Lockheed Martin Raises 2026 Forecast Amid Surging Weapon Demand

Lockheed Martin Corporation raised its full-year 2026 sales guidance to between $79.75 billion and $81.75 billion following second-quarter results that exceeded analyst expectations. The company reported revenue of $20.1 billion, an 11% year-over-year increase, and net earnings of $1.8 billion. Growth was primarily driven by surging demand for munitions and missile systems to replenish stockpiles depleted by conflicts in Ukraine and Iran.

The company achieved a record backlog of approximately $230.4 billion, a 38.4% increase from the previous year. This growth was bolstered by a $35 billion multi-year contract with the Missile Defense Agency to quadruple the production of THAAD interceptors. Free cash flow also saw a significant recovery, rising from a negative $150 million last year to $2.9 billion.

These results align with broader industry trends, as RTX Corporation also raised its 2026 adjusted sales forecast to between $95 billion and $96 billion. The surge in defense spending coincides with President Donald Trump's proposal for a $1.5 trillion military budget for fiscal 2027 and a House-passed defense policy bill authorizing $1.15 trillion in spending. Following the announcement, Lockheed Martin shares rose between 5.6% and 10.6%.