10-Q · April 23, 2026
Lockheed Martin reported Q1 sales of $18,021 million, roughly flat versus Q1 2025 (+$58 million, +0.3%) but down versus the prior quarter (Q4 2025: $20,320 million, -$2,299 million, -11.3%). Gross profit declined to…
Earnings analysis · 10-Q
LMT earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
Lockheed Martin delivered a strong third quarter, with $20.711 billion of revenue and $7.97 diluted EPS beating consensus by approximately 1.2% and 6.1%, respectively. Revenue increased approximately 3.2% sequentially…
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Lockheed Martin delivered a strong third quarter, with $20.711 billion of revenue and $7.97 diluted EPS beating consensus by approximately 1.2% and 6.1%, respectively. Revenue increased approximately 3.2% sequentially and 11.3% year over year, while EPS rose approximately 15% year over year; Missiles and Fire Control led segment growth at 24%, and backlog reached a record $291.984 billion. Management raised 2026 sales, EPS, operating-cash-flow and free-cash-flow outlooks, although the available filing extract does not provide current-quarter gross margin, operating margin or free-cash-flow amounts. Key risks remain U.S. Government funding, F-35 execution, fixed-price contract exposure and supply-chain availability.
Reported figures
- Earnings per share
- $7.97
- Segment
- Missiles and Fire Control: sales increased 24% year over year.
- Segment
- All four reporting segments grew year over year; segment revenue dollars were not provided in the available filing extract.
What stood out
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Revenue beat and accelerated year over year
Third-quarter revenue was $20.711 billion, up approximately 3.2% from $20.06 billion in 2026 second-quarter revenue and approximately 11.3% from $18.61 billion in the year-earlier quarter. Revenue also exceeded the $20.456 billion consensus estimate.
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EPS beat with year-over-year growth
Diluted EPS was $7.97, versus $7.94 in the prior quarter and $6.95 in the year-earlier quarter, representing approximately 15% year-over-year growth. EPS exceeded the $7.51 consensus estimate.
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Missiles and Fire Control led segment growth
Missiles and Fire Control sales increased 24% year over year, the strongest growth among the four segments; all four segments grew during the quarter.
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Record backlog improves revenue visibility
Backlog reached a record $291.984 billion, supporting visibility into future revenue and reflecting strong defense demand.
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Full-year outlook raised
The 2026 outlook was raised to $80.0 billion-$82.0 billion of sales, $30.35-$30.75 of EPS, and $7.8 billion-$8.0 billion of free cash flow.
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Repurchase capacity remains available
The company had $8.324 billion of remaining share-repurchase authorization at September 27, 2026, although it made no open-market repurchases during the quarter.
What to watch
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Government funding and contract risk
The filing continues to identify dependence on U.S. Government contracts, funding decisions, continuing resolutions, debt-ceiling issues and shutdowns as material risks. The company states that risk factors were unchanged from the 2025 Form 10-K except for an update in the quarter ended March 29, 2026.
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F-35 and fixed-price program exposure
The F-35 program is specifically identified as exposed to development, production, sustainment, performance, schedule, cost and requirements risk. The filing also warns that fixed-price contracts can limit cost recovery, including on complex programs described in the 2025 Form 10-K.
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Financing and liquidity execution risk
The company entered into a 364-day revolving credit agreement dated August 24, 2026, and an extension agreement, indicating an updated financing arrangement. Liquidity and financing transactions remain subject to market conditions and other risks identified in the filing.
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Supply-chain and production constraints
Supply-chain and production risks include materials availability, rare earth minerals, microelectronics, government-furnished equipment and supplier viability. The filing identifies these exposures as potentially affecting planned production rates and orders, including during 2026.
Management's outlook
Management raised 2026 outlook versus the prior outlook: sales to approximately $80.0 billion-$82.0 billion from $79.75 billion-$81.75 billion; EPS to approximately $30.35-$30.75 from $29.95-$30.65; operating cash flow to approximately $10.0 billion-$10.2 billion from $9.2 billion-$9.4 billion; and free cash flow to approximately $7.8 billion-$8.0 billion from $7.0 billion-$7.2 billion.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.