Key Takeaways for Lockheed Martin Stock as of July 2026
- Revenue of $20.06 billion rose 10.5% year over year and 11.3% versus the first quarter, while EBIT of $2.48 billion climbed 231% year over year as the EBIT margin snapped back to 12.36% from 4.12% a year earlier.
- Guiding to full-year sales of $79.75 billion to $81.75 billion, Lockheed Martin lifted its growth outlook to 8% year over year at the midpoint, up from the 5% guide it gave last quarter, while raising segment operating profit guidance to $8.5 billion to $8.7 billion.
- Following a negative $150 million free cash flow print a year ago, free cash flow swung to a positive $2.9 billion this quarter, a $3 billion turnaround tied to faster customer receipts and lower tax payments.
Lockheed Martin’s free cash flow swung $3 billion in a single year. Pull the full quarterly trend on TIKR for free →
Lockheed Martin’s Record Backlog and Broad Raise Reset the Growth Story
Lockheed Martin (LMT) turned in a second quarter that reset the growth trajectory investors had priced into Lockheed Martin stock. Revenue reached $20.06 billion, up 10.5% year over year and 11.3% versus the first quarter, while EBIT of $2.48 billion climbed 231.4% year over year as the EBIT margin snapped back to 12.36% from 4.12% a year earlier.
That swing traces mostly to the absence of last year’s one-time program adjustments, but the underlying trend held too. Adjusted EPS of $7.94 rose 443.8% year over year and 23.3% versus the first quarter, net income of $1.84 billion climbed 436.8% year over year, and free cash flow swung from negative $150 million a year ago to positive $2.9 billion, a $3 billion turnaround CFO Evan Scott tied to faster customer receipts and lower tax payments.
Backlog carried the more durable story. It closed the quarter at a record $230 billion, up $64 billion from a year earlier, on a book-to-bill ratio of 3.2 to 1. The largest driver was a $35 billion, seven-year Missile Defense Agency contract that quadruples THAAD interceptor production. The Army followed with a $3 billion GMLRS production award, and the Army, Marine Corps and five allied nations split a $1.1 billion HIMARS contract.
Space Force also selected Lockheed Martin for Golden Dome space-based interceptor prototypes, and a $2.3 billion radar contract extended growth at Rotary and Mission Systems (RMS), the segment covering helicopters, radar and mission systems work. With that order book converting into contracts, CEO Jim Taiclet raised guidance on every metric management tracks. He said on the Q2 2026 earnings call: “We are raising our 2026 guidance, reflecting our confidence that our strategy is gaining momentum, and we will continue to produce sustained profitable growth over the next few years.”
Full-year sales guidance moved to $79.75 billion to $81.75 billion, an 8% growth rate at the midpoint versus the 5% guide management gave last quarter. Segment operating profit guidance rose to $8.5 billion to $8.7 billion, free cash flow guidance climbed to $7 billion to $7.2 billion, and EPS guidance moved to $29.95 to $30.65. Every one of the four segments now expects faster growth in the second half of 2026 than the first, led by Missiles and Fire Control, where sales grew 19% and profit grew 24% year over year in the quarter. Lockheed Martin stock now trades against a guide that assumes every segment accelerates, not just the munitions unit carrying it today.
Lockheed Martin’s backlog just hit $230 billion. Track how that order book converts to revenue on TIKR for free →
TIKR Values Lockheed Martin Stock at $834, Pricing In Sustained Munitions Growth
TIKR’s mid-case model values Lockheed Martin stock at $834 by December 2030, implying a 47% total return from the current price of $569, or 9% annualized over 4.4 years.
That annualized pace sits well above the low-single-digit returns a mature, low-growth defense contractor typically commands, reflecting the accelerating backlog conversion investors are now pricing into Lockheed Martin stock.
The target rests on Lockheed Martin’s own guidance raise, the record $230 billion backlog now converting into multiyear contracts like the THAAD award, and a free cash flow base that already swung $3 billion higher in a single quarter. That combination gives the model’s growth assumptions a foundation already visible in the print, not a hope for one.
TIKR’s model puts Lockheed Martin stock at $834, a 47% return by 2030. Check the assumptions yourself on TIKR for free →
Should You Invest in Lockheed Martin Corporation?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
