Q3 2026 Results Beat Expectations

Lockheed Martin reported third-quarter 2026 results that beat expectations with revenue rising 11% year-over-year to $20.7 billion.

Earnings Per Share and Free Cash Flow

Earnings per share climbed 15% to $7.97, and the company generated $3 billion in free cash flow.

Record Backlog Growth

The company's backlog swelled to a record $292 billion, up $113 billion from the prior-year period.

Book-to-Bill Ratio

This represents a book-to-bill ratio of 4x, indicating strong demand for the company's products.

Full-Year Guidance Raised

Lockheed Martin raised full-year 2026 guidance for sales, profit, and cash for the second consecutive quarter.

Missiles and Fire Control Segment

The Missiles and Fire Control segment saw sales and profit surge 24% year-over-year as production ramps on key munitions programs.

CEO's 'Permanent' Demand Statement

CEO Jim Taiclet described the demand environment as 'permanent,' driven by geopolitical tensions.

“permanent, resulting in a business that is resilient through any budget cycle”

Munitions Investment Commitment

The company is investing over $8 billion through 2030 to expand munitions capacity and modernize more than 20 facilities.

F-35 Multi-Year Agreement

Lockheed Martin secured a multi-year F-35 agreement cementing its role as the free world's key front-line fighter for years ahead.

“cements its role as the free world's key front-line fighter for years ahead”

PAC-3 Contract Details

The company signed a seven-year PAC-3 contract worth up to $58.6 billion, building on a seven-year THAAD agreement.

Full-Year 2026 Sales Guidance

Lockheed Martin now expects sales of $80 billion to $82 billion, representing approximately 8% growth at the midpoint.

2027 Revenue Growth Outlook

CFO Evan Scott said all four segments are expected to grow revenue in 2027 with high single-digit growth.

Vectis Autonomous Aircraft

Lockheed Martin will build five Vectis aircraft with its own investment to offer a production-ready autonomous aircraft.

Geopolitical Demand Drivers

CEO Jim Taiclet cited geopolitical tensions, including Russia's designs on Europe, Iran's goals in the Middle East, and China's production rates.

“the only way i think it's feasible to maintain an effective deterrent is to maintain a strong national defense”