With a market cap of $130.1 billion, Lockheed Martin Corporation (LMT) is a global aerospace and defense technology giant that develops advanced military aircraft, missile and air-defense systems, helicopters, naval and undersea technologies, radar and command systems, and space-based platforms. Headquartered in Bethesda, Maryland, the company primarily serves the U.S. government and allied nations, with defense and national-security programs at the core of its business.
Lockheed Martin has been flying above the broader market. LMT stock has gained 26% over the past 52 weeks, while the broader S&P 500 Index ($SPX) has rallied 20.5%. The defense giant has maintained that edge in 2026, returning 16.5% on a YTD basis, compared to SPX’s 12.1% rise.
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Focusing more closely, shares of the company have also outpaced the Invesco Aerospace & Defense ETF’s (PPA) 19.3% increase over the past year and 10.9% rise in 2026.
www.barchart.com On July 23, shares of aerospace and defense giant Lockheed Martin soared 10.8% after the company delivered a strong second-quarter performance that topped Wall Street’s expectations. Revenue increased 10.5% year over year to $20.06 billion, while earnings came in at $7.94 per share, up 443.8% from the year-ago quarter, as robust demand for its defense platforms and munitions fueled growth across the business. It also generated an impressive $2.92 billion in free cash flow during the quarter.
The company also strengthened its long-term growth outlook, booking $65 billion in new orders during the quarter and ending the period with a record $230.4 billion backlog. Buoyed by this momentum, Lockheed Martin raised its full-year 2026 guidance, forecasting sales of $79.75 billion to $81.75 billion, EPS of $29.95 to $30.65, and free cash flow of $7 billion to $7.2 billion.
For the fiscal year ending in December 2026, analysts expect LMT’s EPS to grow 6.6% year over year to $30.39. The company's earnings surprise history is mixed. It topped the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 23 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, 14 “Holds,” and one “Strong Sell.”
www.barchart.com Notably, the bullish camp has strengthened, with “Strong Buy” recommendations rising from seven two months ago to eight today.
On Aug. 17, Citi’s John Godyn struck a more bullish tone on Lockheed Martin, raising his price target to $691 from $641 while reiterating a “Buy” rating. Following the latest Q2 earnings reports, Godyn said defense stocks appear to have bottomed and could see momentum surprise to the upside into the fall, reflecting Citi’s increasingly optimistic view of the aerospace and defense sector.
The mean price target of $637.04 represents a 13% premium to LMT’s current price levels. The Street-high price target of $775 suggests a 37.5% potential upside.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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