Lockheed Martin Corporation | Lockheed Martin
BETHESDA, Md., Oct. 22, 2026 — Lockheed Martin Corporation (NYSE: LMT) has announced its financial results for the third quarter of 2026, highlighting a robust growth trajectory.
- Sales surged 11% to reach $20.7 billion.
- Net earnings increased by 14%, totaling $1.8 billion, or $7.97 per share.
- Cash from operations amounted to $3.4 billion, with free cash flow at $3.0 billion.
- A record backlog of $292.0 billion was reported, including $52.5 billion linked to the production of PAC-3 Missile Segment Enhancement interceptors.
- The financial outlook for 2026 has been updated positively.
Lockheed Martin’s Q3 sales increased by $2.1 billion year-over-year, driven by growth across all four business segments. Net earnings also exceeded expectations, with a delivery of $3 billion in free cash flow during the quarter.
Chairman, President, and CEO Jim Taiclet commented, “Our strong third-quarter performance underscores Lockheed Martin’s continuing leadership in the development and delivery of advanced and reliable defense technology solutions. Every day, our research, engineering, and production teams are deploying highly effective and scalable capabilities in the field, enhancing mission performance through both proven systems and advanced digital technologies. This strategy allows us to integrate innovative solutions with contributions from start-ups and established technology leaders.”
He added, “With the robust momentum in our financials, each operating segment recorded growth, sales surpassed $20.7 billion, and our net earnings rose to beyond $1.8 billion. We also reported a significant backlog, reinforcing our ability to increase dividends for the 24th consecutive year. Our growing confidence has prompted us to raise our guidance for sales, earnings per share, and free cash flow for the second consecutive quarter.”
Summary Financial Results
For the third quarter of 2026:
- Sales: $20,711 million (vs. $18,609 million in Q3 2025)
- Business Segment Operating Profit: Increased by $200 million driven by higher munitions production and volume in Aeronautics.
- Net Earnings: $1,845 million (up from $1,619 million in Q3 2025)
- Diluted Earnings per Share: $7.97 (compared to $6.95 in the same period last year)
- Cash from Operations: $3,438 million, with capital expenditures of $439 million.
- Free Cash Flow: $2,999 million compared to $3,347 million in 2025.
Financial Outlook for 2026
The updated forecast includes projected sales in the range of ~$80,000 – $82,000 million and anticipated business segment operating profit of ~$8,575 – $8,675 million. The company also expects total FAS/CAS pension adjustments around $1,365 million.
Updates on F-35 Contracts
Lockheed Martin is in ongoing negotiations with the U.S. Government regarding production contracts for F-35 lots 20 and beyond. Concerns were raised as incurred costs have started to surpass existing contractual authorizations.
Segment Highlights
Aeronautics: Sales increased to $8,214 million, with an operating profit of $743 million.
Missiles and Fire Control: Reported sales of $4,501 million and operating profit of $631 million, showing substantial growth.
Rotary and Mission Systems: Sales reached $4,511 million with an operating profit of $524 million, marking a 3% increase.
Space: Generated sales of $3,485 million and an operating profit of $331 million.
<pExpanded backlog coupled with the financial health of the company demonstrates Lockheed Martin's strength in the defense sector and commitment to advancing its capabilities in technology and production.
For further details on the earnings release and accompanying presentations, please visit the Lockheed Martin Investor Relations website at www.lockheedmartin.com/investor.
About Lockheed Martin
Lockheed Martin is a global defense technology firm that is dedicated to innovation and scientific advancement to maintain a security edge for its clients.
Source: Lockheed Martin (2026-10-22 10:19:00)
