July 23, 2026

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Lockheed Martin Corporation (NYSE: LMT) reported second-quarter 2026 results above expectations, supported by higher sales, stronger earnings, record backlog, strong free cash flow, and increased full-year guidance.
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Lockheed Martin is a global defense technology company that provides aircraft, missile defense systems, space systems, helicopters, command and control systems, sensors, and advanced security technologies to U.S. and allied government customers.
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The company reported diluted EPS of $7.94, above estimates of $7.22, representing a 10.0% earnings surprise. Sales came in at $20.06 billion, above estimates of $19.52 billion, with sales growth of 10.5%.

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Results Beat Expectations

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Sales increased 11% year-over-year to $20.06 billion.
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Net earnings increased to $1.84 billion from $342 million in the prior-year quarter.
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Diluted EPS increased to $7.94 from $1.46 a year earlier.
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Cash from operations increased to $3.24 billion from $201 million.
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Free cash flow was $2.92 billion, compared with negative free cash flow of $150 million in the prior-year quarter.

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Backlog Reached a Record

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Lockheed Martin reported a record backlog of $230 billion.
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The backlog included a multi-year contract to produce THAAD interceptors.
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Management said the company booked $65 billion of new orders during the quarter.
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CEO Jim Taiclet said demand remains strong across national security programs and highlighted the company’s 21st Century Security strategy, partnerships, and operational execution.

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Segment Growth Was Broad

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Aeronautics sales increased 9% to $8.11 billion.
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Missiles and Fire Control sales increased 19% to $4.10 billion, helped by production ramps in PAC-3, THAAD, and Precision Strike Missile programs.
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Rotary and Mission Systems sales increased 9% to $4.35 billion.
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Space sales increased 6% to $3.50 billion, supported by higher strategic and missile defense program volume.
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Total business segment operating profit increased to $2.16 billion from $571 million a year earlier.

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Prior-Year Charges Affected Comparisons

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The strong year-over-year earnings growth was helped by easier comparisons from the prior-year quarter.
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Second-quarter 2025 results included $1.6 billion of program losses and $169 million of other charges.
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Those prior-year charges were tied mainly to a classified Aeronautics program and the Canadian Maritime Helicopter Program and Turkish Utility Helicopter Program in Rotary and Mission Systems.
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Even with that comparison benefit, Lockheed Martin also reported higher sales across all segments and stronger cash generation.

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Guidance Raised

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Lockheed Martin increased its full-year 2026 outlook.
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The company now expects sales of about $79.75 billion to $81.75 billion, up from its prior range of $77.50 billion to $80.00 billion.
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Business segment operating profit is now expected to range from about $8.50 billion to $8.70 billion.
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Diluted EPS is now expected to range from about $29.95 to $30.65, up from the prior range of $29.35 to $30.25.
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Free cash flow is now expected to range from about $7.0 billion to $7.2 billion, up from the prior range of $6.5 billion to $6.8 billion.

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The Bigger Picture

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Lockheed Martin delivered a strong defense earnings report.
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Sales beat expectations, EPS came in above estimates, free cash flow improved sharply, and backlog reached a record $230 billion. The company also raised full-year sales, EPS, and free cash flow guidance, pointing to stronger demand and better execution across defense programs.
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The key question is whether Lockheed can keep converting record orders into revenue and profit while managing production ramps, complex defense programs, and government budget risk.
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