Lockheed Martin (NYSE:LMT) Shares Gap Up on Earnings Beat

Posted by Brian Himes on Oct 22nd, 2026

Lockheed Martin Corporation (NYSE:LMT – Get Free Report) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $551.51, but opened at $579.51. Lockheed Martin shares last traded at $588.8430, with a volume of 803,560 shares trading hands.

The aerospace company reported $7.97 EPS for the quarter, topping the consensus estimate of $7.52 by $0.45. Lockheed Martin had a net margin of 8.16% and a return on equity of 91.42%. Lockheed Martin’s quarterly revenue was up 11.3% compared to the same quarter last year. During the same period in the previous year, the company posted $6.95 earnings per share.

Lockheed Martin Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 1st will be issued a dividend of $3.60 per share. This represents a $14.40 annualized dividend and a dividend yield of 2.4%. This is a positive change from Lockheed Martin’s previous quarterly dividend of $3.45. The ex-dividend date is Tuesday, December 1st. Lockheed Martin’s payout ratio is 50.87%.

Key Headlines Impacting Lockheed Martin

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.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on LMT. Barclays initiated coverage on Lockheed Martin in a research report on Friday, October 9th. They issued an “equal weight” rating and a $554.00 price objective for the company. Jefferies Financial Group reiterated a “hold” rating on shares of Lockheed Martin in a research report on Wednesday, September 2nd. Sanford C. Bernstein reduced their target price on Lockheed Martin from $629.00 to $564.00 and set a “market perform” rating on the stock in a research report on Wednesday, October 14th. Citigroup raised their price target on Lockheed Martin from $641.00 to $691.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Finally, Morgan Stanley lifted their price target on Lockheed Martin from $653.00 to $690.00 and gave the company an “equal weight” rating in a report on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $627.10.

Check Out Our Latest Report on Lockheed Martin

Hedge Funds Weigh In On Lockheed Martin

A number of large investors have recently bought and sold shares of the stock. Rooted Wealth Advisors Inc. grew its stake in shares of Lockheed Martin by 1.8% during the 1st quarter. Rooted Wealth Advisors Inc. now owns 1,036 shares of the aerospace company’s stock valued at $602,000 after buying an additional 18 shares during the period. Beacon Capital Management LLC increased its holdings in shares of Lockheed Martin by 4.5% during the 2nd quarter. Beacon Capital Management LLC now owns 442 shares of the aerospace company’s stock worth $225,000 after buying an additional 19 shares during the last quarter. YANKCOM Partnership raised its position in shares of Lockheed Martin by 0.7% in the 3rd quarter. YANKCOM Partnership now owns 2,575 shares of the aerospace company’s stock worth $1,311,000 after buying an additional 19 shares during the period. Capital Square LLC raised its position in shares of Lockheed Martin by 1.1% in the 3rd quarter. Capital Square LLC now owns 1,793 shares of the aerospace company’s stock worth $913,000 after buying an additional 19 shares during the period. Finally, Crossmark Global Holdings Inc. raised its position in shares of Lockheed Martin by 0.6% in the 3rd quarter. Crossmark Global Holdings Inc. now owns 3,239 shares of the aerospace company’s stock worth $1,649,000 after buying an additional 19 shares during the period. Hedge funds and other institutional investors own 74.19% of the company’s stock.

Lockheed Martin Stock Up 7.2%

The stock has a market cap of $136.49 billion, a price-to-earnings ratio of 21.80, a PEG ratio of 1.18 and a beta of 0.09. The company has a quick ratio of 1.01, a current ratio of 1.19 and a debt-to-equity ratio of 2.34. The stock has a fifty day moving average of $538.78 and a two-hundred day moving average of $542.10.

About Lockheed Martin

(Get Free Report)

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.