Lockheed Martin Q3 2026: Record $292B Backlog Drives Guidance Raise
As seen on the 24/7 Wall St. homepage on October 22, 2026.
A record $292 billion backlog now underwrites years of missile production and pushed management to raise full-year sales, EPS and free cash flow guidance for the second straight quarter. The offset: F-35 Lot 20 costs have started running past contractual authorization.
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Lockheed Martin's third-quarter 2026 GAAP earnings per share of $7.97 beat expectations, with all four business segments growing compared to the same period a year ago.
Missiles and Fire Control led the quarter on accelerating production of PAC-3, THAAD, and related munitions, while Aeronautics advanced on higher F-35 production and sustainment activity. A single multi-year PAC-3 MSE interceptor contract pushed total backlog to a record $292 billion, underwriting years of future production volume.
Management raised its full-year 2026 outlook for the second consecutive quarter across sales, diluted EPS, and free cash flow. CEO Jim Taiclet pointed to the record backlog and segment-wide growth as the basis for the raised targets, and the company announced its 24th consecutive annual dividend increase.
The clearest risk in the report centers on the F-35 program, where costs on Lot 20 have begun running past current contractual authorization and the company flagged that without additional U.S. Government funding those overruns will weigh on future results. Unfavorable profit adjustments on the F-16, C-130, Heavy Lift, and Seahawk programs were also absorbed in the quarter. How the Pentagon responds is the variable to track into the fourth quarter.
Mentioned: LMT