Lockheed Martin (NYSE:LMT) Stock Price Up 2.5% on Better-Than-Expected Earnings

Key Points

• Lockheed Martin shares rose 2.5% after the company posted better-than-expected quarterly results, with EPS of $7.94 versus $7.22 expected and revenue of $20.06 billion versus $19.34 billion expected.
• The company raised its FY 2026 guidance and said demand remains strong, supported by expanded munitions production and a record $230 billion backlog that includes a major THAAD interceptor contract.
• Lockheed also announced a quarterly dividend of $3.45 per share, equal to $13.80 annualized and a 2.4% yield, reinforcing its appeal to income-focused investors.

Lockheed Martin Corporation (NYSE:LMT - Get Free Report)'s stock price traded up 2.5% on Friday following a better than expected earnings announcement. The stock traded as high as $588.41 and last traded at $582.73. 1,735,454 shares traded hands during trading, an increase of 10% from the average session volume of 1,573,588 shares. The stock had previously closed at $568.59.

The aerospace company reported $7.94 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.22 by $0.72. Lockheed Martin had a return on equity of 101.64% and a net margin of 6.38%.The company had revenue of $20.06 billion for the quarter, compared to analyst estimates of $19.34 billion. During the same quarter last year, the company posted $1.46 EPS. The company's revenue for the quarter was up 10.5% compared to the same quarter last year. Lockheed Martin has set its FY 2026 guidance at 29.950-30.650 EPS.

Lockheed Martin Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Tuesday, September 1st will be given a $3.45 dividend. 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 payout ratio is currently 50.87%.

Key Stories 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 $7.22 expected and revenue of $20.06 billion versus $19.34 billion expected, showing broad-based operational improvement.
• Positive Sentiment: The company raised 2026 guidance for sales and earnings, with management pointing to continued munitions production expansion and stronger demand across its defense businesses.
• Positive Sentiment: Lockheed ended the quarter with a record $230 billion backlog, including a major THAAD interceptor contract, signaling years of revenue visibility and supporting the bullish investor reaction. Article: Lockheed Martin Says Record Backlog Will Fuel Sales Growth 'for Years to Come'
• Positive Sentiment: Several reports highlighted that defense spending and geopolitical tensions are boosting the entire sector, helping defense names like LMT outperform the broader market.
• Neutral Sentiment: Analyst commentary says execution remains important, so investors will be watching whether Lockheed can sustain this improved performance in coming quarters.

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. Weiss Ratings cut shares of Lockheed Martin from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, July 17th. TD Cowen decreased their price target on shares of Lockheed Martin from $600.00 to $560.00 and set a "hold" rating on the stock in a report on Monday, July 13th. Susquehanna lowered their price objective on shares of Lockheed Martin from $740.00 to $700.00 and set a "positive" rating for the company in a research report on Friday, April 24th. DZ Bank raised shares of Lockheed Martin from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 30th. Finally, Robert W. Baird set a $700.00 target price on shares of Lockheed Martin in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $624.94.

Institutional Investors Weigh In On Lockheed Martin

Institutional investors and hedge funds have recently made changes to their positions in the stock. Basso Capital Management L.P. bought a new stake in Lockheed Martin in the fourth quarter valued at approximately $25,000. United Financial Planning Group LLC acquired a new position in shares of Lockheed Martin in the 3rd quarter worth approximately $25,000. Clarity Asset Management Inc. acquired a new position in shares of Lockheed Martin in the 4th quarter worth approximately $26,000. Triumph Capital Management boosted its stake in shares of Lockheed Martin by 66.7% in the 4th quarter. Triumph Capital Management now owns 55 shares of the aerospace company's stock valued at $26,000 after purchasing an additional 22 shares during the last quarter. Finally, Bard Associates Inc. bought a new stake in shares of Lockheed Martin in the 4th quarter valued at $27,000. Institutional investors and hedge funds own 74.19% of the company's stock.

Lockheed Martin Stock Performance

The company has a debt-to-equity ratio of 2.74, a current ratio of 1.14 and a quick ratio of 0.94. The company's 50-day moving average price is $522.45 and its two-hundred day moving average price is $573.14. The company has a market capitalization of $134.36 billion, a price-to-earnings ratio of 28.22, a PEG ratio of 0.92 and a beta of 0.11.

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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