Lockheed Martin delivered impressive second-quarter results on Thursday, exceeding analyst projections for both profit and sales while upgrading its outlook for the remainder of the year. The defense giant’s shares rallied roughly 7% in premarket activity to approximately $548.50.
Lockheed Martin Corporation, LMT
The company’s Q2 adjusted earnings per share reached $7.94, beating the consensus estimate of $7.23 by a margin of $0.71. Sales totaled $20.1 billion, representing an 11% increase from the prior year and topping the expected $19.37 billion.
In the comparable quarter last year, Lockheed posted adjusted earnings of approximately $7.30 per share with revenue of $18.2 billion. The year-over-year comparison benefited from the previous period’s inclusion of $1.6 billion in losses related to a classified program and certain helicopter contracts.
LOCKHEED MARTIN $LMT Q2’26 EARNINGS HIGHLIGHTS
Revenue: $20.06B (Est. $19.37B)
; +11% YoY
New Orders: $65B
Raises FY26 Guidance:
— Wall St Engine (@wallstengine) July 23, 2026
Adjusted operating income soared to $2.2 billion during the quarter, a significant jump from just $571 million in the corresponding period of the previous year.
The company generated free cash flow of $2.9 billion in Q2, marking a dramatic turnaround from the negative $150 million posted in the second quarter of 2025.
The standout figure from the report: the company’s backlog expanded to an unprecedented $230 billion, jumping significantly from $186 billion at Q1’s conclusion. During the three-month period, Lockheed secured $65 billion in fresh orders.
This historic order book includes a substantial multi-year $35 billion agreement with the Missile Defense Agency focused on THAAD interceptor systems.
Performance improved across all four operating segments — aerospace, missiles, helicopters, and space — with each division posting gains in both revenue and operating profit. The Missiles and Fire Control segment emerged as a particularly strong performer, benefiting from accelerated munitions manufacturing.
Looking ahead to the full fiscal year, the company now anticipates EPS in the range of $29.95 to $30.65, with a midpoint of $30.30. This represents an increase from the previous midpoint guidance of approximately $29.80 and surpasses the Street consensus of $29.85.
Revenue projections were elevated to a range of $79.75 to $81.75 billion, with a midpoint of $80.75 billion, compared to earlier guidance of $78.8 billion and consensus estimates of $79.1 billion.
The company also raised its free cash flow expectations to $7.0 to $7.2 billion, up from the previous range of $6.5 to $6.8 billion.
Notwithstanding Thursday’s robust performance, the stock has faced headwinds in recent months. LMT entered the trading session down approximately 22% since hostilities erupted in Iran, as market participants have debated whether defense expenditures might be approaching a cyclical high.
Democratic control of the House following midterm elections has amplified these apprehensions, with fiscal constraints emerging as a persistent concern.
CFO Evan Scott addressed these worries directly on Thursday. “We continue to see support for defense to be bipartisan,” Scott stated. “If you look historically, I think that’s absolutely been the case.”
Operating profit across all business segments for the full year is now projected to fall between $8.5 and $8.7 billion, an increase from the previous range of $8.425 to $8.675 billion.
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