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

Lockheed Martin (NYSE:LMT) posted its quarterly earnings data on Thursday. The aerospace company reported $7.97 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $7.52 by $0.45, Zacks reports. The company had revenue of $20.71 billion during the quarter, compared to analysts’ expectations of $20.48 billion. Lockheed Martin had a return on equity of 91.42% and a net margin of 8.16%. Lockheed Martin’s revenue was up 11.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $6.95 EPS.

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 Lockheed Martin stock opened at $588.64 on Friday. The firm’s 50 day simple moving average is $538.59 and its two-hundred day simple moving average is $541.86. The firm has a market capitalization of $135.85 billion, a price-to-earnings ratio of 21.70, a PEG ratio of 1.19 and a beta of 0.09. Lockheed Martin has a 12-month low of $437.25 and a 12-month high of $692.00. The company has a current ratio of 1.19, a quick ratio of 1.01 and a debt-to-equity ratio of 2.34.

Lockheed Martin Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 1st will be paid a $3.60 dividend. This is a boost from Lockheed Martin’s previous quarterly dividend of $3.45. The ex-dividend date is Tuesday, December 1st. This represents a $14.40 dividend on an annualized basis and a yield of 2.4%. Lockheed Martin’s dividend payout ratio (DPR) is 50.87%.

Key Headlines Impacting Lockheed Martin

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

• Positive Sentiment: Q3 earnings and revenue topped expectations. Lockheed reported adjusted earnings of $7.97 per share versus the $7.52 consensus estimate, while sales rose 11.3% year over year to $20.71 billion, exceeding expectations of approximately $20.48 billion. Net earnings increased 14% to $1.85 billion. Lockheed Martin Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Management raised its full-year forecast. Lockheed now expects 2026 sales of about $80 billion to $82 billion and diluted EPS of approximately $30.35 to $30.75, signaling confidence that production growth and strong defense demand will continue. Lockheed lifts annual forecast as missile, jet production ramps up
• Positive Sentiment: Record backlog provides substantial revenue visibility. Total backlog reached nearly $292 billion, including $52.5 billion tied to a multiyear PAC-3 Missile Segment Enhancement award. All four operating segments posted annual sales growth, led by a 24% increase in Missiles and Fire Control. Lockheed Martin Draws Attention With Record Backlog
• Positive Sentiment: A 10-year agreement for 850 F-35 jets strengthens future demand. The Pentagon commitment offers greater production certainty, while Lockheed plans to invest $7 billion in projects supporting the aircraft program. Rising orders for F-35s and Patriot missiles were major catalysts for investor optimism. Lockheed and Pentagon strike initial deal to produce 850 F-35 jets
• Neutral Sentiment: Cash generation was solid, with $3.4 billion in operating cash flow and $3.0 billion in free cash flow. However, the stock is trading well above its 50-day and 200-day moving averages after the rally, which could increase sensitivity to profit-taking or future guidance disappointments.
• Negative Sentiment: Some insider and congressional trading data showed selling rather than buying. This is not directly tied to the quarterly results, but it may act as a minor sentiment headwind after the sharp advance. Lockheed Martin Q3 Sales Rise 11% to $20.7 Billion

Wall Street Analysts Forecast Growth

LMT has been the topic of several research analyst reports. Vertical Research raised Lockheed Martin from a “hold” rating to a “buy” rating and set a $600.00 price objective on the stock in a research note on Wednesday, October 14th. Barclays initiated coverage on Lockheed Martin in a research report on Friday, October 9th. They set an “equal weight” rating and a $554.00 price target on the stock. Wall Street Zen cut shares of Lockheed Martin from a “strong-buy” rating to a “buy” rating in a research report on Saturday, October 17th. Wells Fargo & Company set a $600.00 price objective on shares of Lockheed Martin in a research note on Monday, July 27th. Finally, Rothschild & Co Redburn initiated coverage on shares of Lockheed Martin in a report on Tuesday, October 6th. They set a “buy” rating and a $650.00 price objective on the stock. One 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 stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $627.10.

Lockheed Martin Company Profile

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.