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Lockheed Q2 Earnings Beat Estimates, Sales Increase Year Over Year
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Key Takeaways
Lockheed Martin's Q2 adjusted EPS rose 8.9% to $7.94, beating estimates by 10%.
LMT sales climbed 10.5% to $20.06B as all four business segments posted year-over-year growth.
Lockheed Martin raised 2026 sales and EPS guidance, with free cash flow seen at $7.00B-$7.20B.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2026 adjusted earnings of $7.94 per share, which beat the Zacks Consensus Estimate of $7.22 by 10%. The bottom line increased 8.9% from the year-ago quarter's reported figure of $7.29.
Operational Highlights of Lockheed
Net sales were $20.06 billion, which beat the Zacks Consensus Estimate of $19.34 billion by 3.7%. The top line inched up 10.5% from $18.16 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 June 28, 2026, was $230.42 billion compared with $193.62 billion as of Dec. 31, 2025.
The Aeronautics segment accounted for $54.36 billion of the total backlog amount, while the Missiles and Fire Control segment contributed $87.88 billion. The Rotary and Mission Systems segment contributed $48.45 billion, while the Space unit accounted for $39.72 billion.
Lockheed’s Segmental Performance
Aeronautics: Sales increased 9.3% year over year to $8.11 billion. The increase was primarily driven by higher sales from the F 35 program.
The segment reported an operating profit of $760 million against the operating loss of $98 million in the year-ago quarter. The operating margin expanded 1070 basis points (bps) to 9.4%.
Missiles and Fire Control: Quarterly sales improved a solid 19.5% year over year to $4.10 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 $594 million from $479 million in the prior-year quarter. The operating margin expanded 50 bps to 14.5%.
Space: The top line improved 5.7% year over year to $3.50 billion, driven by higher sales from strategic and missile defense programs.
The segment’s operating profit increased to $371 million. The operating margin contracted 30 bps to 10.6%.
Rotary and Mission Systems: Quarterly revenues increased 7.8% to $4.35 billion on a year-over-year basis, driven by higher sales of Sikorsky helicopter programs.
The segment reported an operating profit of $437 million against the operating loss of $172 million in the second quarter of 2025. The operating margin contracted 1430 bps to 10%.
Financial Condition of LMT
Lockheed’s cash and cash equivalents totaled $3.79 billion as of June 28, 2026, compared with $4.12 billion at the end of 2025.
Cash from operating activities amounted to $3.46 billion as of June 28, 2026, compared with $1.61 billion a year ago.
Long-term debt as of June 28, 2026, totaled $20.54 billion compared with $20.53 billion at the end of 2025.
Lockheed’s 2026 Guidance
Lockheed expects to generate sales in the range of $79.75-$81.75 billion in 2026 compared with its previous guidance of $77.50-$80.00 billion. 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 $29.95-$30.65 compared with its previous guidance 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 $9.20-$9.40 billion.
It expects capital expenditure of approximately $2.00-$2.40 billion.
Lockheed expects to generate a free cash flow of approximately $7.00-$7.20 billion.
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.
Northrop Grumman Corporation (NOC - Free Report) reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.
In the fourth quarter, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.
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Lockheed Q2 Earnings Beat Estimates, Sales Increase Year Over Year
Key Takeaways
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2026 adjusted earnings of $7.94 per share, which beat the Zacks Consensus Estimate of $7.22 by 10%. The bottom line increased 8.9% from the year-ago quarter's reported figure of $7.29.
Operational Highlights of Lockheed
Net sales were $20.06 billion, which beat the Zacks Consensus Estimate of $19.34 billion by 3.7%. The top line inched up 10.5% from $18.16 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 June 28, 2026, was $230.42 billion compared with $193.62 billion as of Dec. 31, 2025.
The Aeronautics segment accounted for $54.36 billion of the total backlog amount, while the Missiles and Fire Control segment contributed $87.88 billion. The Rotary and Mission Systems segment contributed $48.45 billion, while the Space unit accounted for $39.72 billion.
Lockheed’s Segmental Performance
Aeronautics: Sales increased 9.3% year over year to $8.11 billion. The increase was primarily driven by higher sales from the F 35 program.
The segment reported an operating profit of $760 million against the operating loss of $98 million in the year-ago quarter. The operating margin expanded 1070 basis points (bps) to 9.4%.
Missiles and Fire Control: Quarterly sales improved a solid 19.5% year over year to $4.10 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 $594 million from $479 million in the prior-year quarter. The operating margin expanded 50 bps to 14.5%.
Space: The top line improved 5.7% year over year to $3.50 billion, driven by higher sales from strategic and missile defense programs.
The segment’s operating profit increased to $371 million. The operating margin contracted 30 bps to 10.6%.
Rotary and Mission Systems: Quarterly revenues increased 7.8% to $4.35 billion on a year-over-year basis, driven by higher sales of Sikorsky helicopter programs.
The segment reported an operating profit of $437 million against the operating loss of $172 million in the second quarter of 2025. The operating margin contracted 1430 bps to 10%.
Financial Condition of LMT
Lockheed’s cash and cash equivalents totaled $3.79 billion as of June 28, 2026, compared with $4.12 billion at the end of 2025.
Cash from operating activities amounted to $3.46 billion as of June 28, 2026, compared with $1.61 billion a year ago.
Long-term debt as of June 28, 2026, totaled $20.54 billion compared with $20.53 billion at the end of 2025.
Lockheed’s 2026 Guidance
Lockheed expects to generate sales in the range of $79.75-$81.75 billion in 2026 compared with its previous guidance of $77.50-$80.00 billion. 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 $29.95-$30.65 compared with its previous guidance 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 $9.20-$9.40 billion.
It expects capital expenditure of approximately $2.00-$2.40 billion.
Lockheed expects to generate a free cash flow of approximately $7.00-$7.20 billion.
LMT’s Zacks Rank
LMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.
Northrop Grumman Corporation (NOC - Free Report) reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.
In the fourth quarter, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.