Lockheed Martin (NYSE:LMT) Posts Earnings Results, Beats Estimates By $0.75 EPS

Key Points

• Lockheed Martin beat quarterly expectations with EPS of $7.94 versus the $7.19 estimate and revenue of $20.06 billion versus $19.34 billion expected. Revenue rose 10.5% year over year, and the company raised its FY 2026 guidance.
• The company highlighted a record $230 billion backlog and about $2.9 billion in free cash flow, supported by strong demand for missiles and air defense systems. Major awards included a $35 billion THAAD contract and a $3 billion GMLRS award.
• Shares jumped after the report as investors responded to the beat-and-raise outlook and long-term defense demand. Lockheed also announced a quarterly dividend of $3.45 per share, or $13.80 annually, for a 2.4% yield.

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, beating analysts' consensus estimates of $7.19 by $0.75, Zacks reports. The business had revenue of $20.06 billion for the quarter, compared to analysts' expectations of $19.34 billion. Lockheed Martin had a net margin of 6.38% and a return on equity of 101.64%. The firm's revenue for the quarter was up 10.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $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 Price Performance

Shares of Lockheed Martin stock traded up $57.57 during trading on Thursday, reaching $571.93. 1,560,212 shares of the company's stock were exchanged, compared to its average volume of 1,560,616. The company has a market cap of $131.86 billion, a P/E ratio of 27.71, a PEG ratio of 0.91 and a beta of 0.11. The company has a debt-to-equity ratio of 2.74, a quick ratio of 0.94 and a current ratio of 1.14. The firm's 50-day moving average price is $521.47 and its 200 day moving average price is $572.63. Lockheed Martin has a 1-year low of $412.55 and a 1-year high of $692.00.

Lockheed Martin Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Tuesday, September 1st will be paid a dividend of $3.45 per share. This represents a $13.80 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Tuesday, September 1st. Lockheed Martin's dividend payout ratio is presently 66.83%.

Key Headlines Impacting Lockheed Martin

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 bought and sold shares of the company. Charles Schwab Investment Management Inc. increased its position in shares of 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 valued at $4,178,399,000 after purchasing an additional 114,900 shares during the last quarter. Morgan Stanley raised its stake in shares of Lockheed Martin by 10.1% during the fourth quarter. Morgan Stanley now owns 5,728,551 shares of the aerospace company's stock valued at $2,770,729,000 after acquiring an additional 527,523 shares during the last quarter. AQR Capital Management LLC raised its stake in Lockheed Martin by 107.3% in the fourth quarter. AQR Capital Management LLC now owns 1,293,823 shares of the aerospace company's stock worth $625,784,000 after buying an additional 669,604 shares in the last quarter. Ameriprise Financial Inc. raised its stake in Lockheed Martin by 16.6% during the second quarter. Ameriprise Financial Inc. now owns 761,382 shares of the aerospace company's stock valued at $347,381,000 after buying an additional 108,553 shares during the last quarter. Finally, Raymond James Financial Inc. increased its holdings in shares of Lockheed Martin by 2.3% in the 3rd 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 own 74.19% of the company's stock.

Analyst Upgrades and Downgrades

LMT has been the topic of several recent analyst reports. JPMorgan Chase & Co. decreased their price target on Lockheed Martin from $680.00 to $605.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 5th. Deutsche Bank Aktiengesellschaft reduced their price target on shares of Lockheed Martin from $615.00 to $575.00 and set a "hold" rating on the stock in a research report on Friday, April 24th. Citigroup upgraded shares of Lockheed Martin from a "neutral" rating to a "buy" rating and boosted their price objective for the stock from $571.00 to $582.00 in a research report on Wednesday, July 1st. Bank of America lowered their price target on Lockheed Martin from $660.00 to $600.00 and set a "neutral" rating for the company in a research note on Friday, April 24th. Finally, Jefferies Financial Group set a $575.00 price objective 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 given a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $615.78.

Lockheed Martin Company Profile

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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