Key Takeaways
- Lockheed Martin delivered Q2 earnings per share of $7.94 against revenue of $20.1 billion, surpassing analyst expectations of $7.23 EPS and $19.37 billion in sales.
- The aerospace and defense contractor saw revenue climb 11% compared to the same quarter last year, with strength across its entire portfolio.
- Backlog reached an all-time high of $230 billion, jumping from $186 billion in the previous quarter, boosted by a $35 billion THAAD interceptor deal with the Missile Defense Agency.
- Management elevated its 2026 full-year EPS forecast to a midpoint of $30.30, exceeding the analyst consensus of $29.85, while revenue guidance now centers at $80.75 billion.
- Shares of LMT surged approximately 7% in premarket trading after the announcement.
Defense contractor Lockheed Martin delivered impressive second-quarter results on Thursday, exceeding expectations on both the top and bottom lines while upgrading its full-year projections. Shares climbed about 7% in premarket activity to around $548.50.
Lockheed Martin Corporation, LMT
The company’s adjusted earnings per share for Q2 reached $7.94, beating the consensus estimate of $7.23 by $0.71. Sales totaled $20.1 billion, marking an 11% increase from the prior year and outpacing the $19.37 billion projection.
In the comparable quarter last year, Lockheed posted adjusted earnings of approximately $7.30 on sales of $18.2 billion. The year-over-year improvement was partially aided by the absence of $1.6 billion in program losses from a classified initiative and helicopter programs that impacted the prior-year period.
The company’s adjusted operating profit jumped dramatically to $2.2 billion in the second quarter, a substantial improvement from $571 million during the same timeframe last year.
Free cash flow registered at $2.9 billion for the quarter, representing a significant turnaround from the negative $150 million recorded in Q2 2025.
Historic Backlog and Upgraded Annual Outlook
The most striking metric from the report: the company’s backlog expanded to an unprecedented $230 billion, up considerably from $186 billion at the close of the first quarter. During the three-month period, Lockheed secured $65 billion in new contract awards.
This historic order book includes a substantial multi-year $35 billion agreement with the Missile Defense Agency for THAAD interceptor systems.
Each of the company’s four operating divisions — aerospace, missiles, helicopters, and space — delivered both revenue and operating profit expansion during the quarter. The Missiles and Fire Control segment stood out as a key growth driver, benefiting from accelerated munitions production.
Looking ahead to the full year, Lockheed now anticipates earnings per share in the range of $29.95 to $30.65, with a midpoint of $30.30. This represents an increase from the previous midpoint guidance of approximately $29.80 and surpasses the Wall Street consensus of $29.85.
The company also lifted its revenue outlook to a range of $79.75 to $81.75 billion, centering at $80.75 billion. This compares favorably to earlier guidance of $78.8 billion and the analyst consensus of $79.1 billion.
Free cash flow projections were similarly enhanced, now targeted at $7.0 to $7.2 billion compared to the previous range of $6.5 to $6.8 billion.
Defense Spending Uncertainty Remains a Factor
Notwithstanding the robust quarterly performance, the stock has faced headwinds recently. Prior to Thursday’s report, LMT had declined roughly 22% since hostilities commenced in Iran, as market participants have debated whether defense appropriations are approaching a cyclical high point.
The Democratic takeover of the House following midterm elections has amplified these worries, with budget constraints becoming a persistent discussion point.
CFO Evan Scott addressed these concerns directly during Thursday’s call. “We continue to see support for defense to be bipartisan,” Scott stated. “If you look historically, I think that’s absolutely been the case.”
Operating profit across all business segments for the full year is now projected to fall within a range of $8.5 to $8.7 billion, representing an increase from the previous guidance of $8.425 to $8.675 billion.
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