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Lockheed Martin
(NYSE:LMT)
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Rating:70Outperform
Price Target:
$622.00
▲(11.77% Upside)
Action:Reiterated
Date:08/28/26
The score is primarily supported by strong and improving cash flow plus an upbeat earnings call featuring raised 2026 guidance and a record backlog. Offsetting this, financial risk is elevated due to leverage and margin compression versus prior years, while technical signals are mixed/neutral and valuation appears fair rather than deeply discounted.
Positive Factors
Record Backlog
The record backlog and strong book-to-bill provide substantial multi-year revenue visibility. They support capacity planning, supplier investment and sustained production across major defense programs, reducing dependence on winning near-term individual contracts.
Negative Factors
Elevated Leverage
The highly leveraged capital structure limits financial flexibility and increases sensitivity to weaker program profitability or cash-flow timing. A relatively small equity base also amplifies balance-sheet risk if execution problems reduce earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Record Backlog
The record backlog and strong book-to-bill provide substantial multi-year revenue visibility. They support capacity planning, supplier investment and sustained production across major defense programs, reducing dependence on winning near-term individual contracts.
Read all positive factors
Lockheed Martin Key Performance Indicators (KPIs)
Any
Total Backlog
Indicates the total value of orders yet to be fulfilled, providing insight into future revenue streams and demand for the company's products.
Indicates the total value of orders yet to be fulfilled, providing insight into future revenue streams and demand for the company's products.
Data provided by:
The Fly
The FlyLockheed Martin (LMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$130.13B
Dividend Yield2.46%
Average Volume (3M)1.18M
Price to Earnings (P/E)20.6
Beta (1Y)0.29
Revenue Growth7.20%
EPS Growth52.79%
CountryUS
Employees123,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)27.25
Shares Outstanding230,790,760
10 Day Avg. Volume1,022,187
30 Day Avg. Volume1,175,314
Financial Highlights & Ratios
PEG Ratio-6.05
Price to Book (P/B)16.62
Price to Sales (P/S)1.49
P/FCF Ratio16.17
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$622.62Price Target Upside11.88% Upside
Rating ConsensusHold
Number of Analyst Covering14
EPS Forecast (FY)30.38
Revenue Forecast (FY)$80.81B
Lockheed Martin Business Overview & Revenue Model
Company Description
Lockheed Martin Corporation stands as a prominent global security and aerospace enterprise, specializing in the comprehensive lifecycle of advanced technological systems. Its expertise spans the research, design, development, manufacturing, integr...
How the Company Makes Money
Lockheed Martin makes money primarily by selling defense and aerospace products and related services under contracts, with the U.S. government (especially the U.S. Department of Defense) as its largest customer. Revenue is generated across four ma...
Lockheed Martin Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call highlighted substantial operational and financial momentum: record backlog (+$64B YoY), accelerated revenue (Q2 sales +11% YoY; +7% ex. adjustments), a strong free cash flow turnaround (+$3.0B YoY to $2.9B), and raised full-year guidance across sales, operating profit and free cash flow. Munitions (MFC) was a standout with 19% sales growth and 24% profit growth in Q2, while broad-based segment uplifts and major contract awards underpin multi-year growth. Key challenges include a reduced Space profit outlook tied to the ULA Vulcan anomaly, modest Aeronautics margin pressure from F-16/C-130 issues, and near-term margin dilution/execution risks as large framework agreements transition to multiyear contracts and as government funding/timing is finalized. Overall, the positive operational and financial beats, sizeable backlog and upgraded guidance materially outweigh the identified risks, though execution and contract-conversion milestones will be important to monitor.Positive Updates
Record Backlog and Strong Book-to-Bill
Backlog reached an all-time high of $230.0 billion, an increase of roughly $64 billion versus Q2 2025, with a Q2 book-to-bill ratio of 3.2:1 and $65 billion of orders recorded in the quarter.
Negative Updates
Space Profit Outlook Reduced Due to ULA/Vulcan Anomaly
Although Space sales grew 6% YoY and profits 2% YoY in Q2, full-year Space profit outlook was lowered to $1.34B–$1.38B due to reduced ULA equity earnings stemming from an ongoing technical investigation of the Vulcan launch anomaly.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Backlog and Strong Book-to-Bill
Backlog reached an all-time high of $230.0 billion, an increase of roughly $64 billion versus Q2 2025, with a Q2 book-to-bill ratio of 3.2:1 and $65 billion of orders recorded in the quarter.
Read all positive updates
Company Guidance
Management raised full‑year 2026 guidance, now calling for sales of $79.75–$81.75 billion (midpoint ≈ +8% y/y vs prior 5% guide), segment operating profit of $8.5–$8.7 billion, free cash flow of $7.0–$7.2 billion, EPS of $29.95–$30.65 and capital expenditures of $2.0–$2.4 billion. The raise was driven by strong Q2 results including a record backlog of $230 billion (≈+$64 billion y/y), a book‑to‑bill of 3.2:1 with ~$65 billion of orders, Q2 sales of $20.1 billion (+11% y/y; +7% ex‑adjustments), Q2 segment operating margin of 10.8%, profit of $2.2 billion, Q2 EPS $7.94, free cash flow of $2.9 billion (vs. -$0.15 billion a year ago), $876 million of capex/R&D invested and $796 million returned to shareholders in dividends. Segment-level 2026 outlooks were also raised: Aeronautics sales $31.7–$32.7 billion (profit $3.0–$3.08 billion), Missiles & Fire Control $16.5–$16.9 billion (profit $2.3–$2.35 billion; Q2 sales +19% and profit +24% y/y), RMS $17.7–$18.1 billion (profit $1.86–$1.89 billion) and Space $13.85–$14.05 billion (profit $1.34–$1.38 billion, lowered for ULA impacts).Lockheed Martin Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 77.02B | 75.06B | 71.04B | 67.57B | 65.98B | 67.04B |
| Gross Profit | 9.09B | 7.62B | 6.93B | 8.48B | 8.29B | 9.06B |
| EBITDA | 9.86B | 7.75B | 8.82B | 10.44B | 8.71B | 9.48B |
| Net Income | 6.29B | 5.02B | 5.34B | 6.92B | 5.73B | 6.32B |
Balance Sheet | ||||||
| Total Assets | 62.45B | 59.84B | 55.62B | 52.46B | 52.88B | 50.87B |
| Cash, Cash Equivalents and Short-Term Investments | 3.79B | 4.12B | 2.48B | 1.44B | 2.55B | 3.60B |
| Total Debt | 20.54B | 21.70B | 20.27B | 17.46B | 15.55B | 11.68B |
| Total Liabilities | 53.68B | 53.12B | 49.28B | 45.62B | 43.61B | 39.91B |
| Stockholders Equity | 8.77B | 6.72B | 6.33B | 6.83B | 9.27B | 10.96B |
Cash Flow | ||||||
| Free Cash Flow | 8.73B | 6.91B | 5.29B | 6.23B | 6.13B | 7.70B |
| Operating Cash Flow | 10.40B | 8.56B | 6.97B | 7.92B | 7.80B | 9.22B |
| Investing Cash Flow | -1.72B | -1.98B | -1.79B | -1.69B | -1.79B | -1.16B |
| Financing Cash Flow | -6.18B | -4.94B | -4.14B | -7.33B | -7.07B | -7.62B |
Lockheed Martin Technical Analysis
Neutral
556.52
Price Trends
552.12
Positive
543.51
Positive
551.73
Positive
Market Momentum
0.63
Positive
45.62
Neutral
15.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LMT, the sentiment is Neutral. The current price of 556.52 is below the 20-day moving average (MA) of 582.72, above the 50-day MA of 552.12, and above the 200-day MA of 551.73, indicating a neutral trend. The MACD of 0.63 indicates Positive momentum. The RSI at 45.62 is Neutral, neither overbought nor oversold. The STOCH value of 15.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LMT.
Lockheed Martin Risk Analysis
Lockheed Martin disclosed 21 risk factors in its most recent earnings report. Lockheed Martin reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lockheed Martin Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $102.63B | 22.33 | 17.43% | 1.60% | 9.13% | 10.37% | |
76 Outperform | $285.33B | 36.13 | 11.79% | 1.30% | 11.84% | 24.93% | |
74 Outperform | $77.51B | 17.11 | 26.58% | 1.73% | 5.90% | 16.00% | |
70 Outperform | $130.13B | 20.60 | 86.24% | 2.34% | 7.20% | 52.79% | |
69 Neutral | $48.94B | 26.73 | 9.41% | 1.63% | 7.29% | 10.75% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
49 Neutral | $165.84B | 77.82 | 104.83% | ― | 24.78% | ― |
* Industrials Sector Average
LMT
Lockheed Martin
561.23
117.40
26.45%
BA
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207.78
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-12.47%
GD
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371.35
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16.50%
LHX
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266.25
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NOC
Northrop Grumman
539.70
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RTX
RTX
207.73
52.03
33.42%
Lockheed Martin Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Lockheed Martin Enhances Liquidity With New Credit Facilities
Positive
Aug 28, 2026
On August 24, 2026, Lockheed Martin entered into a new 364-day unsecured revolving credit agreement totaling $2.25 billion, replacing a prior 364-day facility scheduled to end in December 2026 without incurring early termination penalties. The new...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.