Lockheed Martin beats third-quarter revenue estimates as backlog hits $292 billion

what happened

Lockheed Martin reported third-quarter 2026 revenue of $20.71 billion, ahead of the $20.44 billion analysts had expected, and up 11.3% from a year earlier. GAAP earnings per share came in at $7.97, compared with the $7.52 consensus.

The company nudged its full-year revenue outlook up to about $81 billion at the midpoint, from $80.75 billion. Its full-year GAAP EPS guidance of $30.55 at the midpoint is roughly in line with expectations. The order backlog grew 63.1% year on year to $292 billion, while the operating margin held at 11.8%. Free cash flow margin fell to 14.5% from 18% a year earlier.

The figures were reported by stockstory.org. After the release, the stock rose 3.3% to $570.13, and the market capitalization at the time was $127.3 billion.

why it matters

The backlog growth of nearly two thirds and the steady annual outlook matter most for investors. Strong demand for defense products supports revenue, but the drop in free cash flow margin from 18% to 14.5% points to pressure on spending and capital needs. The impact on the shares should be read alongside the wider defense sector.

market impact

Defense sector: strong demand and a bigger backlog support LMT and the industry's outlook

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