Is Northrop Grumman Expanding Its Presence in the SEWIP Market?

Northrop Grumman NOC continues to strengthen its position in the Surface Electronic Warfare Improvement Program (SEWIP) market through its advanced electronic warfare (EW) technologies and long-standing partnership with the U.S. Navy. The company's Mission Systems business develops next-generation EW solutions that help naval forces detect, identify and counter increasingly sophisticated threats, improving survivability and mission effectiveness in contested maritime environments.

A key example is Northrop Grumman's latest contract from the U.S. Navy. In June 2026, the company secured a $312.3 million modification contract to exercise an option for the production of SEWIP Block 3 Hemisphere and Quadrant systems. Awarded by the Naval Sea Systems Command, the contract supports the continued production of advanced electronic warfare systems for U.S. Navy ships and is scheduled for completion by August 2029.

SEWIP Block 3 represents the latest evolution of the Navy's AN/SLQ-32 electronic warfare system. It provides advanced electronic attack capabilities that enable warships to detect, identify, analyze and counter hostile radar and anti-ship missile threats. By integrating offensive and defensive electronic warfare functions, the system enhances fleet survivability while allowing Navy vessels to respond more effectively to increasingly complex electromagnetic threats.

With naval forces worldwide investing heavily in electronic warfare and electromagnetic spectrum dominance, demand for advanced systems such as SEWIP is expected to remain strong. Northrop Grumman's continued investments in next-generation electronic warfare technologies, combined with its proven expertise in delivering mission-critical naval defense systems, position it well to benefit from long-term defense modernization initiatives and the growing focus on maritime electronic warfare capabilities.

Other Stocks to Keep on the Watchlist

Other aerospace and defense companies expanding their electronic warfare capabilities are discussed below:

RTX Corporation RTX: The company is a leading provider of advanced electronic warfare systems. Its Next Generation Jammer equips the EA-18G Growler with advanced electronic attack capabilities, enabling it to disrupt and degrade multiple enemy radar systems simultaneously.

General Dynamics GD: The company offers advanced electronic warfare solutions through its defense portfolio. Its Tactical Electronic Warfare System enables military personnel to detect, identify and locate enemy signals while disrupting hostile communications and improving battlefield situational awareness.

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The Zacks Rundown for NOC

Shares of NOC have lost 1.5% in the past year compared with the industry's 6% growth.Zacks Investment Research

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The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.55X compared with its industry's average of 2.62X.Zacks Investment Research

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The Zacks Consensus Estimate for NOC's 2026 and 2027 earnings has moved north over the past 60 days.Zacks Investment Research

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NOC stock currently carries a Zacks Rank #2 (Buy).

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This article originally published on Zacks Investment Research (zacks.com).

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