Lockheed Martin Corporation (LMT) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Jan 28, 2027 — estimated from last year’s reporting date.

Consensus is $8.40 EPS for Dec 2026 across 6 estimates, ranging $8.20 to $8.65.

LMT Sep 2026

Reported Oct 22, 2026 · before the open

: 6.41%

: $7.49
: $7.97
: —
: $20.71B

Reported results

: $20.71B; from $18.61B
: 11.76%; from 12.04%
: $2.44B; from $2.28B
: 11.80%; from 12.25%
: $1.84B; from $1.62B
: $7.97; from $6.95

Highlights

Earnings beat: Q3 diluted EPS was $7.97, 6.4% above the $7.49 consensus and up 14.7% from $6.95 a year earlier.
Broad sales growth: Revenue rose 11.3% year over year to $20.71 billion, with all four segments growing; it was up from $20.06 billion in Q2.
Missiles led the expansion: Missiles and Fire Control sales increased 24% to $4.50 billion and operating profit rose 24% to $631 million, on production ramps across air-defense and tactical missile programs.
Record backlog: Backlog reached $292.0 billion, up $61.6 billion, or 27%, from Q2. The PAC-3 MSE multi-year award contributed $52.5 billion.
Outlook raised again: Lockheed lifted its 2026 sales range to $80–82 billion, EPS to $30.35–30.75 and free cash flow to $7.8–8.0 billion; it said this was the second consecutive quarterly guidance increase.
Cash remained substantial: Q3 free cash flow was $3.0 billion, down from $3.35 billion a year ago, while cash from operations was $3.44 billion versus $3.73 billion.
F-35 funding is a watch item: Costs on the Lot 20 advance-acquisition contract began exceeding current U.S. Government authorization and funding; Lockheed warned that failure to secure more could hurt future results and cash flows.

Analysis

Lockheed Martin delivered a broad-based growth quarter, with Q3 sales of $20.71 billion up 11.3% year over year and 3.2% sequentially. Diluted EPS of $7.97 beat the $7.49 consensus by 6.4%, compared with $6.95 in Q3 2025 and $7.94 in Q2 2026. Net earnings rose 14% year over year to $1.85 billion. Consolidated operating profit increased to $2.44 billion from $2.28 billion a year ago, although it was below Q2’s $2.48 billion; the consolidated operating margin was 11.8%, versus 12.3% a year ago.

The print was defined by accelerating weapons production, a sharp step-up in backlog and another upward revision to full-year guidance. Missiles and Fire Control grew fastest as PAC-3, THAAD, GMLRS and PrSM production ramped, while Aeronautics also benefited from F-35 volume. Backlog rose to a record $292.0 billion, including $52.5 billion from the PAC-3 MSE multi-year award. Management raised the 2026 EPS midpoint to $30.55 from $30.30 and the free-cash-flow midpoint to $7.9 billion from $7.1 billion. The strong orders and earnings came alongside lower year-over-year quarterly cash flow and a specific funding exposure on F-35 Lot 20.

Production and backlog

The strongest growth came from Missiles and Fire Control, where sales rose 24% to $4.50 billion and operating profit increased 24% to $631 million. Production ramps in PAC-3 and THAAD added about $480 million of sales, while GMLRS and PrSM added about $330 million. The resulting demand is also visible in backlog: it increased $61.6 billion during the quarter to a record $292.0 billion, driven primarily by the $52.5 billion PAC-3 MSE multi-year award. Lockheed expects to recognize about 23% of backlog as revenue over the next 12 months and 40% over the next 24 months.

Segment performance

Aeronautics: Sales grew 13% to $8.21 billion, led by $710 million of higher F-35 sales and $270 million on C-130. Operating profit rose 9% to $743 million, but margin eased to 9.0% from 9.4%; unfavorable F-16 and C-130 profit adjustments were a partial offset.
Missiles and Fire Control: Sales and operating profit each rose 24%, to $4.50 billion and $631 million, respectively. The 14.0% margin was nearly unchanged from 14.1%.
Rotary and Mission Systems: Sales increased 3% to $4.51 billion and profit rose 4% to $524 million. A $40 million favorable contracting resolution was partly offset by $45 million of unfavorable Heavy Lift and Seahawk adjustments.
Space: Sales grew 4% to $3.49 billion, including higher FBM and NGI volume, while operating profit was unchanged at $331 million and margin declined to 9.5% from 9.9%.

Raised 2026 outlook

Lockheed raised its outlook for the second consecutive quarter. The new sales range is approximately $80–82 billion, versus $79.75–81.75 billion previously, and diluted EPS is now $30.35–30.75 versus $29.95–30.65. The free-cash-flow range increased to $7.8–8.0 billion from $7.0–7.2 billion, alongside higher cash-from-operations guidance of $10.0–10.2 billion versus $9.2–9.4 billion. The business-segment operating-profit range is now $8.575–8.675 billion, compared with $8.5–8.7 billion. The guidance increase reflects the company’s stronger operating momentum and cash outlook.

Cash generation

Q3 cash from operations was $3.44 billion and free cash flow, which Lockheed defines as operating cash flow less capital expenditures, was $3.00 billion. Both were lower than a year ago, when they were $3.73 billion and $3.35 billion, respectively; management attributed the declines primarily to higher customer receipts in Q3 2025. The company spent $439 million on capital expenditures in the quarter and $599 million on independent research and development. Cash and cash equivalents were $5.96 billion at quarter-end.

F-35 contract funding

The company remains in negotiations with the U.S. Government on production contracts for F-35 Lots 20 and higher. During Q3, costs incurred on the Lot 20 advance-acquisition contract began to exceed current contractual authorization and funding. Lockheed said results, cash flows and financial condition could be negatively affected in future periods without additional authorization and funding. Aeronautics delivered 43 F-35 aircraft in the quarter, compared with 46 a year earlier; cumulative production deliveries reached 1,387, with a backlog of 274 aircraft.

Lockheed Martin Corporation

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