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Is LMT Stock a Smart Investment Option Before Q1 Earnings Release?
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Key Takeaways
Lockheed Martin is set to report Q1 2026 with EPS expected down 8.93% but revenues up 0.9%.
LMT's strong backlog, defense demand and missile, F-35 and space programs support revenue visibility.
S-92A ramp and PAC-3 production are expected to boost results despite margin pressure.
Lockheed Martin (LMT - Free Report) is expected to report first-quarter 2026 results on April 23, before market open.
The Zacks Consensus Estimate for earnings is pegged at $6.63 per share, indicating a year-over-year decline of 8.93%. The Zacks Consensus Estimate for revenues is pinned at $18.12 billion, indicating growth of 0.9% from the year-ago reported figure.
Image Source: Zacks Investment Research
LMT’s Earnings Surprise History
The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 14.01%.
Image Source: Zacks Investment Research
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Lockheed Martin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is +0.65%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Lockheed Martin carries a Zacks Rank #2.
Some other stocks in the same industry that, too, have the combination of factors indicating an earnings beat are GE Aerospace (GE - Free Report) and Northrop Grumman (NOC - Free Report) . GE Aerospace and Northrop Grumman have an Earnings ESP of +2.34% and +0.22%, respectively. NOC has a Zacks Rank #2 and GE carries a Zacks Rank #3 at present.
Factors That Might Have Impacted LMT’s Q1 Performance
The company’s first quarter results are expected to benefit from continued U.S. government and allied support for defense spending — particularly in missile defense, air dominance, and space systems.
Lockheed Martin’s quarterly results are expected to benefit from the ramp-up of the S-92A+ helicopter production. The main effect will likely be an increase in backlog and improved outlook for the Rotary and Mission Systems segment.
Strong backlog and demand momentum are expected to boost first quarter results. The company exited 2025 with a record backlog, providing significant revenue visibility. This backlog is supported by sustained global defense demand, particularly for flagship programs like the F-35, missile systems (PAC-3, THAAD), and space-based capabilities. As a result, first-quarter performance might have benefited from ongoing conversion of this backlog into revenues.
Lockheed Martin is accelerating production capacity for systems like PAC-3 interceptors under newly established multiyear framework agreements. These agreements are expected to have begun contributing to the quarterly revenues, though initial margins might have been slightly diluted due to early-stage production ramp costs.
At Lockheed Martin’s Aeronautics segment, growth is expected to have remained modest in the low single digits, but supported by stronger momentum in select areas. Advanced development programs under Skunk Works and support for the F-35 Lightning II are likely to have grown double-digit rates, helping offset slower growth elsewhere. While F-35 production might have increased slightly due to pricing and contract mix, the expanding sustainment work likely added more revenues but at lower profitability.
The company noted that the first quarter of 2026 had only 12 weeks (compared to 13 in the previous years), which could have slightly depressed revenues and cash flow compared to typical quarterly patterns.
LMT Stock Price Performance
In the past three months, the stock has returned 1% against the industry’s decline of 5.4%.
Image Source: Zacks Investment Research
LMT Stock Trading at a Discount
Lockheed Martin is currently trading at a discount compared to its industry on a forward 12-month P/S basis.
Image Source: Zacks Investment Research
GE Aerospace is trading at a premium compared to its industry on a forward 12-month P/S basis. Northrop Grumman is trading at a discount compared to its industry on a forward 12-month P/S basis.
LMT Stock’s ROIC
The image below shows that LMT stock’s trailing 12-month return on invested capital (ROIC) outperforms the peer group’s average return.
Image Source: Zacks Investment Research
Investment Thesis
Lockheed Martin is positioned for steady long-term growth, thanks to consistent demand for its major defense programs and a strong backlog that provides clear revenue visibility. The company continues to secure contracts across key platforms like the F-35 Lightning II, missile defense systems, helicopters, and precision strike weapons, supporting expansion across multiple business segments. Increasing international demand, combined with a favorable U.S. defense spending environment, further reinforces its outlook, enabling reliable revenue growth and stable cash flow over time.
Geopolitical developments and shifting government policies pose meaningful risks to the company’s operations, demand outlook and supply chain. Although the dynamic tariff environment in 2025 is unlikely to materially affect long-term results, it remains subject to uncertainties such as retaliatory measures and legal challenges.
End Note
Lockheed Martin benefits from its broad portfolio of advanced defense systems, which helps it secure major contracts and maintain a strong order backlog. Key programs across space, aeronautics and naval defense continue to support growth.
Given its better price performance, strong ROIC and attractive valuation, investors might consider adding LMT stock to their portfolios right now.
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Is LMT Stock a Smart Investment Option Before Q1 Earnings Release?
Key Takeaways
Lockheed Martin (LMT - Free Report) is expected to report first-quarter 2026 results on April 23, before market open.
The Zacks Consensus Estimate for earnings is pegged at $6.63 per share, indicating a year-over-year decline of 8.93%. The Zacks Consensus Estimate for revenues is pinned at $18.12 billion, indicating growth of 0.9% from the year-ago reported figure.
Image Source: Zacks Investment Research
LMT’s Earnings Surprise History
The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 14.01%.
Image Source: Zacks Investment Research
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Lockheed Martin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is +0.65%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Lockheed Martin carries a Zacks Rank #2.
You can see the complete list of today's Zacks #1 Rank stocks here.
Other Stocks Worth a Look
Some other stocks in the same industry that, too, have the combination of factors indicating an earnings beat are GE Aerospace (GE - Free Report) and Northrop Grumman (NOC - Free Report) . GE Aerospace and Northrop Grumman have an Earnings ESP of +2.34% and +0.22%, respectively. NOC has a Zacks Rank #2 and GE carries a Zacks Rank #3 at present.
Factors That Might Have Impacted LMT’s Q1 Performance
The company’s first quarter results are expected to benefit from continued U.S. government and allied support for defense spending — particularly in missile defense, air dominance, and space systems.
Lockheed Martin’s quarterly results are expected to benefit from the ramp-up of the S-92A+ helicopter production. The main effect will likely be an increase in backlog and improved outlook for the Rotary and Mission Systems segment.
Strong backlog and demand momentum are expected to boost first quarter results. The company exited 2025 with a record backlog, providing significant revenue visibility. This backlog is supported by sustained global defense demand, particularly for flagship programs like the F-35, missile systems (PAC-3, THAAD), and space-based capabilities. As a result, first-quarter performance might have benefited from ongoing conversion of this backlog into revenues.
Lockheed Martin is accelerating production capacity for systems like PAC-3 interceptors under newly established multiyear framework agreements. These agreements are expected to have begun contributing to the quarterly revenues, though initial margins might have been slightly diluted due to early-stage production ramp costs.
At Lockheed Martin’s Aeronautics segment, growth is expected to have remained modest in the low single digits, but supported by stronger momentum in select areas. Advanced development programs under Skunk Works and support for the F-35 Lightning II are likely to have grown double-digit rates, helping offset slower growth elsewhere. While F-35 production might have increased slightly due to pricing and contract mix, the expanding sustainment work likely added more revenues but at lower profitability.
The company noted that the first quarter of 2026 had only 12 weeks (compared to 13 in the previous years), which could have slightly depressed revenues and cash flow compared to typical quarterly patterns.
LMT Stock Price Performance
In the past three months, the stock has returned 1% against the industry’s decline of 5.4%.
Image Source: Zacks Investment Research
LMT Stock Trading at a Discount
Lockheed Martin is currently trading at a discount compared to its industry on a forward 12-month P/S basis.
Image Source: Zacks Investment Research
GE Aerospace is trading at a premium compared to its industry on a forward 12-month P/S basis. Northrop Grumman is trading at a discount compared to its industry on a forward 12-month P/S basis.
LMT Stock’s ROIC
The image below shows that LMT stock’s trailing 12-month return on invested capital (ROIC) outperforms the peer group’s average return.
Image Source: Zacks Investment Research
Investment Thesis
Lockheed Martin is positioned for steady long-term growth, thanks to consistent demand for its major defense programs and a strong backlog that provides clear revenue visibility. The company continues to secure contracts across key platforms like the F-35 Lightning II, missile defense systems, helicopters, and precision strike weapons, supporting expansion across multiple business segments. Increasing international demand, combined with a favorable U.S. defense spending environment, further reinforces its outlook, enabling reliable revenue growth and stable cash flow over time.
Geopolitical developments and shifting government policies pose meaningful risks to the company’s operations, demand outlook and supply chain. Although the dynamic tariff environment in 2025 is unlikely to materially affect long-term results, it remains subject to uncertainties such as retaliatory measures and legal challenges.
End Note
Lockheed Martin benefits from its broad portfolio of advanced defense systems, which helps it secure major contracts and maintain a strong order backlog. Key programs across space, aeronautics and naval defense continue to support growth.
Given its better price performance, strong ROIC and attractive valuation, investors might consider adding LMT stock to their portfolios right now.