Lockheed Martin (NYSE:LMT – Get Free Report) released its quarterly earnings data on Thursday. The aerospace company reported $7.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.52 by $0.45, Zacks reports. Lockheed Martin had a return on equity of 91.42% and a net margin of 8.16%. Lockheed Martin’s revenue was up 11.3% on a year-over-year basis. During the same period in the previous year, the firm posted $6.95 EPS.
Here are the key takeaways from Lockheed Martin’s conference call:
- Positive Sentiment: Lockheed Martin reported strong third-quarter execution, with sales up 11% to $20.7 billion, EPS rising 15% to $7.97, and free cash flow reaching $3 billion.
- Positive Sentiment: Record backlog increased to $292 billion, supported by a four-times book-to-bill ratio and major multiyear awards for PAC-3, THAAD, F-35, C-130J, and other defense programs.
- Positive Sentiment: The company raised its 2026 outlook again, now forecasting $80 billion–$82 billion in sales, $8.575 billion–$8.675 billion in segment operating profit, and $7.8 billion–$8 billion in free cash flow; MFC is expected to grow sales and profit by about 20%.
- Positive Sentiment: Lockheed is accelerating investment in munitions capacity, suppliers, automation, autonomy, hypersonics, and missile defense, including more than $8 billion of planned investment through 2030, backed by long-term customer demand and contracts designed to preserve cash neutrality during the ramp.
- Negative Sentiment: Aeronautics’ 2026 outlook was trimmed slightly because the expected timing of the next F-35 production-lot award shifted into 2027; management also flagged a pension contribution of more than $1 billion as a potential 2027 cash-flow headwind.
Lockheed Martin Stock Performance
Shares of LMT traded up $36.90 on Thursday, reaching $588.41. The company’s stock had a trading volume of 1,240,872 shares, compared to its average volume of 1,440,093. The company has a debt-to-equity ratio of 2.34, a current ratio of 1.19 and a quick ratio of 1.01. The stock has a market capitalization of $135.80 billion, a P/E ratio of 21.69, a PEG ratio of 1.18 and a beta of 0.09. The stock’s 50 day simple moving average is $538.78 and its two-hundred day simple moving average is $542.10. Lockheed Martin has a 12-month low of $437.25 and a 12-month high of $692.00.
Lockheed Martin Increases Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 1st will be issued a $3.60 dividend. The ex-dividend date of this dividend is Tuesday, December 1st. This is a positive change from Lockheed Martin’s previous quarterly dividend of $3.45. This represents a $14.40 dividend on an annualized basis and a dividend yield of 2.4%. Lockheed Martin’s payout ratio is 50.87%.
Analyst Upgrades and Downgrades
A number of analysts have commented on LMT shares. Robert W. Baird set a $700.00 target price on Lockheed Martin in a report on Friday, July 24th. Wall Street Zen downgraded Lockheed Martin from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 17th. Weiss Ratings raised Lockheed Martin from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, October 9th. Vertical Research raised Lockheed Martin from a “hold” rating to a “buy” rating and set a $600.00 price objective on the stock in a research report on Wednesday, October 14th. Finally, UBS Group reiterated a “buy” rating and issued a $653.00 price objective on shares of Lockheed Martin in a report on Friday, October 16th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $627.10.
View Our Latest Research Report on LMT
Lockheed Martin News Roundup
Here are the key news stories impacting Lockheed Martin this week:
- Positive Sentiment: Quarterly results exceeded expectations. Third-quarter sales rose 11% year over year to $20.7 billion, while net earnings increased 14% to $1.85 billion, or $7.97 per share. EPS surpassed analyst estimates near $7.49–$7.52, and all four business segments posted sales growth, led by a 24% increase in Missiles and Fire Control. Lockheed Martin Beats Q3 Earnings and Revenue Estimates
- Positive Sentiment: Management raised its 2026 outlook. Lockheed now expects approximately $80.0 billion to $82.0 billion in sales and diluted EPS of $30.35 to $30.75, signaling confidence in production growth and program execution. Lockheed Lifts Annual Forecast
- Positive Sentiment: Record backlog supports long-term visibility. Total backlog reached approximately $292.0 billion, including $52.5 billion tied to the multiyear PAC-3 Missile Segment Enhancement interceptor award. The company also reported $3.4 billion in operating cash flow and $3.0 billion in free cash flow. Lockheed Martin Third Quarter 2026 Financial Results
- Positive Sentiment: F-35 production plans add another catalyst. Lockheed and the Pentagon reached an initial framework for producing 850 F-35 jets, potentially improving manufacturing scale, supply-chain efficiency and future program revenue. Lockheed and Pentagon F-35 Production Agreement
- Neutral Sentiment: Recent filings indicate insider and congressional selling of LMT shares, though these transactions appear less important to the immediate move than the earnings beat, raised guidance and record backlog.
About Lockheed Martin
Lockheed Martin Corporation is a global security and aerospace company headquartered in Bethesda, Maryland. Formed in 1995 through the merger of Lockheed Corporation and Martin Marietta, the company develops and produces advanced defense, aerospace, and technology systems for government and commercial customers.
Its principal business areas include Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. Products and services include military aircraft such as the F-35 Lightning II, C-130 Hercules, and F-16 Fighting Falcon; missile-defense and precision-strike systems; helicopters and naval systems; command, control, communications, and intelligence technologies; satellites; space exploration systems; and other classified space and defense programs.
Lockheed Martin serves the U.S.
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