Lockheed Martin Raises 2026 Forecast After Record Q3 Results

Lockheed Martin Corporation raised its 2026 sales, earnings, and free cash flow forecasts on Thursday after reporting third-quarter results that exceeded analyst expectations. The company reported sales of $20.7 billion, an 11% increase, and net earnings of $1.8 billion, a 14% increase. GAAP earnings per share reached $7.97, beating the $7.52 forecast.

Growth was primarily driven by the Missiles and Fire Control segment, which saw a 24% increase due to production ramps for PAC-3, THAAD, GMLRS, and PrSM programs. This growth follows the October 12 unveiling of the next-generation PAC-3 Edge interceptor and a $300 million manufacturing expansion in Texas announced on October 14. The company's backlog reached a record $292 billion, bolstered by a $52.5 billion multi-year PAC-3 MSE interceptor contract, enabling a dividend increase for the 24th consecutive year.

Despite these gains, the company flagged financial risks regarding the F-35 program. While Lockheed Martin finalized a decade-long framework deal with the Department of Defense for at least 850 jets and $7 billion in industrial base spending, costs for the Lot 20 advance acquisition contract have exceeded current funding. The company warned that without additional U.S. government authorization, these overruns will negatively impact future financial results. Additionally, the company absorbed unfavorable profit adjustments on the F-16, C-130, Heavy Lift, and Seahawk programs during the quarter.