Lockheed Martin (NYSE:LMT) Stock Price Down 3.1% on Disappointing Earnings

Key Points

• Lockheed Martin shares fell 3.1% after Q1 results missed expectations—EPS $6.44 vs. $6.79 expected and revenue $18.02B vs. $18.38B—with free cash flow swinging negative and production/cost pressures weighing on margins.
• Management reaffirmed FY‑2026 guidance (EPS range 29.35–30.25) and the company has near‑term revenue supports from wins like Peru’s F‑16 order and proposed higher F‑35 buys plus missile‑defense work.
• Lockheed paid a quarterly dividend of $3.45 (annualized $13.80, yield ~2.7%), while analysts remain mixed—consensus rating “Hold” with a $632.32 price target amid several recent target adjustments.

Lockheed Martin Corporation (NYSE:LMT - Get Free Report)'s stock price dropped 3.1% during mid-day trading on Friday following a weaker than expected earnings announcement. The company traded as low as $503.60 and last traded at $513.2110. Approximately 3,080,110 shares changed hands during trading, an increase of 73% from the average daily volume of 1,779,116 shares. The stock had previously closed at $529.79.

The aerospace company reported $6.44 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $6.79 by ($0.35). Lockheed Martin had a return on equity of 108.53% and a net margin of 6.69%.The business had revenue of $18.02 billion during the quarter, compared to the consensus estimate of $18.38 billion. During the same period in the prior year, the business earned $7.28 EPS. The business's revenue was up .3% on a year-over-year basis. Lockheed Martin has set its FY 2026 guidance at 29.350-30.250 EPS.

Lockheed Martin Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, March 27th. Shareholders of record on Monday, March 2nd were issued a $3.45 dividend. The ex-dividend date of this dividend was Monday, March 2nd. This represents a $13.80 dividend on an annualized basis and a yield of 2.7%. Lockheed Martin's dividend payout ratio (DPR) is currently 64.22%.

Lockheed Martin News Summary

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

• Positive Sentiment: Peru agreed to buy 12 F‑16 Block 70 jets, adding near‑term international revenue and backlog visibility for Lockheed’s fighter business. Peru Selects Lockheed Martin F-16 Block 70
• Positive Sentiment: The Pentagon is proposing materially higher F‑35 buys for the Air Force, Navy and Marines over the next five years, which would lift program volumes and support long‑term revenue for Lockheed. Pentagon Plans Boost to F-35 Orders
• Positive Sentiment: U.S. missile‑defense activity is ramping (reported shortages of Patriots and new programs like “Golden Dome”), and Lockheed won work on defense/missile contracts — a tailwind for its missile and munitions franchises. Golden Dome Missile Defense Program
• Neutral Sentiment: Lockheed reaffirmed FY‑2026 guidance (EPS range ~29.35–30.25 and revenue range that roughly brackets consensus), which gives a roadmap but didn’t offset the quarter’s miss. Q1 2026 Financial Results
• Negative Sentiment: Q1 earnings missed estimates: EPS $6.44 vs. street expectations, revenue slightly below forecasts, and free cash flow swung negative — these operational misses are the primary near‑term catalyst for selling pressure. Lockheed Martin Posts Lower Quarterly Profit
• Negative Sentiment: Production slowdowns and cost pressure on fixed‑price programs (F‑16, C‑130, software/readiness headwinds on F‑35) reduced margins and cash generation this quarter, raising short‑term execution risk. Q1 Earnings Miss on F-16, C-130 Delays
• Negative Sentiment: Several brokers trimmed price targets (BNP Paribas, RBC, Morgan Stanley, Deutsche Bank and others), increasing near‑term selling pressure and reducing analyst support. BNP Paribas Adjusts PT on Lockheed Martin

Analyst Ratings Changes

LMT has been the topic of a number of recent research reports. UBS Group raised their target price on shares of Lockheed Martin from $580.00 to $663.00 and gave the stock a "neutral" rating in a report on Monday, February 2nd. Morgan Stanley cut their price objective on shares of Lockheed Martin from $675.00 to $653.00 and set an "equal weight" rating on the stock in a research report on Friday. TD Cowen lifted their price objective on shares of Lockheed Martin from $600.00 to $670.00 and gave the company a "hold" rating in a research report on Friday, January 30th. Truist Financial lifted their price objective on shares of Lockheed Martin from $605.00 to $695.00 and gave the company a "buy" rating in a research report on Friday, January 30th. Finally, Jefferies Financial Group lifted their price objective on shares of Lockheed Martin from $630.00 to $640.00 and gave the company a "hold" rating in a research report on Tuesday, April 7th. Seven research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $632.32.

Institutional Trading of Lockheed Martin

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Secured Retirement Advisors LLC raised its position in shares of Lockheed Martin by 2.6% during the 1st quarter. Secured Retirement Advisors LLC now owns 3,209 shares of the aerospace company's stock worth $1,940,000 after buying an additional 81 shares in the last quarter. Vertrix Wealth Management LLC bought a new stake in shares of Lockheed Martin during the 1st quarter worth about $4,924,000. IFM Investors Pty Ltd raised its position in shares of Lockheed Martin by 5.5% during the 1st quarter. IFM Investors Pty Ltd now owns 16,912 shares of the aerospace company's stock worth $10,221,000 after buying an additional 880 shares in the last quarter. Rexford Capital Inc. raised its position in shares of Lockheed Martin by 5.1% during the 1st quarter. Rexford Capital Inc. now owns 1,345 shares of the aerospace company's stock worth $813,000 after buying an additional 65 shares in the last quarter. Finally, Severin Investments LLC bought a new stake in shares of Lockheed Martin during the 1st quarter worth about $603,000. 74.19% of the stock is currently owned by institutional investors.

Lockheed Martin Price Performance

The company has a market capitalization of $118.27 billion, a P/E ratio of 23.88, a P/E/G ratio of 0.99 and a beta of 0.23. The business's 50-day simple moving average is $631.13 and its 200 day simple moving average is $552.93. The company has a current ratio of 1.09, a quick ratio of 0.94 and a debt-to-equity ratio of 3.05.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.