Lockheed Martin (NYSE:LMT) Posts Earnings Results, Beats Expectations By $0.45 EPS

22 Oct 2026, 15:41 by Danessa Lincoln · The Markets Daily

Lockheed Martin (NYSE:LMT – Get Free Report) posted its earnings results on Thursday. The aerospace company reported $7.97 earnings per share for the quarter, topping analysts’ consensus estimates of $7.52 by $0.45, Zacks reports. Lockheed Martin had a net margin of 8.16% and a return on equity of 91.42%. During the same period in the prior year, the firm posted $6.95 EPS. The business’s revenue was up 11.3% on a year-over-year basis.

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 Trading Up 6.7%

Shares of NYSE LMT traded up $36.86 during midday trading on Thursday, hitting $588.37. The company’s stock had a trading volume of 1,299,579 shares, compared to its average volume of 1,440,507. The company has a current ratio of 1.19, a quick ratio of 1.01 and a debt-to-equity ratio of 2.34. The business’s 50 day moving average is $538.78 and its two-hundred day moving average is $542.10. Lockheed Martin has a 12-month low of $437.25 and a 12-month high of $692.00. The firm has a market cap of $135.79 billion, a P/E ratio of 21.67, a price-to-earnings-growth ratio of 1.18 and a beta of 0.09.

Lockheed Martin Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 1st will be paid a dividend of $3.60 per share. 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%. The ex-dividend date of this dividend is Tuesday, December 1st. Lockheed Martin’s payout ratio is currently 50.87%.

Analyst Ratings Changes

Several brokerages have weighed in on LMT. Robert W. Baird set a $700.00 price objective on Lockheed Martin in a research note on Friday, July 24th. Vertical Research upgraded Lockheed Martin from a “hold” rating to a “buy” rating and set a $600.00 target price for the company in a report on Wednesday, October 14th. Wells Fargo & Company set a $600.00 target price on Lockheed Martin in a research report on Monday, July 27th. Barclays began coverage on Lockheed Martin in a research report on Friday, October 9th. They set an “equal weight” rating and a $554.00 target price on the stock. Finally, Royal Bank Of Canada decreased their price target on Lockheed Martin from $600.00 to $550.00 and set a “sector perform” rating on the stock in a report on Thursday, October 15th. One investment 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 issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $627.10.

Read Our Latest Research Report on Lockheed Martin

Lockheed Martin News Summary

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.

Lockheed Martin Company Profile

(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.