Northrop Grumman Corporation NOC is expanding its presence in international defense markets as U.S. allies increase spending on advanced military technologies. Foreign demand is becoming an increasingly important growth driver for the company, supported by rising investments in air and missile defense, surveillance and other advanced defense capabilities.
Northrop Grumman's international sales reached $1.54 billion in the second quarter of 2026, representing 14% of total sales, compared with $1.40 billion and 13% in the year-ago quarter. Management is targeting $10 billion in annual international sales by 2031, which would roughly double the company's prior level.
The company is also witnessing growing demand for its key defense platforms worldwide. Recent developments include Kuwait's authorization for six Integrated Battle Command System (IBCS) systems, NATO's commitment involving the Triton surveillance platform and Northrop Grumman's selection to establish an in-country solid rocket motor manufacturing facility in Australia. The company's IBCS is already operational, while demand for advanced defense systems remains strong across Europe and the Middle East.
Rising international defense spending should create additional opportunities for Northrop Grumman. The company's growing overseas presence can expand its addressable market beyond U.S. procurement cycles and support a more diversified order base over the long term. With a broad portfolio spanning surveillance, air and missile defense, strategic deterrence and advanced aerospace technologies, Northrop Grumman appears well-positioned to capitalize on expanding global defense demand.
Defense Stocks to Keep on the Radar
Other defense companies expanding their international presence and benefiting from rising global demand are discussed below:
RTX Corporation RTX: RTX is benefiting from strong international demand for air and missile defense systems, precision weapons and advanced sensors. Raytheon secured more than $10 billion of international awards in the first half of 2026, including more than $7 billion from European customers.
Lockheed Martin Corporation LMT: International customers represented 28% of Lockheed Martin’s 2025 sales. The company is expanding its global presence through co-production and regional sustainment initiatives, including an agreement with Rheinmetall to pursue ATACMS production in Europe.
The Zacks Rundown for NOC
Shares of NOC have lost 1% in the past month compared with the industry’s 4% decline.
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The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.68X compared with its industry’s average of 2.47X.
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The Zacks Consensus Estimate for NOC’s 2026 and 2027 earnings has moved north over the past 60 days.
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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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This article originally published on Zacks Investment Research (zacks.com).