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Can GPS Modernization Strengthen Lockheed Martin's Growth Outlook?

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Key Takeaways

  • LMT secured $114M in GPS modernization orders to support GPS IIIF satellites and ground upgrades.
  • Rising demand for secure, resilient GPS systems could support LMT's long-term space business growth.
  • LMT shares gained 1.2% in a year, while its industry fell 18.2%.

Lockheed Martin (LMT - Free Report) is positioned to benefit from growing demand for secure and resilient satellite navigation systems as the U.S. military seeks to protect critical space infrastructure from evolving threats. The Global Positioning System (GPS) supports military operations, navigation, communications and timing services used across defense and commercial applications, making system reliability increasingly important.

Modernizing the GPS ground segment is key to maintaining these capabilities. Upgraded hardware and software can improve system security, reliability and flexibility while helping the network support next-generation satellites. A modular architecture can also make future upgrades easier to implement as technology and operational requirements evolve.

Lockheed Martin continues to support these efforts through its work with the U.S. Space Force. In September 2026, the company announced $114 million in additional task orders for GPS ground-system modernization, including support for GPS IIIF satellites and a technology refresh of existing ground infrastructure.

Beyond these awards, the need to protect satellite navigation from cyber threats, system disruptions and increasingly complex operating environments could sustain demand for space-based defense technologies. Reliable GPS capabilities remain important for precision-guided weapons, military logistics and a wide range of civilian services.

Lockheed Martin’s experience in satellite navigation, space systems and ground infrastructure positions it to benefit from continued investment in resilient GPS capabilities. Ongoing modernization and long-term system support could provide opportunities across its broader space business.

Defense Stocks to Keep on the Radar

Growing investment in resilient space infrastructure and satellite navigation could also benefit other defense contractors with established space capabilities.

Northrop Grumman (NOC - Free Report) : Northrop Grumman develops advanced space systems and satellite technologies for national security missions, supporting demand for resilient space-based capabilities.

RTX Corporation (RTX - Free Report) : RTX provides navigation, positioning and timing technologies for military platforms. Its avionics and navigation systems support reliable operations in demanding environments where accurate positioning and timing are critical.

The Zacks Rundown for LMT

Shares of LMT have surged 1.2% in the past year against the industry’s 18.2% decline.

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The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.40X compared with its industry’s average of 2.10X.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for LMT’s 2026 and 2027 earnings has moved north over the past 60 days.

Zacks Investment Research
Image Source: Zacks Investment Research

LMT stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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