Lockheed Martin Q2 Sales Surge 11%, Raises 2026 Outlook on Weapons Demand
LMT sits 33% above its 52-week low of $410.11.
Summary
Lockheed Martin delivered a strong Q2 with sales up 11% to $20.1B, beating the $19.34B consensus, and net income swinging to $1.8B from a prior-year loss. The absence of large program losses that plagued last year drove the earnings recovery. Management raised its full-year 2026 guidance across the board: sales now seen at $79.75B-$81.75B (up from $77.5B-$80B), segment operating profit to $8.5B-$8.7B, and free cash flow to $7B-$7.2B. The record $230B backlog, fueled by the recent $35B THAAD contract, underscores the demand environment. This follows a series of major contract wins and policy tailwinds, including the Defense Production Act invocation and international orders. The raised cash flow outlook directly addresses the negative free cash flow reported in Q1, signaling improved working capital management. With shares trading at 17x forward earnings versus 20x three months ago, the beat and raise could drive multiple expansion.
At the time of this announcement, LMT was trading at $546.12 on NYSE in the Manufacturing sector, with a market capitalization of approximately $118.6B. The 52-week trading range was $410.11 to $692.00. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.