Lockheed Martin Q2 Results Beat Expectations, Full-Year 2026 Guidance Raised
Taylor Wilson
Lockheed Martin posted Q2 EPS of $7.94, beating estimates by $0.74, on revenue of $20.6 billion — up 10.5% year-over-year — then raised full-year guidance. Shares jumped 7% pre-market.
How big was the beat?
Q2 EPS hit $7.94, topping Wall Street's estimate by $0.74. Revenue came in at $20.6 billion, beating consensus by $730 million.
A year ago, EPS was just $1.46 after a $1.6 billion write-down on the aeronautics and Sikorsky helicopter programs. This means → the year-over-year surge reflects both a low base and genuine operational improvement.
Shares rose 7% pre-market — the market's real-time verdict.
How much did the full-year guidance move?
Full-year revenue guidance raised to $79.5 billion–$81.75 billion, up from a prior range of $77.5 billion–$80 billion, and above the LSEG analyst consensus of $79.14 billion.
Full-year EPS guidance raised to $29.95–$30.65, up from $29.35–$30.25 and above the Street estimate of $29.90.
In plain terms = management is more confident about the second half than analysts are — both ends of the range moved up.
Why is the missiles business growing fastest?
Missiles & Fire Control revenue jumped nearly 20% year-over-year to $4.1 billion, the fastest-growing of the four segments.
The drivers: ramped production of PAC-3 interceptors — the core missile in the Patriot air-defense system — and precision-strike missiles. Both saw heavy use in recent U.S. military operations against Iran.
THAAD interceptor output — Terminal High Altitude Area Defense, designed to shoot down medium- and long-range ballistic missiles — is also climbing. In June the company signed a $35 billion contract committing to quadruple production rates.
What does the record backlog tell us?
Total backlog reached $230.4 billion, up 38.3% year-over-year, a new all-time high.
This means → at the current annual revenue run rate of roughly $80 billion, existing contracts alone represent nearly three years of work.
Since the start of the Russia-Ukraine conflict in 2022 through recent operations against Iran, the U.S. has consumed over 50,000 rockets, missiles, and rocket-boosted munitions. Replenishment demand is the structural force behind the backlog buildup.
What is the key risk to watch next?
The F-35 stealth fighter is the Pentagon's largest acquisition program, with lifetime procurement, operations, and maintenance costs estimated above $2 trillion. Aeronautics revenue grew 9% year-over-year, partly driven by higher F-35 output.
President Trump continues to push defense firms to expand capacity. This reflects political pressure and military demand reinforcing each other simultaneously.
In plain terms = orders are not the bottleneck — production capacity is. Whether Lockheed can deliver on the "quadruple output" commitment on schedule is the market's next key checkpoint.
Content is for reference only, not financial advice.