Lockheed Martin (NYSE:LMT) Issues Quarterly Earnings Results

Lockheed Martin (NYSE:LMT) released its earnings results on Thursday. The aerospace company reported $7.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.52 by $0.45, Zacks reports. The company had revenue of $20.71 billion for the quarter, compared to analysts’ expectations of $20.48 billion. Lockheed Martin had a return on equity of 83.41% and a net margin of 8.23%. The firm’s quarterly revenue was up 11.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $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 Price Performance

Shares of NYSE:LMT opened at $604.87 on Friday. The business’s 50 day simple moving average is $538.52 and its 200-day simple moving average is $542.30. The firm has a market capitalization of $139.60 billion, a price-to-earnings ratio of 21.49, a price-to-earnings-growth ratio of 1.27 and a beta of 0.09. The company has a debt-to-equity ratio of 2.04, a current ratio of 1.26 and a quick ratio of 1.01. Lockheed Martin has a 12 month low of $437.25 and a 12 month high of $692.00.

Lockheed Martin Increases Dividend

The company also recently declared 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. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $14.40 annualized dividend and a dividend yield of 2.4%. Lockheed Martin’s dividend payout ratio is presently 51.15%.

Trending Headlines about Lockheed Martin

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

• Positive Sentiment: Q3 beat and raised outlook: Lockheed reported adjusted EPS of $7.97 versus the $7.52 consensus, while revenue rose 11.3% year over year to $20.71 billion. Management now expects 2026 sales of $80 billion-$82 billion and EPS of $30.35-$30.75. Lockheed Martin Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Record backlog supports future revenue: Total backlog reached approximately $292 billion, up sharply from the prior quarter, with much of the increase coming from PAC-3 and THAAD missile-defense orders. Missiles and Fire Control sales grew 24% as production accelerated, strengthening visibility into long-term growth. Lockheed Martin’s Record $292 Billion Backlog Comes With a Delivery Test
• Positive Sentiment: Long-term F-35 commitment: The Pentagon and Lockheed announced an initial framework for producing 850 F-35 aircraft over 10 years. The agreement provides greater production visibility and could improve supply-chain efficiency, although Lockheed will invest about $7 billion in supporting projects. Pentagon, Lockheed announce agreement for 850 F-35 jets
• Positive Sentiment: Cash flow and shareholder returns: Lockheed raised its 2026 free-cash-flow outlook to roughly $7.8 billion-$8.0 billion and recently increased its quarterly dividend 4.4% to $3.60 per share. Lockheed Martin, Interactive Brokers, AEP Hike Dividends on Strong Growth
• Neutral Sentiment: Industry forecasts point to strong growth in defense electronics and land-based C4ISR, potentially expanding Lockheed Martin’s addressable market, but these reports are third-party projections rather than new company contracts.
• Negative Sentiment: Execution and funding risks remain: The backlog must be converted into deliveries and cash. F-35 deliveries fell year over year, and Lockheed said spending on the Lot 20 advance contract has exceeded currently authorized funding. Higher contract assets and supply-chain constraints could also delay cash collection or pressure margins. Lockheed is spending its own money before Washington signs off

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. Wall Street Zen cut Lockheed Martin from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 17th. Royal Bank Of Canada upped their price objective on Lockheed Martin from $550.00 to $600.00 and gave the stock a “sector perform” rating in a report on Friday. Wells Fargo & Company set a $600.00 price objective on Lockheed Martin in a research report on Monday, July 27th. TD Cowen reduced their target price on Lockheed Martin from $600.00 to $570.00 and set a “hold” rating for the company in a report on Friday, October 9th. Finally, Jefferies Financial Group reissued a “hold” rating on shares of Lockheed Martin in a report on Wednesday, September 2nd. One equities research 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.com, the company has an average rating of “Moderate Buy” and an average target price of $632.33.

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.