Lockheed Martin Corp
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.43%.
Did LMT Beat Earnings? Q2 2026 Results
Lockheed Martin delivered a robust second quarter in 2026, posting earnings per share of $7.94 against a consensus estimate of $7.20, a beat of 10.29%, while revenue of $20.06 billion topped estimates by 3.80% and grew 10.5% year over year. The dramatic swing in profitability, with net earnings reaching $1.84 billion compared to $342 million a year ago, was largely driven by the absence of $1.60 billion in prior-year reach-forward program losses that had weighed heavily on Aeronautics and Rotary and Mission Systems. Missiles and Fire Control stood out as the clearest growth engine, with production ramps on PAC-3, THAAD, and Precision Strike Missile fueling a 19% sales increase in the segment. A $35 billion multi-year THAAD interceptor contract helped push the company's backlog to a record $230.42 billion, reinforcing the demand picture at a time when peer defense contractors are similarly reporting expanded backlogs on global rearmament spending. Management raised full-year 2026 sales guidance to a range of $79.75 billion to $81.75 billion and lifted EPS guidance to $29.95 to $30.65, with free cash flow now expected to exceed $7 billion.
- 11% sales growth driven by increased volume and munitions production ramps across all segments
- $65 billion in new orders driving record backlog of $230 billion
- F-35 production contract volume increase contributing $475 million in higher Aeronautics sales
- PAC-3 and THAAD production ramps driving $560 million sales increase in Missiles and Fire Control
- Absence of $1.6 billion in prior-year reach-forward losses significantly boosting operating profit
- Lower effective tax rate of 15.7% vs 18.0% due to CAMT relief and other tax benefits
- Timing of customer receipts and lower tax payments driving $3.0 billion improvement in cash flows
“We delivered strong second‑quarter performance, with over $20 billion in sales – a year‑over‑year increase of 11% – free cash flow of $2.9 billion, and $65 billion of new orders, which takes our backlog to a record $230 billion. This continued performance reflects more than just increased customer demand – it is evidence that our 21st Century Security strategy, and its focus on integration, partnerships and operational excellence is working, resulting in increased business, and advancing the security needs of our nation and allies. We are delivering on our strategy, achieving a higher trajectory for our business and giving us confidence to raise our full year financial guidance. We now anticipate accelerated year‑over‑year sales growth of approximately 8%, driving 28% higher segment operating profit, and increased free cash flow, now projected to be over $7 billion”
Lockheed Martin CEO, on the earnings call
Forward Guidance & Outlook
Lockheed Martin raised its full-year 2026 financial outlook. Sales are now expected to be approximately $79,750 million to $81,750 million (up from $77,500 to $80,000 million). Business segment operating profit is projected at approximately $8,500 to $8,700 million (up from $8,425 to $8,675 million). Diluted EPS guidance was raised to approximately $29.95 to $30.65 (from $29.35 to $30.25). Cash from operations is now expected at approximately $9,200 to $9,400 million, with capital expenditures reduced to approximately $2,000 to $2,400 million (from $2,500 to $2,800 million), resulting in free cash flow of approximately $7,000 to $7,200 million (up from $6,500 to $6,800 million). The company anticipates approximately 8% year-over-year sales growth and 28% higher segment operating profit. The outlook does not incorporate the proposed acquisition of Ultra Maritime.
LMT YoY Financials
LMT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.