Lockheed jumps after missile ramp-up fuels earnings beat
The defense giant lifted its 2026 forecast after quarterly profit surged and its order backlog hit a record $230 billion.
By Sal Moretti · Money Reporter
2 min read
Lockheed Martin shares popped 6.1% before Thursday’s opening bell after the defense contractor posted a far stronger second quarter than Wall Street expected and lifted its 2026 targets.
The move put the stock on pace for its biggest post-earnings one-day gain since the company reported second-quarter results in 2024, according to MarketWatch.
Lockheed said net earnings for the quarter ended June 28 rose 437% from a year earlier to $1.84 billion. Earnings per share climbed to $7.94 from $1.46, topping the $7.19 average estimate from analysts surveyed by FactSet.
Revenue also came in hot. Sales rose 10.5% to $20.06 billion, ahead of the $19.34 billion FactSet consensus.
Missile demand packs the order book
The company’s backlog reached a record $230 billion after Lockheed booked $65 billion in new orders during the quarter.
Chief Executive Jim Taiclet said the company made “a major step forward in transforming munitions production” during the quarter. He said that helped Lockheed secure a $35 billion contract with the Missile Defense Agency for the Terminal High Altitude Area Defense system, known as THAAD.
MarketWatch reported that Lockheed’s effort to speed production of missile and defense systems has lined up with rising demand tied to hostilities in the Middle East and increased European military spending as Russia’s war in Ukraine continues.
The company said higher sales in air-defense and missile-defense programs helped lift its missiles and fire-control unit. Sales in that segment rose 19.5% to $4.1 billion, beating the $4.03 billion expected by analysts surveyed by FactSet.
F-35 unit also clears expectations
Lockheed’s aeronautics business, which includes the F-35 fighter jet, reported a 9.3% sales increase to $8.11 billion. That was above the $7.61 billion FactSet estimate.
Rotary and mission systems sales rose 9% to $4.35 billion, while space sales increased 5.7% to $3.5 billion.
After the second-quarter beat, Lockheed raised its full-year earnings guidance to a range of $29.95 to $30.65 a share. Its previous forecast called for $29.35 to $30.25 a share.
The company also increased its 2026 sales outlook to between $79.75 billion and $81.75 billion, up from an earlier range of $77.5 billion to $80 billion.
The stock still has ground to make up
MarketWatch reported that Lockheed and other defense contractors have faced pressure since the start of the Iran war because of disruptions affecting shipments to customers in the Middle East.
Lockheed shares closed at a record high on March 2, the first trading day after that war began, according to MarketWatch. Since the end of February, the stock has fallen 21.8%.
Even after that slide, Lockheed shares were up 6.4% for 2026. The S&P 500, by comparison, had gained 9.6%.
This story draws on original reporting from MarketWatch.