Lockheed Martin Lifts 2026 Outlook as Shares Rise 7% After Results

Lockheed Martin shares rose 7% to close at $590.14 Thursday, Oct. 22, as the aerospace and defense company raised its 2026 financial outlook after stronger third-quarter results and outlined a 10-year F-35 framework.

The stock finished regular trading at 4 p.m. ET (20:00 UTC), after reaching $607.88 intraday. Its previous close was $551.51.

For the quarter ended Sept. 27, sales totaled $20.711 billion, up from $18.609 billion a year earlier. Net earnings increased to $1.845 billion, or $7.97 per diluted share, from $1.619 billion, or $6.95 per share.

Missiles and Fire Control sales rose 24% to $4.501 billion, driven mainly by higher production of PAC-3, THAAD, GMLRS and PrSM systems. Aeronautics sales grew 13% to $8.214 billion, with higher F-35 production and sustainment volume contributing.

Lockheed raised its 2026 sales outlook to $80 billion to $82 billion, from $79.75 billion to $81.75 billion. Its diluted earnings-per-share forecast rose to about $30.35 to $30.75, from $29.95 to $30.65. The company also increased its free cash flow guidance to $7.8 billion to $8 billion, compared with $7 billion to $7.2 billion previously.

The company’s backlog hit a record $292 billion, 27% above the second-quarter level. The total includes $52.5 billion associated with a multiyear PAC-3 MSE award. Chairman, President and CEO Jim Taiclet said, “The sustained financial momentum across our portfolio gives us confidence to increase our outlook for sales, earnings per share and free cash flow.”

The plan spans Lots 21-30, with 850 U.S. jets and international orders, plus a decade of sustainment and modification kits and associated initial spares. It sets a production rate of 156 aircraft per year. The framework is not a final contract: terms, pricing and schedules depend on multiyear authority and associated appropriations.

Free cash flow, a non-GAAP measure, was $2.999 billion in the quarter, down from $3.347 billion a year earlier. Cash from operations fell to $3.438 billion from $3.728 billion. The declines were primarily tied to higher customer receipts in the year-earlier quarter.

Costs on the F-35 Lot 20 advance acquisition contract began exceeding current contractual authorization and funding during the quarter. Without additional authorization and funding, Lockheed’s future operating results, cash flows and financial condition would be negatively affected.