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Lockheed Q1 Earnings Miss Estimates, Sales Increase Year Over Year
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Key Takeaways
Lockheed Martin reported Q1 EPS of $6.44, missing estimates, while sales edged up 0.3% year over year.
LMT saw strength in missiles and space units, but aeronautics and rotary segments posted sales declines.
LMT backlog fell to $186.43B, while cash from operations dropped sharply to $0.22B year over year.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2026 adjusted earnings of $6.44 per share, which missed the Zacks Consensus Estimate of $6.67 by 3.5%. The bottom line increased 11.5% from the year-ago quarter's reported figure of $2.22.
Operational Highlights of Lockheed
Net sales were $18.02 billion, which missed the Zacks Consensus Estimate of $18.12 billion by 0.6%. The top line inched up 0.3% from $17.96 billion reported in the year-ago quarter.
The year-over-year improvement was driven by higher sales growth registered by LMT’s business segments.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
LMT’s backlog as of March 29, 2026, was $186.43 billion compared with $193.62 billion as of Dec. 31, 2025.
The Aeronautics segment accounted for $55.03 billion of the total backlog amount, while the Missiles and Fire Control segment contributed $46.57 billion. The Rotary and Mission Systems segment contributed $45.84 billion, while the Space unit accounted for $38.99 billion.
Lockheed’s Segmental Performance
Aeronautics: Sales decreased 1.5% year over year to $6.95 billion. The decrease was primarily attributable to lower sales from classified programs.
The segment reported an operating profit of $619 million compared with $720 million in the year-ago quarter. The operating margin contracted 130 basis points (bps) to 8.9%.
Missiles and Fire Control: Quarterly sales improved a solid 8.2% year over year to $3.65 billion. This was on account of higher sales from integrated air and missile defense programs, as well as tactical and strike missile programs.
The segment’s operating profit increased to $500 million compared with $465 in the prior-year quarter. The operating margin contracted 10 bps to 13.7%.
Space: The top line improved 7% year over year to $3.43 billion, driven by higher sales from strategic and missile defense programs.
The segment’s operating profit increased to $281 million. The operating margin contracted 360 bps to 8.2%.
Rotary and Mission Systems: Quarterly revenues decreased 7.8% to $3.99 billion on a year-over-year basis, due to lower volume on radar programs.
The segment reported an operating profit of $423 million compared with $521 million in the first quarter of 2025. The operating margin contracted 140 bps to 10.6%.
Financial Condition of LMT
Lockheed’s cash and cash equivalents totaled $1.89 billion as of March 29, 2026, compared with $4.12 billion at the end of 2025.
Cash from operating activities amounted to $0.22 billion as of March 29, 2026, compared with $1.41 billion a year ago.
Long-term debt as of March 29, 2026, totaled $20.53 billion, in line with the figure at the end of 2025.
Lockheed’s 2026 Guidance
Lockheed expects to generate sales in the range of $77.5-$80.0 billion in 2026. The Zacks Consensus Estimate is pegged at $79.16 billion, which lies above the midpoint of the company’s sales guidance.
LMT expects to generate adjusted EPS in the range of $29.35-$30.25. The consensus estimate is currently pegged at $29.97 per share, which lies above the midpoint of the company’s guidance.
Lockheed expects to generate cash from operations in the range of $9.15-$9.45 billion.
It expects capital expenditure of approximately $2.50-$2.80 billion.
Lockheed expects to generate a free cash flow of approximately $6.50-$6.80 billion.
RTX Corporation’s (RTX - Free Report) first-quarter 2026 adjusted earnings per share (EPS) of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.
The Boeing Company (BA - Free Report) incurred an adjusted loss of 20 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 95 cents. The bottom line improved from the year-ago quarter’s reported loss of 49 cents.
Revenues amounted to $22.22 billion, which outpaced the Zacks Consensus Estimate of $21.87 billion by 3.5%. The top line also surged 14% from the year-ago quarter’s reported figure of $19.5 billion.
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Lockheed Q1 Earnings Miss Estimates, Sales Increase Year Over Year
Key Takeaways
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2026 adjusted earnings of $6.44 per share, which missed the Zacks Consensus Estimate of $6.67 by 3.5%. The bottom line increased 11.5% from the year-ago quarter's reported figure of $2.22.
Operational Highlights of Lockheed
Net sales were $18.02 billion, which missed the Zacks Consensus Estimate of $18.12 billion by 0.6%. The top line inched up 0.3% from $17.96 billion reported in the year-ago quarter.
The year-over-year improvement was driven by higher sales growth registered by LMT’s business segments.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Lockheed Martin Corporation price-consensus-eps-surprise-chart | Lockheed Martin Corporation Quote
LMT’s Backlog
LMT’s backlog as of March 29, 2026, was $186.43 billion compared with $193.62 billion as of Dec. 31, 2025.
The Aeronautics segment accounted for $55.03 billion of the total backlog amount, while the Missiles and Fire Control segment contributed $46.57 billion. The Rotary and Mission Systems segment contributed $45.84 billion, while the Space unit accounted for $38.99 billion.
Lockheed’s Segmental Performance
Aeronautics: Sales decreased 1.5% year over year to $6.95 billion. The decrease was primarily attributable to lower sales from classified programs.
The segment reported an operating profit of $619 million compared with $720 million in the year-ago quarter. The operating margin contracted 130 basis points (bps) to 8.9%.
Missiles and Fire Control: Quarterly sales improved a solid 8.2% year over year to $3.65 billion. This was on account of higher sales from integrated air and missile defense programs, as well as tactical and strike missile programs.
The segment’s operating profit increased to $500 million compared with $465 in the prior-year quarter. The operating margin contracted 10 bps to 13.7%.
Space: The top line improved 7% year over year to $3.43 billion, driven by higher sales from strategic and missile defense programs.
The segment’s operating profit increased to $281 million. The operating margin contracted 360 bps to 8.2%.
Rotary and Mission Systems: Quarterly revenues decreased 7.8% to $3.99 billion on a year-over-year basis, due to lower volume on radar programs.
The segment reported an operating profit of $423 million compared with $521 million in the first quarter of 2025. The operating margin contracted 140 bps to 10.6%.
Financial Condition of LMT
Lockheed’s cash and cash equivalents totaled $1.89 billion as of March 29, 2026, compared with $4.12 billion at the end of 2025.
Cash from operating activities amounted to $0.22 billion as of March 29, 2026, compared with $1.41 billion a year ago.
Long-term debt as of March 29, 2026, totaled $20.53 billion, in line with the figure at the end of 2025.
Lockheed’s 2026 Guidance
Lockheed expects to generate sales in the range of $77.5-$80.0 billion in 2026. The Zacks Consensus Estimate is pegged at $79.16 billion, which lies above the midpoint of the company’s sales guidance.
LMT expects to generate adjusted EPS in the range of $29.35-$30.25. The consensus estimate is currently pegged at $29.97 per share, which lies above the midpoint of the company’s guidance.
Lockheed expects to generate cash from operations in the range of $9.15-$9.45 billion.
It expects capital expenditure of approximately $2.50-$2.80 billion.
Lockheed expects to generate a free cash flow of approximately $6.50-$6.80 billion.
LMT’s Zacks Rank
LMT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
RTX Corporation’s (RTX - Free Report) first-quarter 2026 adjusted earnings per share (EPS) of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.
The Boeing Company (BA - Free Report) incurred an adjusted loss of 20 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 95 cents. The bottom line improved from the year-ago quarter’s reported loss of 49 cents.
Revenues amounted to $22.22 billion, which outpaced the Zacks Consensus Estimate of $21.87 billion by 3.5%. The top line also surged 14% from the year-ago quarter’s reported figure of $19.5 billion.