Key Takeaways
- CNBC’s Jim Cramer praised LMT as “sensational” during Mad Money, highlighting robust business fundamentals
- Second quarter 2026 net earnings surged to $1.836 billion from $342 million in the same period last year
- Company reached record backlog of $230.4 billion following $65 billion in fresh orders during Q2
- More than $90 billion in defense contract awards secured for PAC-3 and THAAD missile systems
- Management elevated full-year 2026 EPS forecast to $29.95-$30.65; shares climbing 21.12% this year
Shares of Lockheed Martin (LMT) started Friday’s trading session at $587.12, posting a 0.7% gain for the day and a robust 21.12% increase year-to-date, significantly outperforming the S&P 500’s 12.92% advance during the identical timeframe.
Lockheed Martin Corporation, LMT
During the Lightning Round segment of Mad Money on August 6, Jim Cramer delivered an unambiguous endorsement of the aerospace giant. He described the stock as “sensational” while praising CEO Jim Taiclet as “fantastic.” Such unqualified enthusiasm represents a strong vote of confidence from the veteran market commentator.
The second quarter 2026 financial results validate Cramer’s optimism. Total net sales reached $20.1 billion, reflecting an 11% year-over-year increase. Diluted earnings per share climbed to $7.94, a substantial jump from $1.46 reported in Q2 2025. Free cash flow registered $2.9 billion, a dramatic reversal from the negative $150 million recorded twelve months earlier.
Last year’s second quarter saw the company struggle with $1.6 billion in program losses, which suppressed net earnings to just $342 million. This quarter, net earnings soared to $1.836 billion. The transformation goes well beyond simply exceeding expectations—it signals a fundamental business reversal.
Operating profit across business segments jumped 279% year-over-year to $2.162 billion. The Missiles and Fire Control division delivered exceptional performance with revenues of $4.1 billion, marking a 19% annual increase, while operating profit expanded by 24%.
Historic Backlog and Significant Contract Awards
Lockheed concluded the second quarter with an unprecedented backlog totaling $230.4 billion, up substantially from $193.6 billion at the close of 2025. During the three-month period alone, the defense contractor secured $65 billion in new business.
This backlog equates to approximately three years of revenue based on current production levels. Such forward visibility provides a competitive advantage that few competitors in the defense sector can match.
The individual contracts fueling this backlog are substantial in scale. During July 2026, Lockheed obtained a seven-year contract modification valued at up to $53.86 billion for PAC-3 Missile Segment Enhancement interceptors. The previous month brought a $35 billion award for THAAD interceptor systems. Earlier in the year, the company added a $1.9 billion extension supporting the C-130J training program.
Combined, these two missile programs alone account for more than $90 billion in contract value awarded within weeks of each other.
To accommodate increased production demands, Lockheed unveiled an $8 billion to $9 billion capital investment initiative running through 2030, targeting expansion of over 20 manufacturing sites throughout the United States. Construction of new production facilities has commenced in Camden, Arkansas, and Troy, Alabama.
Analyst Community Maintains Reserved Stance
Notwithstanding the impressive financial performance, Wall Street analysts maintain a cautious posture. The consensus recommendation stands at “Hold” with a median price objective of $626.33. JPMorgan established a $620 price target. Wells Fargo positioned its forecast at $600. TD Cowen actually reduced its target from $600 down to $560.
Wall Street Zen and DZ Bank stand apart from the crowd, both upgrading LMT to “strong buy” ratings. However, the majority of analysts continue to take a wait-and-see approach.
Lockheed increased its full-year 2026 earnings per share outlook to a range of $29.95-$30.65. The free cash flow projection was similarly elevated to $7.0 billion-$7.2 billion. Annual net sales are now anticipated to fall between $79.75 billion and $81.75 billion, translating to roughly 8% year-over-year growth.
The corporation also announced a quarterly dividend payment of $3.45 per share, scheduled for distribution on September 25, yielding 2.4% annually. Institutional ownership comprises 74.19% of outstanding shares. Victrix Investment Advisors expanded its LMT position by 15.4% during Q2, increasing its holdings to approximately $7.07 million.
LMT trades within a 52-week range spanning from a low of $423.91 to a high of $692.00.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
