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Arrowstreet Capital Limited Partnership boosted its holdings in shares of Lockheed Martin Corporation (NYSE: LMT) by 264.4% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 275,178 shares of the aerospace company's stock after buying an additional 199,667

Lockheed Martin (LMT +2.46%) had a terrific Q2, and reported powerful profits and sales in its Q2 earnings report yesterday -- topping off the report with raised guidance.

Wall Street is applauding, with no fewer than five separate analysts raising price targets on Lockheed Martin stock today. Shares of the defense giant are up for a second day running in response, gaining 2.1% through 2:05 p.m. ET, and topping $580 a share.

Image source: Getty Images.

Lockheed Martin Q2 earnings Lockheed grew sales by 11% in Q2 and profits by 444%. Free cash flow flipped from negative $150 million to positive $2.9 billion.

Commenting on the results, Swiss bank UBS highlights "strong demand" for Lockheed Martin's products, paired with increasing production capacity geared to meet that demand -- and grow sales and profits.

As you'd expect in an environment characterized by two "hot" wars going on simultaneously, sales of Lockheed's in-demand Patriot missiles are helping to drive Missiles & Fire Control results. But Lockheed's looking healthy in other areas as well. Each of Lockheed's four main divisions showed sales growth in Q2, and all four earned profits.

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What's next for Lockheed Martin stock UBS thinks Lockheed's in the early innings of a growth spurt, and the numbers bear this out. Lockheed had a 3.2x book-to-bill ratio in Q2 -- meaning it "booked" 3.2 times more orders than it "billed" by delivering on existing orders. This implies strong sales growth in Lockheed's future, as newly booked orders ship, are billed, and become revenue.

Despite this evidence that a turnaround is afoot, though, UBS hesitates to recommend buying Lockheed -- worried that midterm U.S. Congressional elections could endanger future defense budgets.

I admit that's a risk. But with Lockheed stock trading for a cheap 16.5x free cash flow today, it's a risk worth taking.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.

Key Takeaways Lockheed Martin reported a record $230 billion backlog after adding $65 billion of orders in Q2.LMT saw Missiles and Fire Control sales rise 19% as PAC-3, THAAD and Precision Strike ramps continued.Lockheed Martin raised 2026 sales guidance to $79.75B-$81.75B with growth expected across segments. Lockheed Martin Corporation (LMT - Free Report) used its second-quarter 2026 earnings call to highlight a shift toward faster defense technology development, expanded production capacity and long-term demand visibility. Management emphasized that investments made ahead of orders are positioning the company for a higher growth trajectory.

The discussion focused on a record backlog, new multiyear defense agreements, manufacturing expansion and management’s confidence in raising 2026 guidance.

LMT Expands Backlog and Growth VisibilityLockheed Martin reported a record backlog of $230 billion after adding $65 billion of orders during the quarter. CFO Evan Scott said the company’s second-quarter book-to-bill ratio reached 3.2:1, providing visibility into future sales growth.

Management highlighted the $35 billion THAAD interceptor contract as a major step in converting framework agreements into production programs. The company also secured additional awards across missile defense, radar and space programs.

LMT delivered second-quarter EPS of $7.94, beating the Zacks Consensus Estimate of $7.22. Quarterly revenues of $20.06 billion also surpassed the consensus mark of $19.43 billion. Free cash flow reached $2.9 billion. The company raised its full-year outlook, reflecting stronger expected execution across its portfolio.

Lockheed Martin Pushes Munitions CapacityLockheed Martin said accelerating munitions production remains a central priority as demand increases. Management discussed plans to expand capacity while improving efficiency through automation, partnerships and new manufacturing approaches.

Missiles and Fire Control led quarterly growth, with sales rising 19% year over year due to production ramp-up in PAC-3, THAAD and Precision Strike Missile programs. The segment posted a 14.5% operating margin.

The company expects multiyear agreements to support investment decisions by providing greater production visibility. Executives said these structures are designed to encourage cost reductions while supporting faster delivery schedules.

LMT Advances Defense Technology StrategyLMT CEO James Taiclet emphasized a move toward a defense technology model focused on anticipating customer needs rather than waiting for formal program requests. He described investments in systems developed ahead of contracted demand.

Management highlighted the Sanctum counter-drone system, which moved from concept to live-fire testing in 45 days by integrating existing Lockheed Martin technologies and partner capabilities.

The company also discussed artificial intelligence applications in manufacturing, including predictive maintenance, automated quality checks and improved production analytics.

Lockheed Martin Details Segment MomentumLockheed Martin expects growth across all four business segments in the second half of 2026. Management raised full-year sales guidance to $79.75-$81.75 billion and free cash flow guidance to $7-$7.2 billion.

Aeronautics growth is being supported by F-35 production and sustainment activity. The segment reported second-quarter sales of $8.1 billion, up 9% year over year.

Space sales increased 6% in the quarter, driven by strategic and missile defense programs. Management also cited Next-Generation Interceptor and Fleet Ballistic Missile programs as key contributors.

LMT Addresses Investor QuestionsLMT executives faced questions about whether recent investments ahead of contracts create additional risk. Taiclet said the company is pursuing disciplined investments supported by customer alignment and long-term agreements.

A Deutsche Bank analyst asked about scaling newer defense technologies. Management explained that the company is investing in manufacturing and design capabilities before orders arrive to improve speed and responsiveness.

A Morgan Stanley analyst asked about the opportunity from rapid-development systems such as counter-drone platforms. Management said these efforts are viewed as incremental opportunities beyond traditional program forecasts.

Lockheed Martin Focuses on ExecutionLockheed Martin closed the call by emphasizing operational execution, supply-chain expansion and partnerships as key priorities. Management pointed to domestic investments and international collaborations as tools to strengthen production capacity.

The company continues to balance growth investments with shareholder returns. During the quarter, Lockheed Martin returned $796 million to shareholders through dividends while funding production expansion and research initiatives.

Executives maintained that converting demand into sustained production growth will depend on execution, contract finalization and continued manufacturing improvements.

LMT’s Zacks Rank and Style ScoresLMT carries a Zacks Rank #3 (Hold). The Zacks Rank reflects the company’s earnings estimate revision trends and can change after analysts update expectations following quarterly results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

LMT has a Value Score of B, Growth Score of D, Momentum Score of C and VGM Score of C. Zacks Style Scores are designed to complement the Zacks Rank by evaluating value, growth and momentum characteristics, with higher grades indicating stronger characteristics within each style category.

Posted by Defense World Staff on Jul 24th, 2026

Bank of Nova Scotia increased its position in Lockheed Martin Corporation (NYSE:LMT – Free Report) by 84.9% in the first quarter, according to its most recent 13F filing with the SEC. The firm owned 176,707 shares of the aerospace company’s stock after purchasing an additional 81,115 shares during the period. Bank of Nova Scotia owned about 0.08% of Lockheed Martin worth $106,800,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Cerro Pacific Wealth Advisors LLC grew its holdings in shares of Lockheed Martin by 1.2% during the fourth quarter. Cerro Pacific Wealth Advisors LLC now owns 1,376 shares of the aerospace company’s stock valued at $665,000 after buying an additional 16 shares in the last quarter. Garner Asset Management Corp lifted its stake in Lockheed Martin by 0.9% in the 4th quarter. Garner Asset Management Corp now owns 1,735 shares of the aerospace company’s stock worth $839,000 after acquiring an additional 16 shares in the last quarter. Davis R M Inc. boosted its position in Lockheed Martin by 1.3% during the 4th quarter. Davis R M Inc. now owns 1,264 shares of the aerospace company’s stock worth $612,000 after acquiring an additional 16 shares during the period. Broadway Wealth Solutions Inc. boosted its position in Lockheed Martin by 3.6% during the 4th quarter. Broadway Wealth Solutions Inc. now owns 484 shares of the aerospace company’s stock worth $234,000 after acquiring an additional 17 shares during the period. Finally, Aspire Growth Partners LLC grew its stake in Lockheed Martin by 0.7% during the 4th quarter. Aspire Growth Partners LLC now owns 2,515 shares of the aerospace company’s stock valued at $1,217,000 after acquiring an additional 17 shares in the last quarter. 74.19% of the stock is currently owned by hedge funds and other institutional investors.

Lockheed Martin Stock Up 10.5% LMT stock opened at $568.62 on Friday. The stock has a market capitalization of $131.10 billion, a price-to-earnings ratio of 27.54, a price-to-earnings-growth ratio of 0.92 and a beta of 0.11. The company has a 50-day moving average of $522.45 and a two-hundred day moving average of $573.14. Lockheed Martin Corporation has a 52-week low of $412.55 and a 52-week high of $692.00. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.14 and a quick ratio of 0.94.

Lockheed Martin (NYSE:LMT – Get Free Report) last posted its quarterly earnings data on Thursday, July 23rd. The aerospace company reported $7.94 EPS for the quarter, topping analysts’ consensus estimates of $7.22 by $0.72. Lockheed Martin had a return on equity of 101.64% and a net margin of 6.38%.The business had revenue of $20.06 billion for the quarter, compared to analyst estimates of $19.34 billion. During the same period in the previous year, the company posted $1.46 earnings per share. The firm’s revenue for the quarter was up 10.5% on a year-over-year basis. Lockheed Martin has set its FY 2026 guidance at 29.950-30.650 EPS. As a group, equities research analysts anticipate that Lockheed Martin Corporation will post 29.92 EPS for the current year.

Lockheed Martin Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Tuesday, September 1st will be given a $3.45 dividend. This represents a $13.80 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Tuesday, September 1st. Lockheed Martin’s payout ratio is currently 66.83%.

Analyst Upgrades and Downgrades A number of equities analysts have recently weighed in on the company. Wall Street Zen downgraded Lockheed Martin from a “buy” rating to a “hold” rating in a report on Saturday, April 25th. Bank of America decreased their price target on shares of Lockheed Martin from $660.00 to $600.00 and set a “neutral” rating for the company in a report on Friday, April 24th. BNP Paribas Exane dropped their price objective on shares of Lockheed Martin from $770.00 to $680.00 and set an “outperform” rating on the stock in a research note on Friday, April 24th. Jefferies Financial Group set a $575.00 target price on shares of Lockheed Martin in a research report on Thursday, June 25th. Finally, Morgan Stanley cut their target price on shares of Lockheed Martin from $675.00 to $653.00 and set an “equal weight” rating for the company in a research report on Friday, April 24th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $615.78.

View Our Latest Stock Analysis on Lockheed Martin

Key Headlines Impacting Lockheed Martin Here are the key news stories impacting Lockheed Martin this week:

Positive Sentiment: LMT beat Q2 estimates with EPS of $7.94 and revenue of $20.06 billion, both above Wall Street expectations, while sales rose 10.5% year over year. Lockheed Martin Reports Second Quarter 2026 Financial Results Positive Sentiment: The company raised 2026 guidance, now expecting EPS of $29.95 to $30.65 and revenue of $79.8 billion to $81.8 billion, signaling stronger demand and better execution ahead. Lockheed Martin lifts 2026 forecasts as Pentagon seeks to restock weapons Positive Sentiment: Management highlighted a record $230 billion backlog, helped by a large THAAD interceptor contract and continued expansion in munitions production, reinforcing visibility into future revenue. Lockheed Martin’s stock skyrockets as push to build more missiles faster pays off Positive Sentiment: Rising global defense spending and Pentagon efforts to restock weapons stockpiles are boosting demand for LMT’s missile and air-defense systems. Lockheed Martin, RTX lift 2026 forecasts as Pentagon looks to restock weapons Neutral Sentiment: The stock is also benefiting from broad defense-sector strength, even as the wider market falls on tech-earnings and inflation worries tied to higher oil prices. LMT Stock Soars as Lockheed Martin Raises Annual Forecast About Lockheed Martin (Free Report)

Lockheed Martin Corporation (NYSE: LMT) is a global aerospace and defense company that designs, develops and manufactures advanced technology systems for government and commercial customers. Formed through the 1995 merger of Lockheed Corporation and Martin Marietta, the company is headquartered in Bethesda, Maryland, and focuses on providing integrated solutions across air, space, land and sea domains. Its primary customers include the U.S. Department of Defense, NASA and allied governments around the world.

Lockheed Martin’s product and service portfolio spans military aircraft, missile and fire-control systems, missile defense, space systems and satellite technologies, sensors and precision weapons.

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Lockheed Martin delivered accelerating Q2 sales growth of 11% YoY, signaling effective capacity expansion and robust demand. The company raised full-year guidance, projecting 8% sales growth and maintaining a solid segment operating margin around 10.7%. Backlog reached $230 billion with a 3.2x book-to-bill ratio, underscoring sustained demand and future revenue visibility.

23.7.2026 22:08

Index Dow Jones -0,97 % na 51711,65 b. S&P 500 -1,21 % na 7408,3 b. Nasdaq Composite -2,15 % na 25137,69 b.

Obchodní den končí v USA v červeném. Široký index S&P 500 odepisuje 1,2 % pod tlakem poklesů v sektoru komunikačních služeb a zbytné spotřeby. V komunikační službách se negativní sentiment propsal do akcií Alphabet, které po kvartálních výsledcích odepisují 6,89 %. Rudá barva se prolila i do telekomunikačních služeb, kde reportoval T-Mobile US (- 10,75 %). Ten se chce v následujícím kvartálu zaměřit na vyšší výnosy z každého zákazníka a méně řešit přírůstky nových klientů. Vedení očekává slabší přírůstky a společnost se snaží převádět zákazníky na dražší tarify, což by mohlo vést k dočasnému úbytku zákazníků. Za minulý kvartál firma meziročně zvýšila čistý zisk o 5 % a díky silnému cash flow byl zvýšen celoroční výhled na USD 18,4 -18,8 mld. Zveřejněný zisk na akcii USD 2,99 překonal odhady trhu.

Nedařilo se ani aerolinkám. American Airlines Group (- 8,35 %) klesá kvůli slabšímu výhledu. Společnosti v uplynulém kvartálu významně rostla cena leteckého paliva. I když se zvýšené náklady povedlo částečně přesunout na zákazníka, tak trh negativně reaguje na zvýšený tlak na marže do budoucna. Management očekává v dalším kvartálu ztrátu až do výše USD 0,1 na akcii. V reportu za minulý kvartál dosáhl zisk na akcii na USD 0,15.

Kladně končí sektor průmyslu. GE Vernova posílila o 4,69 % a o 10,54 % posílil Lockheed Martin.

Z indexu Dow Jones posílila třetina titulů na čele s Honeywell Technologies (5,7 %).

Komoditní trhy se soustředí na černé zlato. Futures na ropu Brent se nyní obchodují těsně pod hranicí USD 100 a WTI při růstu o 5,3 % překonává cenovku USD 91,5.

Index S&P 500 -1,21 % na 7408,3 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Průmysl +1,8 % Komunikační služby -5,2 % Zdravotní péče +1,3 % Zbytná spotřeba -5,1 % Energie +0,6 % Nezbytná spotřeba -1,1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Lockheed Martin Corp (LMT) +11 % Tesla (TSLA) -15 % Allegion (ALLE) +10 % T-Mobile US (TMUS) -11 % United Rentals (URI) +10 % Rollins (ROL) -9,3 % Thermo Fisher Scientific (TMO) +8,7 % Dover Corp (DOV) -7,8 % Quest Diagnostics (DGX) +8,6 % Alphabet (GOOGL) -7,1 %
Marek Kameništiak
Fio banka, a.s.
Prohlášení

Defense prime contractors are ripping higher Thursday on beat-and-raise quarters that underscore resilient demand and record backlogs even as the broader market slides.

iShares U.S. Aerospace & iShares U.S. Aerospace & Defense ETF (BATS:ITA) also rose and both Lockheed and RTX stocks remain up more than 30% over the past year.

Lockheed Martin‘s Record OrdersTHAAD Contract Boosts Long-Term ProspectsImage: Shutterstock

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Item 1 of 3 U.S. Secretary of the Army Christine Wormuth speaks near a Terminal High Altitude Area Defense (THAAD) missile and the Pac-3 Missile Segment Enhancement during the Association of the United States Army annual meeting and exposition at the Walter E. Washington Convention Center in Washington, U.S., October 14, 2024. REUTERS/Nathan Howard/File Photo

[1/3]U.S. Secretary of the Army Christine Wormuth speaks near a Terminal High Altitude Area Defense (THAAD) missile and the Pac-3 Missile Segment Enhancement during the Association of the United States... Purchase Licensing Rights, opens new tab Read more

WASHINGTON, July 23 (Reuters) - The world's two biggest defense contractors, Lockheed Martin and RTX, said on Thursday they expect strong profits going forward because a wave of global conflicts from Iran to Ukraine has depleted Pentagon stockpiles that will need replenishing.

Investors cheered ​the news, pushing shares of Lockheed (LMT.N), opens new tab up 10.6% and boosting RTX (RTX.N), opens new tab 7.7%.

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President Donald Trump has been urging defense contractors to ‌increase production as the U.S.-Israeli war on Iran and a prolonged Russia-Ukraine conflict drain the Pentagon's inventory.

Trump has also proposed a record $1.5 trillion military budget for fiscal 2027. The U.S. House of Representatives this week passed its version of a massive defense policy bill that would authorize an unprecedented $1.15 trillion in spending for the military.

Demand is expected ​to remain strong. The U.S. has used more than 50,000 rockets, missiles and rocket-propelled munitions since the start of the Russia-Ukraine ​conflict in 2022 and throughout the U.S. attack on Iran, which began on February 28, according to Pentagon ⁠data.

Lockheed's missiles and fire control revenue rose nearly 20% to $4.1 billion, driven by a production ramp-up of its PAC-3 and precision strike missiles, ​both of which have been used in the war on Iran in the last few months. The segment was also helped by higher production ​of its THAAD missile interceptors, after the company signed a $35 billion contract with the U.S. government in June to quadruple output.

"The government is giving us a lot more flexibility than they traditionally would have done... so that we can be faster," Lockheed Martin's CEO Jim Taiclet said on the post-earnings call.

"That's what I hear ​from the deputy secretary every time we get together and beyond: faster, faster, faster," he added, referring to U.S. Deputy Secretary of Defense Steve ​Feinberg.

Lockheed's total backlog — orders yet to be produced — grew to $230.4 billion, up 38.3% from $166.5 billion last year.

"We're in active dialogue looking at other potential opportunities. We ‌do see ⁠a real opportunity here for more partnerships to scale production faster, particularly in Europe," Lockheed CFO Evan Scott said on a call with Reuters.

The company now expects 2026 revenue between $79.75 billion and $81.75 billion, up from a prior range of $77.5 billion to $80 billion, and above analyst expectations of $79.14 billion, according to LSEG data.

At RTX, backlog rose 22% from a year earlier to $289 billion, including $170 billion in commercial aerospace orders and $119 billion in defense. ​Demand for aircraft maintenance, repair and ​overhaul services has remained strong ⁠as supply-chain snags and delayed deliveries have forced airlines to keep older, more expensive fleets flying longer.

Sales at Raytheon, RTX's weapons business, rose 18% to $8.27 billion, helped by demand for Patriot, Standard and AMRAAM missile systems.

"About ​half of (Raytheon's) bookings in the first half of the year, $10 billion, came from international customers. Of that $10 ​billion, $7 billion came ⁠from European customers," RTX Chief Financial Officer Neil Mitchill told Reuters.

RTX now expects 2026 adjusted sales of $95 billion to $96 billion, up from $92.5 billion to $93.5 billion, above analyst estimates of $94.08 billion. It raised its adjusted profit forecast to $7.10-$7.25 per share, from $6.70-$6.90 previously.

About two-thirds of the increase in RTX's annual profit guidance ⁠comes from ​Raytheon, and another roughly 25% from Collins, the airplane components business, said Seth Seifman, analyst ​at JPMorgan.

RTX CEO Chris Calio said on the post-earnings call the company saw potential opportunities in the Middle East amid current developments, noting that RTX had strong customer relationships in ​both the Middle East and Europe.

Both companies topped Wall Street's second-quarter estimates.

Reporting by Mike Stone in Washington; editing by Chris Sanders and Nia Williams

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Mike Stone is a Reuters reporter covering the U.S. arms trade and defense industry. Most recently Mike has been focused on the Golden Dome missile defense shield. Mike also spends a lot of his time writing on Ukraine and how industry has adapted, or faltered as it supports that conflict. Mike, a New Yorker, has extensively covered how the U.S. has supplied Ukraine with weapons, the cadence, decisions and milestones that have had battlefield impacts. Before his time in Washington Mike’s coverage focused on mergers and acquisitions for oil and gas companies, financial institutions, defense companies, consumer product makers, retailers, real estate giants, and telecommunications companies.

Lockheed Martin (LMT +10.00%) stock surged ahead 9% through 1:22 p.m. ET Thursday after crushing on earnings this morning.

Analysts expected Lockheed to report $7.23 per share in profit on $19.4 billion in sales for Q2 2026. Instead, Lockheed earned $7.94 per share on $20.1 billion in sales -- and then raised guidance.

Image source: Lockheed Martin.

Lockheed Martin Q2 earnings Lockheed grew its sales 11% year over year, while profits surged an astounding 444%, rebounding from weak profits a year ago that were burdened by losses on "a classified program at Aeronautics" as well as a pair of helicopter programs for foreign customers. Sales increased in all four of the company's main business divisions, and year-ago losses at Aeronautics and Rotary and Mission Systems (those were the helicopter programs) were erased.

Free cash flow flipped from negative $150 million to positive $2.9 billion.

So you can understand why investors were pleased.

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What's next for Lockheed Martin stock Turning next to guidance, Lockheed kept the good news coming.

Full-year sales previously forecast to fall below $80 billion will now more likely approximate $80.8 billion, plus or minus $1 billion. Earnings will similarly be about $0.50 per share better than forecast -- between $29.95 and $30.65. Free cash flow for the year should range from $7 billion to $7.2 billion, also ahead of prior expectations.

All things considered, Lockheed is doing its darnedest to prove out my optimism about the stock. Although the shares still look a little pricey when valued on GAAP profit, the strong cash production has Lockheed stock trading for only about 16.5x free cash flow.

Between its 11% sales growth rate and near-3% dividend yield, I still believe Lockheed stock is cheap enough to buy,

Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.

U.S. stocks were lower, with the Dow Jones index dipping around 450 points on Thursday.

Lockheed Martin reported quarterly earnings of $7.94 per share which beat the analyst consensus estimate of $7.09 per share. The company reported quarterly sales of $20.063 billion which beat the analyst consensus estimate of $19.344 billion.

Lockheed Martin shares jumped 11.4% to $573.21 on Thursday.

Here are some other big stocks recording gains in today’s session.

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Defense primes are ripping higher Thursday morning even as the broader market sags. Lockheed Martin (NYSE:LMT | LMT Price Prediction) stock is up 10% to $567.71, while RTX (NYSE:RTX) shares are up 7% to $208.48. The S&P 500 is down 1.16%, making the divergence a standout story of today’s session.

The move follows beat-and-raise Q2 2026 results from both of these defense contractors, released before the open. Investors are treating the results as confirmation that global rearmament is still translating into record backlogs and rising cash flow.

Beat-and-Raise Quarters With Record Backlogs Lockheed Martin posted adjusted EPS of $7.94 on revenue of $20.1 billion, up 11% year over year, versus roughly $7.23 and $19.37 billion expected. The company booked $65 billion of new Q2 orders, including a multi-year $35 billion THAAD interceptor agreement with the Missile Defense Agency, taking backlog to a record $230 billion.

Management raised Lockheed Martin’s full-year 2026 guidance across the board, lifting EPS to $29.95 to $30.65, revenue to $79.75 billion to $81.75 billion, and free cash flow to $7 billion to $7.2 billion. Lockheed Martin CEO Jim Taiclet, in the company’s 8-K filing, cited a “higher trajectory for our business.” One nuance: the year-over-year profit swing benefits from easy comps, since the prior-year period absorbed about $1.6 billion in losses tied to a classified program and helicopter contracts.

Meanwhile, RTX’s report was even more striking on the top line. The company delivered adjusted EPS of $1.89 on revenue of $24.7 billion, up 16% organically, its fifth consecutive beat. The company’s backlog hit a record $289 billion ($170 billion commercial aerospace, $119 billion defense), with Q2 free cash flow of $2.9 billion.

Furthermore, RTX raised its full-year outlook to EPS of $7.10 to $7.25, revenue of $95 billion to $96 billion, and organic sales growth of 8% to 9% from 5% to 6%. CEO Chris Calio stated that “demand remains robust, and our backlog is up 22 percent year over year.” Patriot, Standard Missile, and AMRAAM volume drove the Raytheon segment, while Pratt & Whitney’s commercial aftermarket climbed 25%.

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Sector Strength Lifts Boeing and the Defense ETF The rally is spilling across aerospace and defense. Boeing (NYSE:BA) stock is unchanged at $209, which might not sound impressive but bear in mind that the stock market is down overall. Boeing didn’t report today, so the move reads as sympathy strength on broader aerospace sentiment rather than a company-specific catalyst.

The iShares U.S. Aerospace & Defense ETF (NYSEARCA:ITA) is also trading higher with the group, giving investors a diversified way to play the theme. The fund holds Lockheed Martin, RTX, and Boeing, with RTX among its top weights. Investors should note the ETF’s single-sector concentration in a handful of large-cap names, though it’s not leveraged.

The rally comes on top of a strong year. Lockheed Martin stock has climbed 37% over the past 12 months, and RTX shares are up 35%. Both have run hard, and while the bull case rests on sustained defense budgets, program execution, and orderly conversion of backlog into cash, government budget dependence and fixed-price program risk remain real overhangs.

What to Watch Lockheed Martin’s earnings call took place at 8:30 a.m. ET, and RTX’s kicked off at 7:30 a.m. ET, so any color on munitions capacity and F-35 delivery cadence should filter through analyst notes by midday. Investors can watch for whether LMT stock and RTX shares hold their morning gains into the close and whether sell-side price targets follow the raised guidance higher.

Position sizing should stay measured given how much these names have already appreciated. With backlogs at records and guidance raised across both companies, the setup favors the bulls, but the easy money on the initial earnings pop may already be priced in.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and RTX didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Lockheed Martin's stock jumps as a ramp up in missile production helped lead to an earnings beat and raise.

Sales increase of 11% to $20.1 billion Net earnings of $1.8 billion, or $7.94 per share Cash from operations of $3.2 billion and free cash flow of $2.9 billion Record backlog of $230 billion, inclusive of the multi-year contract to produce THAAD interceptors Updates 2026 financial outlook , /PRNewswire/ -- Lockheed Martin Corporation (NYSE: LMT) today reported second quarter 2026 sales of $20.1 billion, compared to $18.2 billion in the second quarter of 2025. Net earnings in the second quarter of 2026 were $1.8 billion, or $7.94 per share, compared to $342 million, or $1.46 per share, including $1.6 billion of program losses and $169 million of other charges, in the second quarter of 2025. Cash from operations was $3.2 billion in the second quarter of 2026, compared to $201 million in the second quarter of 2025. Free cash flow was $2.9 billion in the second quarter of 2026, compared to $(150) million in the second quarter of 2025.

"We delivered strong second‑quarter performance, with over $20 billion in sales – a year‑over‑year increase of 11% – free cash flow of $2.9 billion, and $65 billion of new orders, which takes our backlog to a record $230 billion. This continued performance reflects more than just increased customer demand – it is evidence that our 21st Century Security® strategy, and its focus on integration, partnerships and operational excellence is working, resulting in increased business, and advancing the security needs of our nation and allies. We are delivering on our strategy, achieving a higher trajectory for our business and giving us confidence to raise our full year financial guidance. We now anticipate accelerated year‑over‑year sales growth of approximately 8%, driving 28% higher segment operating profit, and increased free cash flow, now projected to be over $7 billion," said Lockheed Martin Chairman, President and CEO Jim Taiclet.

"These results are powered by consistent performance on the commitments we've made and by our investments to support the missions our customers will face next. Over the quarter, we took a major step forward in transforming munitions production, putting the framework agreements we announced earlier this year into action by signing a $35 billion multi-year contract with the Missile Defense Agency for THAAD. We continue to innovate at the speed our customers' missions demand, taking our Sanctum counter-drone system from concept to successful live fire testing in just 45 days by combining a battle manager, radar, launcher, and combat-proven missile into one engagement chain. And, we are investing strategically to strengthen global defense manufacturing capabilities through our collaboration with General Motors Defense in the U.S. and our agreement with Rheinmetall to co-produce ATACMS in Europe."

Summary Financial Results

(in millions, except per share data)

Quarters Ended

Six Months Ended

June 28,

2026

June 29,

2025

June 28,

2026

June 29,

2025

Sales

$         20,063

$         18,155

$         38,084

$         36,118

Business segment operating profit1

$          2,162

$             571

$          3,985

$           2,656

Unallocated items

FAS/CAS pension operating adjustment

422

379

843

758

Impairment and other charges

—

(66)

—

(66)

Intangible asset amortization expense

(50)

(63)

(100)

(127)

Other, net2

(55)

(73)

(186)

(101)

Total unallocated items

317

177

557

464

Consolidated operating profit

$          2,479

$             748

$          4,542

$           3,120

Net earnings

$          1,836

$             342

$          3,324

$           2,054

Diluted earnings per share

$            7.94

$            1.46

$          14.38

$            8.75

Cash from operations

$          3,235

$             201

$          3,455

$           1,610

Capital expenditures

(318)

(351)

(829)

(805)

Free cash flow1

$          2,917

$            (150)

$          2,626

$             805

1

Business segment operating profit and free cash flow are non-GAAP measures. See the "Use of Non-GAAP Financial Measures" section of this news
release for more information.

2

Other, net for the quarters ended June 28, 2026 and June 29, 2025 included net gains of $36 million ($27 million, or $0.12 per share, after-tax)
and $18 million ($14 million,or $0.06 per share, after tax) due to changes in fair value of net assets and liabilities for deferred compensation plans.

Sales: Second quarter 2026 sales increased $1.9 billion, or 11%, driven by growth across all segments reflecting increased volume and munitions ramps.

Consolidated Operating Profit: Second quarter 2026 consolidated operating profit increased $1.7 billion largely driven by combined prior year reach-forward losses of $1.6 billion on a classified program at Aeronautics, and on the Canadian Maritime Helicopter Program (CMHP) and the Turkish Utility Helicopter Program (TUHP) at Rotary and Mission Systems; prior year write-off of $66 million for fixed assets; and a $43 million increase in the FAS/CAS operating adjustment.

Business Segment Operating Profit: Second quarter 2026 business segment operating profit increased $1.6 billion due to the prior year reach-forward losses described above and munition ramps at Missiles and Fire Control.

Net Earnings and Diluted EPS: Second quarter 2026 net earnings increased $1.5 billion and diluted earnings per share increased $6.48 primarily due to higher consolidated operating profit of $1.7 billion described above, partially offset by a $267 million increase in income tax expense.

Cash Flows: Second quarter 2026 cash from operations and free cash flows increased $3.0 billion primarily due to the timing of customer receipts and lower tax payments. The company's cash activities during the second quarter of 2026 included capital expenditures of $318 million and independent research and development of $558 million.

2026 Financial Outlook

The following guidance table contains forward-looking statements, which are based on the company's expectations at the time of this news release. Actual results may differ materially from those projected. It is the company's practice not to incorporate adjustments in its financial outlook for proposed acquisitions (such as the recently announced agreement to acquire Ultra Maritime), divestitures, joint ventures, changes in tax laws, or special items until such items have been consummated or enacted. Refer to the "Forward-Looking Statements" section contained in this press release and Form 10-Q for factors that may impact the company's ability to achieve guidance or meet expectations.

(in millions, except per share data)

Current Update

April 2026

Sales

~$79,750 - $81,750

$77,500 - $80,000

Business segment operating profit1

~$8,500 - $8,700

$8,425 - $8,675

Total FAS/CAS pension adjustment

~$1,365

~$1,365

Diluted earnings per share

~$29.95 - $30.65

$29.35 - $30.25

Cash from operations

~$9,200 - $9,400

$9,150 - $9,450

Capital expenditures

~$2,000 - $2,400

$2,500 - $2,800

Free cash flow1

~$7,000 - $7,200

$6,500 - $6,800

1

Business segment operating profit and free cash flow are non-GAAP measures. See the "Use of Non-GAAP Financial Measures" section of this
news release for more information.

Segment Results

(in millions)

Quarters Ended

Six Months Ended

June 28,

2026

June 29,

2025

June 28,

2026

June 29,

2025

Sales

Aeronautics

$         8,112

$         7,420

$        15,065

$        14,477

Missiles and Fire Control

4,101

3,433

7,750

6,806

Rotary and Mission Systems

4,354

3,995

8,345

8,323

Space

3,496

3,307

6,924

6,512

Total sales

$        20,063

$        18,155

$        38,084

$        36,118

Operating profit (loss) 

Aeronautics

$            760

$            (98)

$          1,379

$            622

Missiles and Fire Control

594

479

1,094

944

Rotary and Mission Systems

437

(172)

860

349

Space

371

362

652

741

Total business segment operating profit

2,162

571

3,985

2,656

Unallocated items

FAS/CAS operating adjustment

422

379

843

758

Impairment and other charges

—

(66)

—

(66)

Intangible asset amortization expense

(50)

(63)

(100)

(127)

Other, net

(55)

(73)

(186)

(101)

Total unallocated items

317

177

557

464

Total consolidated operating profit

$         2,479

$            748

$          4,542

$          3,120

Aeronautics 

(in millions)

Quarters Ended

Six Months Ended

June 28,

2026

June 29,

2025

June 28,

2026

June 29,

2025

Sales

$    8,112

$    7,420

$    15,065

$    14,477

Operating profit (loss)

760

(98)

1,379

622

Operating margin

9.4 %

(1.3 %)

9.2 %

4.3 %

Second quarter 2026 sales increased $692 million, or 9%, compared to the second quarter of 2025. The increase was primarily due to higher sales of $475 million on the F‑35 program as a result of higher volume on production contracts, and $360 million due to the sales impact of the reach-forward loss recognized on a classified contract in 2025. These increases were partially offset by lower sales of $120 million on F-16 and C-130 programs due to lower volume on sustainment contracts.

Second quarter 2026 operating profit increased $858 million compared to the second quarter of 2025. The increase was attributable to the $950 million reach-forward loss recognized on a classified contract in 2025, and higher sales volume on F-35 production contracts. The increases were partially offset by $160 million of lower net favorable profit adjustments across the portfolio.

Missiles and Fire Control

(in millions)

Quarters Ended

Six Months Ended

June 28,

2026

June 29,

2025

June 28,

2026

June 29,

2025

Sales

$       4,101

$       3,433

$      7,750

$      6,806

Operating profit

594

479

1,094

944

Operating margin

14.5 %

14.0 %

14.1 %

13.9 %

Second quarter 2026 sales increased $668 million, or 19%, compared to the second quarter of 2025. The increase was primarily attributable to higher sales of $560 million on integrated air and missile defense programs due to production ramps (PAC-3 and THAAD), and $100 million on tactical and strike missile programs due to production ramps (Precision Strike Missile (PrSM)).

Second quarter 2026 operating profit increased $115 million, or 24%, compared to the second quarter of 2025. The increase was primarily attributable to higher sales volume previously described, and $60 million due to higher net favorable profit adjustments.

Rotary and Mission Systems

(in millions)

Quarters Ended

Six Months Ended

June 28,

2026

June 29,

2025

June 28,

2026

June 29,

2025

Sales

$    4,354

$    3,995

$      8,345

$      8,323

Operating profit (loss)

437

(172)

860

349

Operating margin

10.0 %

(4.3 %)

10.3 %

4.2 %

Second quarter 2026 sales increased $359 million, or 9%, compared to the second quarter of 2025. The increase was attributable to higher sales of $255 million on Sikorsky helicopter programs due to the sales impact of the reach-forward loss recognized on the Canadian Maritime Helicopter Program (CMHP) and the Türkish Utility Helicopter Program (TUHP) in 2025, and $115 million on Mission Integrated Command & Control (MIC2) programs due to higher volume on undersea combat systems programs and the River Class Destroyer program.

Second quarter 2026 operating profit increased $609 million compared to the second quarter of 2025. The increase was attributable to the $570 million reach-forward loss recognized on the CMHP program and the $95 million reach-forward loss recognized on the TUHP program in 2025. This increase was offset by unfavorable profit adjustments of $65 million on Heavy Lift and $50 million on Seahawk programs, partially offset by higher net favorable profit adjustments across the portfolio.

Space

(in millions)

Quarters Ended

Six Months Ended

June 28,

2026

June 29,

2025

June 28,

2026

June 29,

2025

Sales

$    3,496

$    3,307

$      6,924

$      6,512

Operating profit

371

362

652

741

Operating margin

10.6 %

10.9 %

9.4 %

11.4 %

Second quarter 2026 sales increased $189 million, or 6%, compared to the second quarter of 2025. The increase was primarily attributable to higher sales of $190 million on strategic and missile defense programs due to increased volume (Fleet Ballistic Missile (FBM) and Next Generation Interceptor (NGI)).

Second quarter 2026 operating profit was comparable to the second quarter of 2025.

Income Taxes

The company's effective income tax rates were 15.7% and 18.0% for the quarters ended June 28, 2026 and June 29, 2025. The lower effective income tax rate for the quarter ended June 28, 2026 was primarily attributable to lower interest expense on the company's uncertain tax position and the reach-forward losses recognized in 2025. The rates for all periods benefited from the tax deductions for foreign derived deduction eligible income, research and development tax credits, dividends paid to the company's defined contribution plans with an employee stock ownership plan feature and employee equity awards.

On February 18, 2026, the U.S. Department of Treasury issued Notice 2026-7 (the Notice) providing additional interim guidance regarding the application of the CAMT. As a result of the One Big Beautiful Bill Act (the Tax Act) and the Notice, the company is no longer subject to CAMT this year and expects to make reduced federal income tax payments for 2026.

Use of Non-GAAP Financial Measures

This news release contains the following non-generally accepted accounting principles (non-GAAP) financial measures (as defined by U.S. Securities and Exchange Commission (SEC) Regulation G). While management believes that these non-GAAP financial measures may be useful in evaluating the financial performance of the company, this information should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. In addition, the company's definitions for non-GAAP financial measures may differ from similarly titled measures used by other companies or analysts.

Business segment operating profit

Business segment operating profit represents operating profit from the company's business segments before unallocated income and expense. This measure is used by the company's senior management in evaluating the performance of its business segments and is a performance goal in the company's annual incentive plan. Business segment operating margin is calculated by dividing business segment operating profit by sales. The table below reconciles the non-GAAP measure business segment operating profit with the most directly comparable GAAP financial measure, consolidated operating profit.

(in millions)

Current Update

April 2026

Business segment operating profit (non-GAAP)

~$8,500 - $8,700

$8,425 - $8,675

FAS/CAS operating adjustment1

~1,685

~1,685

Intangible asset amortization expense

~(200)

~(200)

Other, net

~(490)

~(475)

Consolidated operating profit (GAAP)

~$9,495 - $9,695

$9,435 - $9,685

1

Reflects the amount by which total CAS pension cost of $1.7 billion exceeds FAS pension service cost
and excludes non-service FAS pension expense. Refer to the supplemental table "Selected Financial Data"
included in this news release for a detail of the FAS/CAS operating adjustment.

Free cash flow

Free cash flow is a non-GAAP financial measure that the company defines as cash from operations less capital expenditures. The company's capital expenditures are comprised of equipment and facilities infrastructure and information technology (inclusive of costs for the development or purchase of internal-use software that are capitalized). The company uses free cash flow to evaluate its business performance and overall liquidity. While management believes that free cash flow as a non-GAAP financial measure may be useful in evaluating the company's financial performance, it should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP and may not be comparable to similarly titled measures used by other companies.

Webcast and Conference Call Information

Lockheed Martin Corporation will webcast live the earnings results conference call (listen-only mode) on Thursday, July 23, 2026, at 8:30 a.m. ET on the Lockheed Martin Investor Relations website at www.lockheedmartin.com/investor.  The accompanying presentation slides and relevant financial charts are also available at www.lockheedmartin.com/investor. 

For additional information, visit the company's website: www.lockheedmartin.com. 

About Lockheed Martin

Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at www.lockheedmartin.com. 

Forward-Looking Statements

This news release contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Lockheed Martin's current expectations and assumptions. The words "believe," "estimate," "anticipate," "project," "intend," "expect," "plan," "outlook," "scheduled," "forecast" and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to factors such as:

the company's reliance on contracts with the U.S. Government, which are dependent on U.S. Government funding and can be terminated for convenience, and the company's ability to negotiate favorable contract terms; budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms, the debt ceiling and government shutdowns, and changing funding and acquisition priorities; risks related to the development, production, sustainment, performance, schedule, cost and requirements of complex and technologically advanced programs, including the F-35 program; the timing of contract awards or contract definitization, decisions by government customers to impose contract terms following undefinitized contract actions, achievement of performance milestones, customer acceptance of product deliveries, and receipt of customer payments; the company's ability to recover costs under U.S. Government contracts, the mix of fixed-price and cost-reimbursable contracts and the risks inherent in preparing estimates for fixed-price contracts (particularly for complex and technologically advanced programs); customer procurement and other policies, laws, regulations and executive actions that affect the company and its industry, programs, future opportunities, and financial performance, including those relating to mission priorities, competing domestic and international spending, contracting terms (such as fixed-price requirements), acquisition process reforms, treatment of contractor performance issues, and contractor access to competitive opportunities; planned production rates and orders for significant programs, compliance with stringent performance and reliability standards, and materials availability, including government furnished equipment and rare earth minerals; performance and/or financial viability of key suppliers, teammates, joint ventures (including United Launch Alliance, for which the company has provided and expects to provide additional financial guarantees), joint venture partners, subcontractors and customers; changes in economic, capital market and political conditions in the U.S. and globally; the impact of inflation and other cost pressures; government actions that restrict or prevent the sale or delivery of the company's products (such as delays in approvals for exports requiring Congressional notification); foreign policy and international trade actions taken by governments such as tariffs, sanctions, embargoes, export and import controls, buying preferences, and other trade restrictions; the company's success expanding into and doing business in adjacent markets and internationally and the risks posed by international sales, including potential effects from fluctuations in currency exchange rates; changes in non-U.S. national priorities and government budgets and planned orders; the competitive environment for the company's products and services; the company's ability to develop and commercialize new technologies and products, including emerging digital and network technologies and capabilities; the company's ability to benefit fully from or adequately protect its intellectual property rights; the company's ability to attract and retain a highly skilled workforce and the impact of work stoppages or other labor disruptions; cyber or other security threats or other disruptions faced by the company or its suppliers; the company's ability to implement and continue, and the timing and impact of, capitalization changes such as share repurchases, dividend payments and financing transactions, including as a result of presidential executive orders; the accuracy of the company's estimates and projections; changes in pension plan assumptions and actual returns on pension assets; cash funding requirements and pension annuity contracts and associated charges; realizing the anticipated benefits of acquisitions or divestitures, investments, joint ventures, teaming arrangements or internal reorganizations, and market volatility affecting the fair value of investments that are marked to market; the satisfaction of conditions to (including regulatory approvals) and consummation of the company's announced acquisition of Ultra Maritime, if at all, the timing and terms of any financing for such acquisition and the impact thereof on its indebtedness and capital allocation, its ability to successfully integrate the Ultra Maritime business and realize synergies and other expected benefits of the transaction and the potential for disruption to its or Ultra Maritime's business, customer and supplier relationships, and retention of key personnel during the pendency of the transaction; the company's efforts to fund and increase production capabilities and the efficiency of its operations and improve the affordability of its products and services, including through digital transformation and cost reduction initiatives; the risk of an impairment of the company's assets, including the potential impairment of goodwill and intangibles; the availability and adequacy of the company's insurance and indemnities; compliance with laws, regulations, policies, and customer requirements relating to environmental matters; the impact of public health crises, natural disasters and other severe weather conditions on the company's business and financial results, including supply chain disruptions and delays, employee absences, and program delays; changes in accounting, U.S. or foreign tax, export or other laws, regulations, and policies and their interpretation or application, and changes in the amount or reevaluation of uncertain tax positions; and the outcome of legal proceedings, bid protests, environmental remediation efforts, audits, administrative reviews, government investigations or government allegations that the company has failed to comply with law, other contingencies and U.S. Government identification of deficiencies in its business systems. These are only some of the factors that may affect the forward-looking statements contained in this news release. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see the company's filings with the U.S. Securities and Exchange Commission including, but not limited to, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in the company's most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q. The company's filings may be accessed through the Investor Relations page of its website, www.lockheedmartin.com/investor, or through the website maintained by the SEC at www.sec.gov.

The company's actual financial results likely will be different from those projected due to the inherent nature of projections. Given these uncertainties, forward-looking statements should not be relied on in making investment decisions. The forward-looking statements contained in this news release speak only as of the date of its issuance. Except where required by applicable law, the company expressly disclaims a duty to provide updates to forward-looking statements after the date of this news release to reflect subsequent events, changed circumstances, changes in expectations, or the estimates and assumptions associated with them. The forward-looking statements in this news release are intended to be subject to the safe harbor protection provided by the federal securities laws.

Lockheed Martin Corporation

Consolidated Statements of Earnings1

(unaudited; in millions, except per share data)

Quarters Ended

Six Months Ended

June 28,

2026

June 29,

2025

June 28,
2026

June 29,
2025

Sales

$     20,063

$      18,155

$     38,084

$      36,118

Operating costs and expenses

(17,617)

(17,421)

(33,560)

(33,061)

Gross profit

2,446

734

4,524

3,057

Other income, net

33

14

18

63

Operating profit2

2,479

748

4,542

3,120

Interest expense

(266)

(274)

(535)

(542)

Non-service FAS pension expense

(80)

(99)

(160)

(197)

Other non-operating income, net

45

42

105

72

Earnings before income taxes

2,178

417

3,952

2,453

Income tax expense

(342)

(75)

(628)

(399)

Net earnings

$       1,836

$          342

$       3,324

$       2,054

Effective tax rate

15.7 %

18.0 %

15.9 %

16.3 %

Earnings per common share

Basic

$         7.98

$         1.46

$       14.45

$         8.78

Diluted

$         7.94

$         1.46

$       14.38

$         8.75

Weighted average shares outstanding

Basic

230.2

233.5

230.1

234.0

Diluted

231.1

234.3

231.1

234.8

Common shares reported in stockholders'

  equity at end of period

230

232

1

The company closes its books and records on the last Sunday of the calendar quarter to align its financial closing with its business processes, which was on June 28, for the second quarter of 2026 and June 29, for the second quarter of 2025. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods, as the company's fiscal year ends on Dec. 31.

2

As previously described, operating profit for the quarter ended June 29, 2025 included losses of $950 million ($713 million, or $3.04 per share, after-tax) on a classified program at its Aeronautics business segment, and $570 million ($428 million, or $1.83 per share, after-tax) on CMHP and $95 million ($71 million, or $0.30 per share, after-tax) on TUHP at its RMS business segment.

Lockheed Martin Corporation

Business Segment Summary Operating Results

(unaudited; in millions)

Quarters Ended

Six Months Ended

June 28,
2026

June 29,
2025

%
Change

June 28,
2026

June 29,
2025

%
Change

Sales

Aeronautics

$      8,112

$      7,420

9 %

$  15,065

$  14,477

4 %

Missiles and Fire Control

4,101

3,433

19 %

7,750

6,806

14 %

Rotary and Mission Systems

4,354

3,995

9 %

8,345

8,323

— %

Space

3,496

3,307

6 %

6,924

6,512

6 %

Total sales

$    20,063

$    18,155

11 %

$  38,084

$  36,118

5 %

Operating profit (loss) 

Aeronautics1

$        760

$         (98)

NM*

$   1,379

$      622

122 %

Missiles and Fire Control

594

479

24 %

1,094

944

16 %

Rotary and Mission Systems2

437

(172)

NM*

860

349

146 %

Space

371

362

2 %

652

741

(12 %)

Total business segment operating profit

2,162

571

279 %

3,985

2,656

50 %

Unallocated items

FAS/CAS operating adjustment

422

379

843

758

Impairment and other charges

—

(66)

—

(66)

Intangible asset amortization expense

(50)

(63)

(100)

(127)

Other, net

(55)

(73)

(186)

(101)

Total unallocated items

317

177

79 %

557

464

20 %

Total consolidated operating profit

$      2,479

$        748

231 %

$   4,542

$   3,120

46 %

Operating margin

Aeronautics

9.4 %

(1.3 %)

9.2 %

4.3 %

Missiles and Fire Control

14.5 %

14.0 %

14.1 %

13.9 %

Rotary and Mission Systems

10.0 %

(4.3 %)

10.3 %

4.2 %

Space

10.6 %

10.9 %

9.4 %

11.4 %

Total business segment operating margin

10.8 %

3.1 %

10.5 %

7.4 %

Total consolidated operating margin

12.4 %

4.1 %

11.9 %

8.6 %

1

As previously described, operating profit for the quarter ended June 29, 2025 included losses of $950 million ($713 million, or $3.04 per share, after-tax) at its Aeronautics business segment.

2

As previously described, operating profit for the quarter ended June 29, 2025 included losses of $570 million ($428 million, or $1.83 per share, after-tax) on CMHP and $95 million ($71 million, or $0.30 per share, after-tax) on TUHP at its RMS business segment.

*

NM - not meaningful

Lockheed Martin Corporation

Consolidated Balance Sheets

(in millions, except par value)

June 28,

2026

Dec. 31,

2025

(unaudited)

Assets

Current assets

Cash and cash equivalents

$          3,791

$          4,121

Receivables, net

3,356

3,901

Contract assets

16,038

13,001

Inventories

4,411

3,524

Other current assets

805

815

Total current assets

28,401

25,362

Property, plant and equipment, net

11,390

11,292

Goodwill

11,298

11,314

Intangible assets, net

1,787

1,887

Deferred income taxes

2,414

2,975

Other noncurrent assets

7,160

7,010

Total assets

$        62,450

$        59,840

Liabilities and equity

Current liabilities

Accounts payable

$          4,915

$          3,630

Salaries, benefits and payroll taxes

3,003

3,184

Contract liabilities

12,151

11,440

Current maturities of long-term debt

—

1,168

Other current liabilities

3,740

3,913

Total current liabilities

23,809

23,335

Long-term debt, net

20,538

20,532

Accrued pension liabilities

3,931

3,915

Other noncurrent liabilities

5,404

5,337

Total liabilities

53,682

53,119

Stockholders' equity

Common stock, $1 par value per share

230

229

Additional paid-in capital

247

—

Retained earnings

15,759

14,034

Accumulated other comprehensive loss

(7,468)

(7,542)

Total stockholders' equity

8,768

6,721

Total liabilities and equity

$        62,450

$        59,840

Lockheed Martin Corporation

Consolidated Statements of Cash Flows

(unaudited; in millions)

Six Months Ended

June 28,
2026

June 29,
2025

Operating activities

Net earnings

$          3,324

$         2,054

Adjustments to reconcile net earnings to net cash provided by operating activities

Depreciation and amortization

798

796

Stock-based compensation

180

141

Deferred income taxes

538

(561)

Impairment and other charges

—

66

Reach-forward losses on select programs

—

1,615

Qualified defined benefit pension plans

184

223

Changes in assets and liabilities

Receivables, net

545

(955)

Contract assets

(3,037)

(2,178)

Inventories

(887)

(461)

Accounts payable

1,409

1,500

Contract liabilities

711

(360)

Income taxes

43

251

Other, net

(353)

(521)

Net cash provided by operating activities

3,455

1,610

Investing activities

Capital expenditures

(829)

(805)

Other, net

(61)

(340)

Net cash used for investing activities

(890)

(1,145)

Financing activities

Repayments of long-term debt

(1,168)

(142)

Proceeds from commercial paper, net

—

1,449

Repurchases of common stock

—

(1,250)

Dividends paid

(1,612)

(1,567)

Other, net

(115)

(145)

Net cash used for financing activities

(2,895)

(1,655)

Net change in cash and cash equivalents

(330)

(1,190)

Cash and cash equivalents at beginning of period

4,121

2,483

Cash and cash equivalents at end of period

$          3,791

$         1,293

Lockheed Martin Corporation

Selected Financial Data

(unaudited; in millions)

2026

Outlook

2025

Actual

Total FAS pension expense and CAS cost

FAS pension expense

$          (370)

$          (924)

Less: CAS pension cost

1,735

1,568

Total FAS/CAS pension adjustment

$         1,365

$           644

Less: pension settlement charge

—

479

Total FAS/CAS pension adjustment - adjusted1

$         1,365

$         1,123

Service and non-service cost reconciliation

FAS pension service cost

$            (50)

$            (50)

Less: CAS pension cost

1,735

1,568

FAS/CAS pension operating adjustment

1,685

1,518

Non-service FAS pension expense

(320)

(874)

Total FAS/CAS pension adjustment

$         1,365

$           644

Less: pension settlement charge

—

479

Total FAS/CAS pension adjustment - adjusted1

$         1,365

$         1,123

1

The cost components in the table above relate only to the company's qualified defined benefit pension plans. The company recognized a

noncash, non-operating pretax settlement charge of $479 million in the fourth quarter of 2025.

Lockheed Martin Corporation

Other Financial and Operating Information

(unaudited; in millions, except for aircraft deliveries and weeks)

Backlog

June 28,

2026

Dec. 31,

2025

Aeronautics

$        54,356

$        59,435

Missiles and Fire Control

87,882

46,650

Rotary and Mission Systems

48,454

47,715

Space

39,724

39,822

Total backlog

$       230,416

$       193,622

Quarters Ended

Six Months Ended

Aircraft Deliveries

June 28,
2026

June 29,
2025

June 28,
2026

June 29,
2025

F-35

19

50

51

97

F-16

2

3

2

7

C-130J

7

1

8

2

Government helicopter programs

16

24

35

33

Commercial helicopter programs

—

—

—

1

Number of Weeks in Reporting Period1

2026

2025

First quarter

12

13

Second quarter

13

13

Third quarter

13

13

Fourth quarter

14

13

1

Calendar quarters are typically comprised of 13 weeks. However, the company closes its books and records on the last Sunday of each month, except for the month of Dec., as its fiscal year ends on Dec. 31. As a result, the number of weeks in a reporting quarter may vary slightly during the year and for comparable prior year periods.

SOURCE Lockheed Martin

Lockheed Martin logo is seen in this illustration taken July 26, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

July 23 (Reuters) - Defense giant Lockheed Martin (LMT.N), opens new tab lifted its 2026 sales and profit forecasts on Thursday ​as the Pentagon looks to replenish weapons stockpiles amid a wave ‌of global conflicts.

Shares of the company rose 5.3% in premarket trading.

The Reuters Iran Briefing newsletter keeps you informed with the latest developments and analysis of the Iran war. Sign up here.

President Donald Trump has been urging defense contractors to increase production as the U.S.-Israeli war on Iran and a prolonged Russia-Ukraine conflict drain the Pentagon's inventory.

Revenue ​for Lockheed's missiles and fire control business rose nearly 20% to $4.1 billion, driven by a production ramp-up ​of its PAC-3 and Precision Strike missiles, both of which have been used in ⁠the war on Iran in the last few months.

The segment was also helped ​by higher production of its THAAD missile interceptors, after the company signed a $35 billion contract with ​the U.S. government in June to quadruple output.

Demand is expected to remain strong as the U.S. has used more than 50,000 rockets, missiles and rocket-propelled munitions since the start of the Russia-Ukraine ​conflict in 2022 through the U.S. attack on Iran, according to Pentagon data.

"We're in active ​dialog looking at other potential opportunities. We do see a real opportunity here for more partnerships ‌to ⁠scale production faster, particularly in Europe," CFO Evan Scott said on a call with Reuters.

Sales in Lockheed's aeronautics segment also rose 9%, partly supported by higher production volume and sales of its F-35 stealth fighters. The F-35 is the Pentagon's largest acquisition program, with lifetime ​costs estimated at more ​than $2 trillion to ⁠purchase, operate and sustain the aircraft.

Lockheed's total backlog grew to $230.4 billion, up 38.3% from $166.5 billion last year.

It expects 2026 revenue between $79.75 billion and $81.75 billion, ​higher than the previous forecast range of $77.5 billion to $80 billion. Analysts ​on average ⁠expect $79.14 billion, according to data compiled by LSEG.

It now expects full-year per-share profit of $29.95 to $30.65, compared with its earlier projection of $29.35 to $30.25, and higher than Wall Street estimates of $29.90.

The Bethesda, Maryland-based company reported ⁠a second-quarter ​profit of $7.94 per share, compared with $1.46 apiece last year, when it ​was hit by a $1.6 billion charge due to difficulties in the Aeronautics unit and international helicopter programs in its ​Sikorsky segment.

Reporting by Aishwarya Jain in Bengaluru; Editing by Sahal Muhammed and Chizu Nomiyama

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Mike Stone is a Reuters reporter covering the U.S. arms trade and defense industry. Most recently Mike has been focused on the Golden Dome missile defense shield. Mike also spends a lot of his time writing on Ukraine and how industry has adapted, or faltered as it supports that conflict. Mike, a New Yorker, has extensively covered how the U.S. has supplied Ukraine with weapons, the cadence, decisions and milestones that have had battlefield impacts. Before his time in Washington Mike’s coverage focused on mergers and acquisitions for oil and gas companies, financial institutions, defense companies, consumer product makers, retailers, real estate giants, and telecommunications companies.

Lockheed Martin Corporation (NYSE:LMT) will release its second quarter earnings report before the opening bell on Thursday, July 23.

Analysts expect the Bethesda, Maryland-based company to report quarterly earnings of $7.20 per share, up from $1.46 per share in the year-ago period. The consensus estimate for Lockheed Martin’s quarterly revenue is $19.33 billion. It reported $18.16 billion last year, according to Benzinga Pro.

On July 21, Lockheed Martin and Venus Aerospace announced a joint technology development agreement to advance next-generation propulsion for long-range precision fires.

Shares of Lockheed Martin rose 1.4% to close at $514.36 on Wednesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Considering buying LMT stock? Here’s what analysts think:

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Both American Airlines (NASDAQ:AAL | AAL Price Prediction) and Lockheed Martin (NYSE:LMT) report Q2 2026 results before the open on Thursday, July 23, 2026.

Lockheed Martin (LMT 0.66%) stock initially fell more than 4% in Tuesday morning trading before paring its losses in the afternoon. As of 8 2:35 p.m. ET, Lockheed stock is still down -- but now only 0.8%.

But why did Lockheed Martin fall at all?

Image source: Getty Images.

Lockheed's big price rollback The most obvious catalyst for Lockheed Martin's morning sell-off was Lockheed's announcement yesterday of a new PAC-3 Adapted Capability Effector (PAC-3 ACE) Patriot missile that will either replace or supplement Lockheed's existing product, the PAC-3 MSE (for "Missile Segment Enhancement").

That sounds like good news -- more missiles for Lockheed to sell, especially if the ACE supplements existing sales of MSE Patriots. But here's the thing:

Lockheed is marketing ACE as a "low-cost" interceptor missile. But when Lockheed says "low-cost," investors seem to have heard ACE will be "low-profit," endangering the 13% operating profit margin at Lockheed Martin Missiles and Fire Control.

Today's Change

(

-0.66

%) $

-3.37

Current Price

$

506.17

We'll make it up on volume I think that's the wrong way to look at this news, however -- with Lockheed's stock price losses moderating as the day goes on, my hunch is other investors are coming to the same conclusion.

Why? Just because Lockheed advertises a product as "low-cost" doesn't mean the cost will be objectively low -- nor that profit margins will be low. PAC-3 MSE historically cost about $4 million per missile, although it's gotten more expensive due to increased demand in Ukraine and the Persian Gulf. ACE, at a reported $2.5 million price, may cost half as much as an MSE today -- but it's a much smaller discount relative to MSE's historical price.

Factor in lower input costs, plus more sales of cheaper ACEs, and I suspect Lockheed Martin stock is going to do just fine.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.

, /PRNewswire/ -- Lockheed Martin (NYSE: LMT) and Venus Aerospace announced a joint technology development agreement to evaluate and mature Rotating Detonation Rocket Engine (RDRE) technology for future long-range precision fires applications, accelerating the transition of advanced propulsion from flight demonstration to operational capability.

Venus Aerospace successfully completed the first U.S. flight test of a rotating detonation rocket engine (RDRE). Lockheed Martin and Venus Aerospace announced a collaboration to evaluate precision fires applications for the advanced propulsion technology. Photo Credit: Venus Aerospace. The collaboration combines Venus Aerospace's flight-tested propulsion technology with Lockheed Martin's expertise in developing, integrating and rapidly fielding advanced defense systems. Together, the companies will assess how this emerging propulsion architecture could support next-generation precision fires capabilities that require greater range, speed and operational flexibility.

THE BIG PICTURE

As threats evolve and mission demands multiply, the U.S. Department of War is seeking technologies that deliver meaningful performance improvements while remaining affordable, manufacturable and scalable. By combining emerging propulsion technologies with proven launch systems, precision guidance and production expertise, Lockheed Martin continues to expand the pipeline of future capabilities available to the U.S. and its allies.

WHY IT MATTERS

Rotating detonation propulsion could enable future precision fires systems to achieve significantly greater range and speed while remaining compatible with the Army's need for affordable, scalable production. Unlike conventional rocket engines that rely on subsonic combustion, RDREs generate thrust through continuously traveling detonation waves. This approach has the potential to improve propulsion efficiency while reducing complexity, enabling systems to travel farther and respond faster to emerging threats. The agreement enables Lockheed Martin to evaluate RDRE technology within the context of operational military requirements to transition the advanced propulsion concept from a subsystem demonstration environment into practical missile applications. Lockheed Martin's expertise in system integration and advanced manufacturing allows advanced technologies to move more quickly from laboratory development into deployable defense solutions that can be produced at scale. By working with innovative U.S. technology companies, Lockheed Martin is strengthening the nation's defense industrial base and helping accelerate advanced manufacturing capabilities critical to future readiness. EXPERT PERSPECTIVE

"Lockheed Martin is focused on rapidly delivering advanced capabilities that strengthen deterrence and provide decisive advantages for the warfighter," said Tim Cahill, president, Lockheed Martin Missiles and Fire Control. "Our collaboration with Venus Aerospace allows us to evaluate a promising propulsion technology and determine how it can be integrated into future precision fires solutions. Partnerships like this help accelerate innovation, reduce risk and rapidly advance from emerging technology to operational capability." "Defense customers are asking for more than incremental gains from legacy propulsion," said Sassie Duggleby, co-founder and CEO of Venus Aerospace. "Our RDRE technology offers a different propulsion architecture for systems that need more range, more speed and a realistic path to production. This agreement with Lockheed Martin moves our breakthrough closer to real precision fires applications." About Lockheed Martin   
Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at Lockheedmartin.com.

SOURCE Lockheed Martin

Also from this source

Lockheed Martin (LMT), a prime contractor on the U.S. Army's Dark Eagle hypersonic missile program, is facing delivery delays as quality defects continue to aff

Key Takeaways Lockheed Martin is expected to post higher Q2 revenues, supported by strong defense demand.LMT may benefit from higher missile and aircraft deliveries, though margin recovery is expected later in 2026.LMT trades at a valuation discount to its industry, supported by healthy liquidity and long-term demand. Lockheed Martin (LMT - Free Report) is expected to report second-quarter 2026 results on July 23, before market open.

The Zacks Consensus Estimate for earnings is pegged at $7.28 per share, indicating a year-over-year decline of 0.14%. The Zacks Consensus Estimate for revenues is pinned at $19.52 billion, indicating growth of 7.54% from the year-ago reported figure.

Image Source: Zacks Investment Research

LMT’s Earnings Surprise HistoryThe company beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 9.44%.

Image Source: Zacks Investment Research

What Our Quantitative Model PredictsOur proven model does not predict an earnings beat for Lockheed Martin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is -2.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Lockheed Martin carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks Worth a LookSome stocks from the industry that have the combination of factors indicating an earnings beat are RTX Corporation (RTX - Free Report) and Northrop Grumman (NOC - Free Report) . RTX and Northrop Grumman have an Earnings ESP of +2.02% and +0.22%, respectively. RTX has a Zacks Rank #2 and NOC carries a Zacks Rank #3 at present.

Factors That Might Have Impacted LMT’s Q2 PerformanceLockheed Martin entered the second quarter with robust demand across nearly all of its core franchises, positioning the company for sequential revenue growth following the first quarter. Management noted that first-quarter sales were partly affected by a shortened fiscal period and timing-related factors and expects sales to have rebounded in the second quarter.

The Missiles and Fire Control segment is expected to have remained a key growth driver as Lockheed Martin continues to ramp up production of high-demand missile programs, including PAC-3, JASSM, LRASM, and Precision Strike Missile (PrSM). The company has already increased PAC-3 production by more than 60% over the past two years and expects output to accelerate further as new production facilities become operational.

LMT’s Aeronautics unit is likely to have shown improvement relative to the first quarter as several temporary execution issues began to normalize. The company indicated that flight-test issues affecting the new F-16 configuration had been resolved and deliveries had resumed. In addition, C-130 deliveries resumed following the resolution of supplier-related disruptions. These improvements should have enhanced profitability in the to-be-reported quarter.

The company’s second-quarter results are expected to benefit from continued U.S. government and allied support for defense spending — particularly in missile defense, air dominance, and space systems.

Strong backlog and demand momentum are expected to boost second-quarter results. The backlog is supported by sustained global defense demand, particularly for flagship programs like the F-35, missile systems (PAC-3, THAAD), and space-based capabilities. As a result, second-quarter performance might have benefited from ongoing conversion of this backlog into revenues.

Margin recovery across the company is expected to be gradual rather than immediate. Management stated that the most significant margin improvements are anticipated in the second half of 2026, as production milestones are achieved and program risks are retired. Consequently, second-quarter profitability might have remained below historical levels despite improving revenues.

LMT Stock Price PerformanceIn the past three months, the stock has lost 11% compared with the industry’s decline of 0.5%.

Image Source: Zacks Investment Research

LMT Stock Trading at a DiscountLockheed Martin is currently trading at a discount compared to its industry on a forward 12-month P/S basis.
 

Image Source: Zacks Investment Research

RTX is trading at a premium compared to its industry on a forward 12-month P/S basis. Northrop Grumman is trading at a discount compared to its industry on a forward 12-month P/S basis.

LMT Stock’s LiquidityThe company’s current ratio is 1.14 compared with the industry’s average of 1.12. The ratio of more than one suggests a healthy liquidity position where the business can meet its immediate financial obligations without selling long-term assets.

Image Source: Zacks Investment Research

Investment ThesisLockheed Martin is well positioned for sustained long-term growth, supported by strong demand across its core defense franchises and a substantial backlog that provides excellent revenue visibility. The company continues to win contracts for flagship programs such as the F-35 Lightning II, integrated missile defense systems, military helicopters, and precision-guided munitions, driving growth across its business segments. In addition, rising defense budgets among the U.S. and allied nations, coupled with increasing international demand for advanced military capabilities, create a favorable environment for continued revenue expansion, healthy backlog growth, and resilient cash flow generation.

However, Lockheed Martin continues to face execution risk on several complex fixed-price development programs, where production delays, technical challenges, and cost overruns can pressure profitability.

End NoteLMT benefits from its broad portfolio of advanced defense systems, which helps secure major contracts and maintain a strong order backlog. Key programs across space, aeronautics and naval defense continue to support growth.

Given its attractive valuation, revenue growth and strong liquidity, investors might consider adding LMT stock to their portfolios right now.

Lockheed Martin (LMT) rose 0.26% in premarket after announcing a lower-cost Patriot missile aimed at countering drones, unveiled on the opening day of the Farnb

Lockheed Martin Introduces PAC-3 ACE™ - A High-Performance, Low-Cost Interceptor PR Newswire FARNBOROUGH, Engl

PAC-3 ACE costs less than half of PAC-3 MSE

, /PRNewswire/ -- Lockheed Martin (NYSE: LMT) today announced the introduction of the PAC-3® Adapted Capability Effector (PAC-3 ACE™), a low-cost interceptor built to defeat a wide range of air and missile threats for less than half the cost of a PAC-3 MSE per unit.

A rendering of Lockheed Martin’s PAC-3 ACE interceptor. PAC-3 ACE will give allied forces a rapidly fielded, complementary air defense effector option that can be deployed in record time. To achieve this, Lockheed Martin will collaborate with American and European industry partners and suppliers, enhancing the resilience of the U.S. defense industrial base worldwide.

THE BIG PICTURE
Built on the proven PAC‑3 fire‑control system and fully linked to the Patriot weapon system and the Integrated Battle Command System (IBCS), PAC‑3 ACE speeds up development, testing and deployment far beyond traditional programs. It also ensures allied forces can field a common interceptor and bolster the PAC‑3 network at the same time.

WHY IT MATTERS

Cost-effective performance: Significantly lowers the cost-per-kill against a wide range of threats, with the reliability PAC-3 is known for, while providing magazine depth the current global climate necessitates. Rapid fielding: Uses highly effective and battle-proven PAC-3 software and IBCS integration to shorten development cycles and achieve rapid initial production. Multi-threat coverage: Designed to counter airbreathing threats, cruise missiles, close-range and short-range ballistic missiles within a single platform. Allied resilience: Joint development and production with European partners creates a shared, interoperable interceptor that strengthens transatlantic defense posture. EXPERT PERSPECTIVE
"American and allied warfighters need a solution that is battle-tested and budget-smart, and PAC-3 ACE delivers exactly that by building on the unrivaled performance of the PAC-3 MSE," said Tim Cahill, president, Lockheed Martin Missiles and Fire Control. "As we look to partner with our allies, we can further enhance resiliency and ensure our forces can swiftly counter emerging threats today and tomorrow."

About Lockheed Martin
Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at Lockheedmartin.com.

SOURCE Lockheed Martin

Key Takeaways Lockheed Martin signed U.S. agreements to expand Patriot PAC-3, THAAD and PrSM production capacity.LMT expects these agreements to lift production rates by roughly three to four times over the coming years.Lockheed Martin's Missiles and Fire Control sales rose 8.2% on higher missile defense production. Lockheed Martin (LMT - Free Report) appears well positioned to benefit from one of the fastest-growing areas of global defense spending — air and missile defense. With a broad portfolio spanning Patriot PAC-3 interceptors, THAAD, Precision Strike Missile (PrSM) and other advanced missile systems, Lockheed Martin is positioned to capitalize on the long-term modernization cycle.

During the first quarter of 2026, the company signed several long-term framework agreements with the U.S. government to accelerate production of Patriot PAC-3, THAAD and PrSM systems. These agreements provide greater demand visibility and are expected to support investments in production facilities, supplier capacity and workforce expansion. Management expects these initiatives to drive a threefold to fourfold increase in production rates over the coming years.

Lockheed Martin’s Missiles and Fire Control business reported an 8.2% year-over-year increase in sales, driven primarily by higher production on integrated air and missile defense programs, including PAC-3, as well as tactical missile programs such as JASSM, LRASM and PrSM. The growth demonstrates that increasing customer demand is already translating into stronger operating performance.

The broader defense spending environment also remains supportive. The United States and allied nations continue prioritizing integrated air and missile defense as a core national security objective. Increased investments in layered defense architectures, precision strike capabilities and advanced interceptors are expected to remain a key component of defense budgets for years to come. These structural trends could support sustained demand across Lockheed Martin's missile portfolio.

Defense Companies Benefiting From Rising Missile DemandAlong with Lockheed Martin, several other defense companies are also positioned to benefit from growing investments in missile defense and precision weapons, as discussed below:

RTX Corporation (RTX - Free Report) continues to benefit through its role in the Patriot air and missile defense system and its expanding portfolio of advanced missile technologies.

Northrop Grumman (NOC - Free Report) is strengthening its position through missile defense sensors, strategic deterrence programs and next-generation hypersonic technologies.

LMT Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year improvement of 29.5% and 8.02%, respectively.

Image Source: Zacks Investment Research

LMT Stock Trades at a DiscountIn terms of valuation, LMT’s forward 12-month price-to-sales (P/S) is 1.47X, a discount to the industry’s average of 2.54X.

Image Source: Zacks Investment Research

LMT Stock’s Price PerformanceIn the past six months, the company’s shares have lost 11.8% compared with the industry’s 11.4% decline.

Image Source: Zacks Investment Research

LMT’s Zacks RankThe company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Wall Street expects flat earnings compared to the year-ago quarter on higher revenues when Lockheed Martin (LMT - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on July 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis aerospace and defense company is expected to post quarterly earnings of $7.29 per share in its upcoming report, which represents no change from the year-ago quarter.

Revenues are expected to be $19.52 billion, up 7.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.79% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Lockheed?For Lockheed, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.74%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that Lockheed will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Lockheed would post earnings of $6.67 per share when it actually produced earnings of $6.44, delivering a surprise of -3.45%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Lockheed doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerNorthrop Grumman (NOC - Free Report) , another stock in the Zacks Aerospace - Defense industry, is expected to report earnings per share of $6.84 for the quarter ended June 2026. This estimate points to a year-over-year change of -3.8%. Revenues for the quarter are expected to be $10.78 billion, up 4.1% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Northrop Grumman has remained unchanged. Nevertheless, the company now has an Earnings ESP of +0.22%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Northrop Grumman will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.