Lockheed Martin (LMT) Stock Jumps 7% as Q2 Earnings Beat and Guidance Raised

TLDR

• Lockheed Martin reported Q2 EPS of $7.94 on revenue of $20.1 billion, beating Wall Street estimates of $7.23 EPS and $19.37 billion in revenue.
• Revenue grew 11% year-over-year, driven by growth across all four business segments.
• The company’s backlog hit a record $230 billion, up from $186 billion at the end of Q1, including a $35 billion THAAD contract with the Missile Defense Agency.
• Full-year 2026 EPS guidance raised to a midpoint of $30.30, above the analyst consensus of $29.85; revenue guidance raised to a midpoint of $80.75 billion.
• LMT stock jumped roughly 7% premarket following the results.

Lockheed Martin posted a strong second quarter Thursday, topping analyst estimates on both earnings and revenue and raising its full-year outlook. The stock jumped around 7% premarket to roughly $548.50.

Lockheed Martin Corporation, LMT

Q2 adjusted EPS came in at $7.94, clearing the Wall Street consensus of $7.23 by $0.71. Revenue hit $20.1 billion, up 11% year-over-year and ahead of the $19.37 billion estimate.

A year ago, Lockheed reported adjusted EPS of around $7.30 on revenue of $18.2 billion. The comparison was helped by the prior year including $1.6 billion in program losses on a classified program and helicopter contracts.

LOCKHEED MARTIN $LMT Q2’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $20.06B (Est. $19.37B) 🟢; +11% YoY
🔹 EPS: $7.94 (Est. $7.23) 🟢
🔸 New Orders: $65B
🔸 Backlog: Record $230B; +38% YoY; includes a $35B multi-year contract to produce THAAD interceptors

Raises FY26 Guidance:
🔹… pic.twitter.com/SP8ksOv5cE

— Wall St Engine (@wallstengine) July 23, 2026

Adjusted operating profit surged to $2.2 billion in Q2, up from $571 million in the same period a year earlier.

Free cash flow came in at $2.9 billion for the quarter. That compares to negative $150 million in Q2 2025.

Record Backlog and Raised Guidance

The headline number that caught attention: backlog grew to a record $230 billion, up sharply from $186 billion at the end of Q1. The company booked $65 billion in new orders during the quarter.

That record backlog includes a multi-year $35 billion contract with the Missile Defense Agency for THAAD interceptors.

All four business segments — aerospace, missiles, helicopters, and space — saw sales and operating profit growth in the quarter. The Missiles and Fire Control division was a particular driver, with munitions production ramping up.

For the full year, Lockheed now expects EPS of $29.95–$30.65, with a midpoint of $30.30. That’s above the prior guidance midpoint of around $29.80 and ahead of the Street consensus of $29.85.

Revenue guidance was raised to $79.75–$81.75 billion, with a midpoint of $80.75 billion, versus prior guidance of $78.8 billion and the consensus of $79.1 billion.

Free cash flow guidance was also lifted, now expected at $7.0–$7.2 billion versus the prior range of $6.5–$6.8 billion.

Defense Budget Concerns Linger

Despite the strong results, the backdrop for the stock has been tough. LMT entered Thursday down around 22% since fighting began in Iran, as investors have questioned whether defense spending is near a peak.

A Democratic-controlled House after the midterms has added to those concerns, with budget pressure a recurring theme.

CFO Evan Scott pushed back on that narrative Thursday. “We continue to see support for defense to be bipartisan,” Scott said. “If you look historically, I think that’s absolutely been the case.”

Business segment operating profit for the full year is now expected in the range of $8.5–$8.7 billion, up from the prior range of $8.425–$8.675 billion.

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