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LMT · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Lockheed Martin Corp. (LMT) stock moving?
Lockheed's fundamentals remain strong. The Oct 22 Q3 report showed sales up 11% to $20.7B, net earnings up 14% to $1.8B ($7.97 per share), free cash flow of $3.0B, and a record backlog of $292.0B that includes a $52.5B PAC-3 MSE award. Management raised 2026 guidance for the second straight quarter and lifted the dividend for the 24th consecutive year. The stock responded with a rally from $589.91 to a $657 intraday high on Oct 30. Newsflow since then has been mostly contract-driven: a $1.08B Mexico Blackhawk approval, a Sikorsky selection in South Korea, a $122.4M Navy Trident support award, the NGI ground-equipment subcontract, a 100,000th GMLRS rocket milestone, and a Guggenheim initiation at Buy with a $735 target. The main overhang is political. Democratic midterm wins on Nov 4 raised doubts about future defense funding, and the stock fell on 3.07M shares, then slid to a $567.08 close on Nov 6. A $29.5M DOJ settlement adds a minor legal headline. Shares have since recovered to a $603.12 close on Nov 10, but on the lighter volume of 915,769 shares, so the rebound is not yet confirmed by volume. Key reference levels in the data are the Nov 6 low near $567 and the late-October zone around $636 to $657. Near term, the policy-funding debate is likely to dominate. Over the coming months, the backlog and guidance should support earnings visibility, and the longer-term view depends on how defense budgets evolve after the midterms.
News behind the analysis
- Lockheed Martin Reaches GMLRS Production MilestonesLockheed has delivered its 100,000th GMLRS rocket and reached an accelerated production rate of nearly 14,000 units a year.
- Teledyne Technologies Awarded Subcontract for Lockheed Martin's Next Generation Interceptor ProgramTeledyne Brown Engineering received a Lockheed subcontract to supply ground support equipment for the Next Generation Interceptor missile defense program.
- NASA Updates List of Companies Eligible for $10 Billion Lunar Deliveries ContractsLockheed Martin is among the qualified providers eligible to bid for up to $10 billion in 10-year CLPS lunar delivery contracts.
- Lockheed Martin's Sikorsky Selected for South Korea Presidential Helicopter ProgramSikorsky was chosen to supply S-92A+ helicopters for the Republic of Korea Air Force's Presidential Helicopter II program.
- U.S. State Dept Approved Potential Sale Of UH-60M Blackhawk Helicopters To Mexico For An Estimated $1.08BThe U.S. State Department approved a potential sale of UH-60M Blackhawk helicopters to Mexico estimated at $1.08 billion.
- Lockheed Martin Awarded $122.4 Million U.S. Navy ContractLockheed secured a $122.4 million Navy contract to support the Strategic Weapon System Trident fleet.
- Lockheed Martin, RTX, Northrop Stocks Fall After Democratic Midterm Sweep Raises Questions Over Trump's Defense Spending Plan, While Ukraine Bonds Rally (Updated)Defense stocks including Lockheed fell as Democratic midterm wins raised concerns about future defense funding.
- Lockheed Martin to Pay $29.5 Million to Settle DOJ Discrimination ClaimsLockheed agreed to a $29.5 million settlement with the Department of Justice over alleged discrimination against white workers.
- Guggenheim Initiates Coverage on Lockheed Martin With Buy RatingGuggenheim initiated coverage on Lockheed with a Buy rating and a $735 price target.
About Lockheed Martin Corp.
Lockheed Martin is the world's largest defense contractor by revenue. It builds the F-35 fighter jet, PAC-3 and THAAD missile interceptors, Black Hawk helicopters (through Sikorsky), satellites and NASA's Orion capsule. It expects about $81 billion in sales for 2026, and its order backlog reached a record of about $292 billion in Q3 2026.
How it makes money
It earns most of its money from long-term government contracts. The US government provides roughly 70% of sales, and much of the rest comes from foreign military sales and allied governments. It reports four segments. Aeronautics is the largest, at roughly 40% of sales, driven mostly by F-35 production and maintenance. Missiles and Fire Control (PAC-3, THAAD, GMLRS, hypersonic weapons) and Rotary and Mission Systems (Sikorsky helicopters, Aegis, radars) each bring in roughly 20%. Space (satellites, missile-defense and nuclear-deterrent work, Orion) makes up the remaining roughly 15–20%. These shares are approximate.
What usually moves LMT
- US defense budget and Pentagon appropriations
- F-35 production volumes, upgrades and maintenance deals
- Demand for missiles and interceptors from conflicts and allied rearmament
- Profit charges or cost overruns on fixed-price programs
- Free cash flow, dividends and share buybacks