica Quote
Embraer's Deliveries and Backlog Climb
Embraer delivered 65 aircraft in the quarter, up 6.6% from 61 a year ago. Commercial Aviation deliveries rose to 20 aircraft from 19, while Executive Aviation deliveries increased to 45 from 38.
The company-wide firm order backlog reached a record $34.5 billion, up 16% year over year. Commercial Aviation backlog rose 15% to $15.1 billion, Executive Aviation increased 5% to $7.8 billion, Defense & Security climbed 42% to $6.1 billion, and Services & Support advanced 12% to $5.5 billion.
EMBJ’s Segmental Details
Executive Aviation: This segment’s revenues climbed 32% to $725 million, supported by higher volumes and product mix. Its adjusted EBIT margin expanded to 23.4% from 14.5%.
Defense & Security: This segment’s revenues rose 38% to $304 million on stronger KC-390 revenue recognition tied to customer mix and product stage. Its adjusted EBIT margin improved to 11.9% from 9.2%.
Commercial Aviation: Revenues increased 8% year over year to $625 million, mainly on higher volumes. Its adjusted EBIT margin declined to 2.9% from 4.3%.
Services & Support: This segment’s revenues advanced 24% to $565 million, while its adjusted EBIT margin increased to 18.7% from 15.5%.
Others: This segment includes ERJ’s Agricultural Aviation, cyber division Tempest, the landing gear division and other businesses. Revenues for this segment declined 6% to $15 million, primarily reflecting lower deliveries in agricultural aviation during the quarter.
Operational Highlights of EMBJ
Embraer’s operating income amounted to $285.8 million compared with $179.5 million in the second quarter of 2025.
The company posted adjusted EBITDA of $355.6 million compared with $245.5 million a year ago.
Financial Update of EMBJ
As of June 30, 2026, EMBJ’s cash and cash equivalents amounted to $1.39 billion compared with $1.95 billion as of Dec. 31, 2025.
Its adjusted free cash flow (without Eve) for the second quarter of 2026 totaled $401 million against the adjusted free cash outflow of $161.6 million in the prior-year period.
The net cash provided by operating activities during the first six months of 2026 amounted to $204.4 million against the net cash outflow from operating activities of $134.1 million during the first six months of 2025.
Embraer’s 2026 Guidance
Embraer continues to expect 80-85 Commercial Aviation deliveries and 160-170 Executive Aviation deliveries in 2026.
The company also maintained its revenue outlook of $8.2-$8.5 billion. The Zacks Consensus Estimate for revenues is pegged at $8.52 billion, which is higher than the company’s guided range.
EMBJ raised its adjusted EBIT margin guidance to 10-10.6% from 8.7-9.3%. It also lifted its adjusted free cash flow outlook excluding Eve to at least $400 million from at least $200 million.
EMBJ’s Zacks Rank
Embraer currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.
Revenues rose 14.5% year over year to $24.71 billion and outpaced the consensus mark of $22.83 billion by 8.2%.
Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s total sales of $10.88 billion in the second quarter outperformed the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter.
The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion.
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Embraer's Second-Quarter Earnings and Revenues Surpass Estimates

Kratos Defense & Security Solutions, Inc. KTOS reported second-quarter 2026 adjusted earnings of 21 cents per share, which beat the Zacks Consensus Estimate of 13 cents by 61.5%. The bottom line also increased 90.9% from the year-ago quarter’s 11 cents.
Kratos Defense reported GAAP earnings of 2 cents per share, which came in line with the year-ago quarter.
KTOS’ Revenue Growth Accelerates
Revenues of $458.8 million beat the consensus estimate of $412 million by 11.4% and increased 30.5% year over year. Kratos Government Solutions led the growth, while total organic revenues advanced 19.1%.
Product sales climbed 33.5% year over year to $289.1 million. Service revenues increased 25.8% to $169.7 million.
Kratos Defense & Security Solutions, Inc. Price, Consensus and EPS Surprise
Kratos Defense & Security Solutions, Inc. price-consensus-eps-surprise-chart | Kratos Defense & Security Solutions, Inc. Quote
Operational Update of Kratos Defense
Selling, general and administrative expenses jumped 35.5% to $73.3 million. Research and development expenses rose 33.3% to $13.6 million.
Amortization of intangible assets increased to $10.1 million from $2.8 million, while depreciation rose to $3.9 million from $3 million.
Kratos recorded an operating loss of $1.6 million against the operating income of $3.7 million a year earlier.
KTOS’ Segmental Performance
Unmanned Systems: Revenues from this segment totaled $79.1 million compared with $73.2 million in the year-ago quarter. The increase was primarily driven by Valkyrie-related activity.
Kratos Government Solutions: Revenues from this segment amounted to $379.7 million compared with $278.3 million in the year-ago quarter. This rise was due to organic revenue growth across its Defense and Rocket Support business, Turbine Technologies and Microwave Products and Space, Training and Cyber businesses, with organic revenue growth rates of 50.2%, 43.3%, 29.5% and 8.7%, respectively, year over year.
Financial Details of KTOS
As of June 28, 2026, cash and cash equivalents totaled $1.44 billion, up from $0.56 billion as of Dec. 28, 2025.
The company reported other current liabilities of $19.9 million as of June 28, 2026 compared with $9 million recorded as of Dec. 28, 2025.
The net cash used in operating activities amounted to $38.4 million during the first six months of 2026 compared with $40.9 million in the same period of 2025.
KTOS’ Backlog Supports Demand Visibility
Consolidated bookings totaled $492.2 million in the second quarter, resulting in a book-to-bill ratio of 1.1. The last-12-month book-to-bill ratio was 1.3, with bookings of $1.99 billion.
Backlog increased to $2.08 billion as of June 28, 2026 from $2.05 billion at the end of the first quarter. Funded backlog was $1.57 billion, while unfunded backlog totaled $512.7 million. The bid and proposal pipeline expanded to $15 billion from $14.3 billion.
Kratos Defense’s Guidance
KTOS projects second-quarter 2026 revenues to be in the range of $460-$480 million. The Zacks Consensus Estimate for revenues is pegged at $460.3 million, which is at the lower end of the company’s guided range.
Kratos raised its full-year 2026 revenue guidance to $1.75-$1.81 billion compared with the previous range of $1.7-$1.76 billion. The Zacks Consensus Estimate for revenues is pegged at $1.75 billion, which is at the lower end of the company’s guided range.
Kratos Defense now expects operating cash flows to be in the range of $30-$50 million and free cash flow to be in the band of $85-$105 million for 2026.
KTOS’ Zacks Rank
Kratos Defense currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.
Revenues rose 14.5% year over year to $24.71 billion and outpaced the consensus mark of $22.83 billion by 8.2%.
Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s total sales of $10.88 billion in the second quarter outperformed the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter.
The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion.
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Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	NOC	Industry	NOC	Industry	Volume, $
Yesterday 576.2 - 594.5	1.54	19.20	6.47	0.86	293.59M
Week 569.2 - 594.5	2.96	27.25	1.84	3.56	1.18B
Month 479.0 - 594.5	11.98	22.13	3.99	13.21	6.82B
3 Months 479.0 - 594.5	6.34	17.88	8.64	19.80	21.44B
6 Months 479.0 - 774.0	-19.15	20.05	17.19	24.94	42.31B
Year 479.0 - 774.0	0.68	52.73	26.44	45.29	78.47B
3 years 414.6 - 774.0	37.34	43.01	43.27	68.76	167.74B
5 years 344.9 - 774.0	62.36	65.89	57.33	92.09	263.37B
All time 19.3 - 556.3	902.54	155.64	—	—	211.68B

Northrop Grumman Corporation

Price and volatility history

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