Lockheed Martin raises 2026 outlook as U.S. weapons restocking boosts demand

Traders Union
All News
Financial News
Lockheed Martin 2026 outlook

Highlights

Lockheed Martin raises its 2026 revenue forecast to $79.75 billion–$81.75 billion and profit outlook to $29.95–$30.65 per share, both above analyst estimates.
Missiles and fire control revenue surges nearly 20% to $4.1 billion, driven by PAC-3, Precision Strike, and THAAD production expansion, including a $35 billion government contract.
Backlog climbs 38.3% year-on-year to $230.4 billion as U.S. weapons demand rises sharply due to conflicts in Ukraine and Iran.

Forecast upgrade driven by missile and aircraft demand

As reported by Reuters, Lockheed Martin raises its 2026 sales and profit forecasts as the Pentagon seeks to replenish weapons stockpiles depleted by the Russia-Ukraine conflict and the U.S.-Israeli war on Iran.

Shares of the Bethesda, Maryland-based company rise 7% in premarket trading. President Donald Trump has been urging defense contractors to increase production as ongoing conflicts continue to strain Pentagon inventories.

Revenue in Lockheed's missiles and fire control business rises nearly 20% to $4.1 billion, helped by higher production of PAC-3 and Precision Strike missiles. The unit also benefits from increased output of THAAD missile interceptors after the company signs a $35 billion contract with the U.S. government in June to quadruple production.

Sales in the aeronautics segment rise 9%, partly supported by higher production volume and sales of F-35 stealth fighters. The F-35 remains the Pentagon's largest acquisition program, with lifetime costs estimated at more than $2 trillion to buy, operate and sustain the aircraft.

Backlog growth strengthens defense sector outlook

Demand is expected to remain strong, with Pentagon data showing the U.S. has used more than 50,000 rockets, missiles and rocket-propelled munitions from the start of the Russia-Ukraine conflict in 2022 through the U.S. attack on Iran.

Lockheed's total backlog grows to $230.4 billion, up 38.3% from $166.5 billion a year earlier. The company now expects 2026 revenue of $79.75 billion to $81.75 billion, above its earlier forecast of $77.5 billion to $80 billion and ahead of analysts' average estimate of $79.14 billion, according to LSEG data.

It also expects full-year earnings of $29.95 to $30.65 per share, compared with an earlier range of $29.35 to $30.25 per share. That is above Wall Street estimates of $29.90 per share.

For the second quarter, the company reports profit of $7.94 per share, compared with $1.46 a year earlier, when results were hit by a $1.6 billion charge tied to difficulties in the Aeronautics unit and international helicopter programs in the Sikorsky segment.

RTX’s higher 2026 outlook and expanding backlog showed how sustained demand for missile systems and aircraft maintenance is lifting revenue and profit expectations across the aerospace and defense sector. Our earlier article noted that governments are rebuilding weapons inventories depleted by recent conflicts, while airlines keep older jets flying longer due to delivery delays—both trends supporting multi-year order pipelines.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.