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what it is
Lockheed Martin builds fighter jets, missiles, military electronics, and space systems mostly for the U.S. government.
how it gets paid
Last year Lockheed Martin made $75.0B in revenue. Aeronautics was the main engine at $30.3B, or 40% of sales.
why it's growing
Revenue grew 5.6% last year. $194B matters most because backlog → future booked work → so what: it gives Lockheed years of demand cover even if headlines cool off.
what just happened
Lockheed closed the latest quarter with $7.43 in profit per share, beating the $6.68 estimate by 11.23%.
At a glance
A balance sheet — strong enough to weather a downturn
90/100 earnings predictability — you can trust these numbers
22.7x trailing p/e — priced about right
2.2% dividend yield — cash in your pocket every quarter
38.5% return on capital — every dollar works hard here
xvary composite: 80/100 — above average
What they do
Lockheed Martin builds fighter jets, missiles, military electronics, and space systems mostly for the U.S. government.
More than 70% of sales come from the U.S. government, according to the company profile. That means you are not betting on consumer taste; you are betting on long contracts, budgets, and programs that are painful to replace. The order pile hit $194 billion in 2025, so customers are already lined up years ahead.
How they make money
$75.0B
annual revenue · their business grew +5.6% last year
Aeronautics
$30.3B
Rotary and Mission Systems
$17.8B
Missiles and Fire Control
$13.3B
Space
$15.6B
The products that matter
builds aircraft, missiles, and space systems
aerospace and defense systems
$75.0B revenue · $194B backlog
this snapshot does not break out segment revenue, so the useful number is the whole machine: $75.0B in sales supported by a $194B backlog. you are buying scale, program depth, and long contract cycles.
2.6x backlog to sales
Key numbers
$194B
order pile
Backlog → booked future work → so what: customers already committed to more than 2.5 years of revenue at the current $75.0B sales run rate.
38.5%
capital return
Return on capital → profit from each dollar invested → so what: this is a very efficient business for a heavy industrial contractor.
16.5%
operating margin
Operating margin → profit before interest and taxes on each sales dollar → so what: Lockheed keeps 16.5 cents before financing costs on every $1 of revenue.
2.2%
dividend yield
Dividend yield → cash paid to you each year relative to share price → so what: you get paid to wait, but the payout is not the main reason to own it.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 85 / 100
- long-term debt $20.5B (12% of capital)
- net profit margin 11.0% — keeps 11 cents of every dollar in revenue
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in LMT 3 years ago → it's now worth $14,690.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Lockheed closed the latest quarter with $7.43 in profit per share, beating the $6.68 estimate by 11.23%.
Management said production improved, and the 2025 order pile climbed to $194 billion. That is the quiet part: demand is not the issue, execution is.
$54.7B
revenue
$7.43
profit per share
9.7%
gross margin
the number that mattered
$194B matters most because backlog → future booked work → so what: it gives Lockheed years of demand cover even if headlines cool off.
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lockheed martin’s backlog supports a favorable growth outlook.
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that key measure of demand stepped up to $194 billion in 2025.
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the f-35 fighter jet program has received backing from u.s. defense authorities and congress.
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management has done a good job of improving production.
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european and other western allies are keen to add more of these aircraft to their arsenals.
source: company earnings report, 2026
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What could go wrong
the #1 risk is u.s. and allied defense budget dependence.
med
defense budget dependence
This is still a government-funded business. If procurement priorities shift, the pressure lands on orders, backlog, and sentiment at the same time.
100% of the $75.0B revenue base depends on defense customers continuing to spend.
med
f-35 execution risk
The F-35 is a strategic asset and a headline magnet. Delays, cost issues, or delivery friction would travel straight from operations into investor confidence.
The snapshot does not break out F-35 revenue, which is the point: you know the program matters, but the exact exposure here is thinner than we would like.
med
valuation above target midpoint
The current price is $652.58. The published 3–5 year target midpoint is $603. When a quality stock outruns the midpoint, the next leg needs earnings to do the talking.
Analysts already model $30.00 of fy2026 EPS and $33.00 for 2027. If those numbers stall, the stock has less room to shrug it off.
med
legal and program oversight
A securities lawsuit is already part of the backdrop. In defense, legal noise rarely stays just legal if it starts raising questions about disclosure or execution.
We do not have settlement size or timing in this snapshot, so the honest takeaway is uncertainty, not false precision.
$75.0B of revenue and $194B of backlog both trace back to government priorities. That makes this a high-quality business with a very political customer base.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarterly print
watch whether EPS stays near the current $6.95 quarterly run rate and whether management keeps the demand story tied to real delivery progress.
backlog
$194B backlog trend
a backlog this large is the bull case in one number. flat is acceptable. down is a message.
estimate
fy2026 EPS at $30.00
the stock already assumes roughly $30.00 this year and $33.00 next year. if those estimates slip, valuation gets less forgiving.
program risk
f-35 delivery and policy headlines
follow production updates, congressional backing, and allied orders. this name can look stable until one flagship program stops cooperating.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they still like the stock.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks. This is defense, not a rollercoaster.
chart momentum
average
technical score 3 — the stock is acting normal. No euphoric breakout, no obvious breakdown.
earnings predictability
90 / 100
management usually delivers a narrow range of outcomes. For you, that lowers the odds of dramatic quarterly surprises.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 1,100 buyers vs. 1,263 sellers in 3q2025. total institutional holdings: 0.2B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$418
$788
$653
current price
$603
target midpoint · 8% from current · 3-5yr high: $950 (+45% · 12% ann'l return)
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