Lockheed Martin (NYSE:LMT – Get Free Report) posted its earnings results on Thursday. The aerospace company reported $7.94 earnings per share for the quarter, topping analysts’ consensus estimates of $7.19 by $0.75, Zacks reports. The company had revenue of $20.06 billion during the quarter, compared to analyst estimates of $19.34 billion. Lockheed Martin had a return on equity of 101.64% and a net margin of 6.38%.Lockheed Martin’s revenue was up 10.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.46 earnings per share. Lockheed Martin updated its FY 2026 guidance to 29.950-30.650 EPS.
Here are the key takeaways from Lockheed Martin’s conference call:
- Lockheed Martin delivered a very strong quarter, with record backlog of $230 billion, about $2.9 billion in free cash flow, and 11% sales growth to $20.1 billion. Management said performance was strong enough to raise full-year 2026 guidance across sales, profit, EPS, cash flow, and capex.
- Demand for missiles and air defense remained exceptionally strong, highlighted by major awards including a $35 billion THAAD contract, a $3 billion GMLRS award, and a HIMARS deal worth up to $1.1 billion. The company said these programs are driving broad munitions capacity expansion and support long-term growth.
- Lockheed emphasized continued momentum in advanced defense technologies, including Golden Dome, hypersonics, directed energy lasers, and counter-drone systems such as Sanctum and MORFIUS. Management argued the company is increasingly able to prototype and field new capabilities quickly by combining existing systems in new ways.
- The company said its growth is broad-based across the portfolio, with improved outlooks for Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. However, Space profit guidance was lowered because of reduced ULA equity earnings tied to the Vulcan launch anomaly investigation.
- Management stressed that it is investing ahead of demand, including new factories, automation, AI-enabled manufacturing, and international co-production partnerships. It also pointed to continued capital deployment and the pending Ultra Maritime acquisition as signs it can fund growth while still returning cash to shareholders.
Lockheed Martin Trading Up 11.2%
Shares of NYSE:LMT traded up $57.57 during midday trading on Thursday, reaching $571.93. The company’s stock had a trading volume of 1,560,212 shares, compared to its average volume of 1,560,616. The business has a 50 day moving average price of $521.47 and a 200 day moving average price of $572.63. Lockheed Martin has a 1 year low of $412.55 and a 1 year high of $692.00. The firm has a market cap of $131.86 billion, a price-to-earnings ratio of 27.71, a price-to-earnings-growth ratio of 0.91 and a beta of 0.11. The company has a quick ratio of 0.94, a current ratio of 1.14 and a debt-to-equity ratio of 2.74.
Lockheed Martin Dividend Announcement
More Lockheed Martin News
Here are the key news stories impacting Lockheed Martin this week:
- Positive Sentiment: Lockheed Martin beat Q2 expectations, reporting EPS of $7.94 versus estimates around $7.19 and revenue of $20.06 billion versus $19.34 billion expected, showing strong execution and demand. Lockheed Martin Reports Second Quarter 2026 Financial Results
- Positive Sentiment: The company raised its 2026 outlook, with guidance now above consensus for both EPS and revenue, signaling management confidence in continued defense spending and production growth. Reuters article
- Positive Sentiment: Lockheed Martin disclosed a record $230 billion backlog, supported by large missile and interceptor orders, which points to durable future revenue visibility. Benzinga article
- Positive Sentiment: Broader defense-sector strength is also helping sentiment, with peers like RTX moving higher on similar beat-and-raise results, reinforcing the market’s view that defense spending is trending favorably. 247WallSt article
- Neutral Sentiment: Lockheed also unveiled its PAC-3 ACE interceptor and continues expanding missile production, which may support long-term growth but is more of a strategic update than an immediate catalyst. Yahoo Finance article
- Negative Sentiment: Some analysts trimmed price targets and fair-value estimates, which could temper enthusiasm if investors worry the recent rally has run ahead of valuation. Yahoo Finance article
Hedge Funds Weigh In On Lockheed Martin
A number of hedge funds have recently made changes to their positions in LMT. Charles Schwab Investment Management Inc. boosted its position in Lockheed Martin by 1.3% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 8,638,936 shares of the aerospace company’s stock worth $4,178,399,000 after purchasing an additional 114,900 shares during the period. Morgan Stanley lifted its holdings in Lockheed Martin by 10.1% in the 4th quarter. Morgan Stanley now owns 5,728,551 shares of the aerospace company’s stock worth $2,770,729,000 after buying an additional 527,523 shares in the last quarter. AQR Capital Management LLC grew its stake in Lockheed Martin by 107.3% during the 4th quarter. AQR Capital Management LLC now owns 1,293,823 shares of the aerospace company’s stock valued at $625,784,000 after purchasing an additional 669,604 shares in the last quarter. Ameriprise Financial Inc. increased its stake in shares of Lockheed Martin by 16.6% in the second quarter. Ameriprise Financial Inc. now owns 761,382 shares of the aerospace company’s stock worth $347,381,000 after buying an additional 108,553 shares during the last quarter. Finally, Raymond James Financial Inc. grew its stake in Lockheed Martin by 2.3% in the third quarter. Raymond James Financial Inc. now owns 618,673 shares of the aerospace company’s stock worth $308,847,000 after purchasing an additional 14,077 shares in the last quarter. Institutional investors and hedge funds own 74.19% of the company’s stock.
Analyst Upgrades and Downgrades
Several equities analysts recently weighed in on the company. Weiss Ratings lowered Lockheed Martin from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, July 17th. DZ Bank upgraded shares of Lockheed Martin from a “hold” rating to a “strong-buy” rating in a research note on Thursday, April 30th. UBS Group lowered their price target on shares of Lockheed Martin from $683.00 to $538.00 in a report on Tuesday, June 30th. Morgan Stanley dropped their target price on Lockheed Martin from $675.00 to $653.00 and set an “equal weight” rating on the stock in a report on Friday, April 24th. Finally, Jefferies Financial Group set a $575.00 target price on Lockheed Martin in a research report on Thursday, June 25th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Lockheed Martin presently has an average rating of “Hold” and an average target price of $615.78.
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About Lockheed Martin
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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