Lockheed Martin lifts Q3 sales 11% and raises 2026 guidance

what happened

US defense contractor Lockheed Martin posted third-quarter 2026 sales of $20.7 billion, up from $18.6 billion a year earlier, according to TradingView, which summarized the company's SEC filing. Net earnings reached $1.8 billion, or $7.97 per diluted share, and free cash flow came in at $3.0 billion. All four business segments grew year over year.

Reuters, citing LSEG data, notes the result slightly beat the consensus of $20.51 billion from 18 analysts. Backlog expanded to a record $292 billion, including $52.5 billion tied to a multi-year PAC-3 interceptor award. The company now expects 2026 sales of roughly $80–82 billion, diluted EPS of $30.35–30.75 and cash generation of $7.8–8.0 billion.

The company also said it is still negotiating with the US government over F-35 contracts for Lot 20 and later. Costs on the Lot 20 advance contract exceeded current authorization and funding, and without more of both, future results could suffer.

why it matters

For markets, the record backlog and higher guidance point to steady demand for missile and fighter programs, while the unresolved F-35 funding question is the main open risk. Reuters notes the shares traded at about 17 times forward 12-month earnings.

market impact

LMT and defense sector: record backlog and higher guidance support sentiment; unresolved F-35 funding is the key risk.

tags

instruments