LMT earnings analysis
What we found in LMT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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 $2,078 million (11.54% margin) from $2,323 million (12.94% prior year), and diluted EPS fell to $6.44 from $7.28 a year ago. Results were mixed by segment with Missiles & Fire Control and Space up on higher volume while Aeronautics and RMS saw lower sales and notably weaker segment operating profit.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue essentially flat year-over-year
- Total sales were $18,021 million in Q1 2026 versus $17,963 million in Q1 2025, up $58 million (+0.3%).
- Missiles & Fire Control growth
- MFC sales increased to $3,649 million from $3,373 million, up $276 million (+8%) with operating profit rising to $500 million from $465 million (+$35 million).
- Space sales increase
- Space sales rose to $3,428 million from $3,205 million, up $223 million (+7.0%).
- Delivered F-35 aircraft and healthy backlog
- Company delivered 32 F-35 aircraft in the quarter and reports a backlog of 336 aircraft as of March 29, 2026.
- Large remaining repurchase authorization
- Approximate dollar value of shares that may yet be purchased under the program remained $8,324 million as of the quarter end.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Earnings decline vs prior year
- Diluted EPS decreased to $6.44 in Q1 2026 from $7.28 in Q1 2025, a decline of $0.84 (≈ -11.5%).
- Margin compression — lower gross and operating profit
- Gross profit fell by $245 million to $2,078 million (margin 11.54% vs 12.94% prior year) and consolidated operating profit fell by $309 million to $2,063 million.
- Material segment profit declines (RMS, Space, Aeronautics)
- RMS operating profit fell to $423 million from $521 million (down $98 million); Space operating profit fell to $281 million from $379 million (down $98 million); Aeronautics operating profit fell to $619 million from $720 million (down $101 million).
- Program-specific unfavorable profit adjustments
- Company recorded unfavorable profit adjustments of $125 million on the F-16 program and $85 million on the C-130 program in Q1 2026.
- Joint-venture exposure disclosed as updated risk
- New/updated risk disclosure notes Lockheed’s equity-method investment in ULA was $544 million at March 29, 2026 (and $551 million at December 31, 2025), and the company expects it may provide financial guarantees and additional support to ULA in the future.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $6.44
- Gross margin
- 11.54%
- Operating margin
- 11.45%
- Segment
- Aeronautics: $6,953 million (operating profit $619 million; margin 8.9%)
- Segment
- Missiles & Fire Control: $3,649 million (operating profit $500 million; margin 13.7%)
- Segment
- Rotary & Mission Systems: $3,991 million (operating profit $423 million; margin 10.6%)
- Segment
- Space: $3,428 million (operating profit $281 million; margin 8.2%)
What they said about what is next.
This 10-Q does not contain new quantitative full-year guidance. (Management reaffirmed its full-year 2026 outlook in a contemporaneous 8-K/earnings release filed April 23, 2026: Sales $77,500–$80,000 million; diluted EPS $29.35–$30.25; free cash flow $6,500–$6,800 million.)
The filing reads about the same as the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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