European Investor
22 Oct 2026, 15:21
Lockheed Martin Jumps 6% as Q3 Sales, Earnings and Record Backlog Drive Guidance Raise
Lockheed Martin (NYSE: LMT) shares rose about 6% after the defense contractor reported stronger third-quarter 2026 sales and earnings, record backlog and another increase to its full-year financial outlook.
Third-quarter sales increased 11% year over year to $20.7 billion, while net earnings rose 14% to $1.85 billion. Diluted EPS climbed to $7.97 from $6.95 a year earlier. All four business segments posted revenue growth during the quarter.
Backlog surged 27% from the second quarter to a record $292.0 billion, including $52.5 billion tied to the multi-year PAC-3 Missile Segment Enhancement contract. The backlog expansion materially improves revenue visibility and highlights sustained demand for missile defense and other major defense programs.
Missiles and Fire Control was particularly strong, with revenue rising 24% to $4.50 billion and operating profit increasing 24% to $631 million. Growth was driven by production ramps across PAC-3, THAAD, GMLRS and Precision Strike Missile programs.
Aeronautics revenue increased 13% to $8.21 billion, mainly due to higher F-35 production and sustainment activity, while Rotary and Mission Systems and Space also posted revenue growth.
Lockheed raised its 2026 sales outlook to approximately $80 billion-$82 billion from $79.75 billion-$81.75 billion. EPS guidance increased to about $30.35-$30.75, while free cash flow guidance was lifted substantially to $7.8 billion-$8.0 billion from $7.0 billion-$7.2 billion.
Free cash flow for the quarter was $3.0 billion, down from $3.35 billion a year earlier, largely because the prior-year period benefited from higher customer receipts.
The 6% gain appears to reflect the combination of double-digit earnings growth, accelerating missile-defense production, a record $292 billion backlog and the second consecutive quarterly increase in full-year guidance.
Lockheed Martin (NYSE: LMT) shares rose about 6% after the defense contractor reported stronger third-quarter 2026 sales and earnings, record backlog and another increase to its full-year financial outlook.
Third-quarter sales increased 11% year over year to $20.7 billion, while net earnings rose 14% to $1.85 billion. Diluted EPS climbed to $7.97 from $6.95 a year earlier. All four business segments posted revenue growth during the quarter.
Backlog surged 27% from the second quarter to a record $292.0 billion, including $52.5 billion tied to the multi-year PAC-3 Missile Segment Enhancement contract. The backlog expansion materially improves revenue visibility and highlights sustained demand for missile defense and other major defense programs.
Missiles and Fire Control was particularly strong, with revenue rising 24% to $4.50 billion and operating profit increasing 24% to $631 million. Growth was driven by production ramps across PAC-3, THAAD, GMLRS and Precision Strike Missile programs.
Aeronautics revenue increased 13% to $8.21 billion, mainly due to higher F-35 production and sustainment activity, while Rotary and Mission Systems and Space also posted revenue growth.
Lockheed raised its 2026 sales outlook to approximately $80 billion-$82 billion from $79.75 billion-$81.75 billion. EPS guidance increased to about $30.35-$30.75, while free cash flow guidance was lifted substantially to $7.8 billion-$8.0 billion from $7.0 billion-$7.2 billion.
Free cash flow for the quarter was $3.0 billion, down from $3.35 billion a year earlier, largely because the prior-year period benefited from higher customer receipts.
The 6% gain appears to reflect the combination of double-digit earnings growth, accelerating missile-defense production, a record $292 billion backlog and the second consecutive quarterly increase in full-year guidance.
