Q1 26 EPS
$6.44
Q1 26 Revenue
$18.02B
vs S&P Since Q1 26
-9.8%
TRAILING MARKET
LMT -8.1% vs S&P +1.7%
Market Reaction
Did LMT Beat Earnings? Q1 2026 Results
Lockheed Martin kicked off 2026 on a disappointing note, posting first-quarter earnings of $6.44 per diluted share and missing the Wall Street consensus of $6.70 by 3.88%, as a wave of unfavorable profit booking rate adjustments weighed heavily on ma… Read more Lockheed Martin kicked off 2026 on a disappointing note, posting first-quarter earnings of $6.44 per diluted share and missing the Wall Street consensus of $6.70 by 3.88%, as a wave of unfavorable profit booking rate adjustments weighed heavily on margins. Revenue of $18.02 billion was essentially flat, up just 0.3% from the year-ago period, while net earnings slid to $1.49 billion from $1.71 billion a year earlier, with segment operating margins compressing from 11.6% to 10.1%. The primary culprit was a string of program-level charges, most notably $125.00 million in unfavorable adjustments on the F-16 driven by production performance issues and development delays, compounding pressure from the C-130, CH-53K, and Seahawk programs. Cash flow added to the concern, with operating cash plunging to $220.00 million from $1.41 billion a year ago, producing negative free cash flow of $291.00 million. Ahead of the print, shares had already come under pressure on investor anxiety over the results. Despite the weak quarter, management reaffirmed full-year 2026 guidance for sales of $77.50 billion to $80.00 billion and diluted EPS of $29.35 to $30.25.
Key Takeaways
- • PAC-3 integrated air and missile defense production ramp-up drove MFC sales growth of 8%
- • Higher volume on Fleet Ballistic Missile and NGI programs drove Space sales growth of 7%
- • F-35 sustainment contract volume partially offset Aeronautics declines
- • Lower net profit booking rate adjustments reduced segment operating profit by 13%
- • Unfavorable F-16 profit adjustments of $125 million due to production performance and development delays
- • Working capital timing drove operating cash flow decline from $1.4 billion to $220 million
LMT Forward Guidance & Outlook
Lockheed Martin reaffirmed its full-year 2026 financial outlook: sales of $77,500–$80,000 million, business segment operating profit of $8,425–$8,675 million, diluted EPS of $29.35–$30.25, cash from operations of $9,150–$9,450 million, capital expenditures of $2,500–$2,800 million, and free cash flow of $6,500–$6,800 million. This implies anticipated sales and operating profit growth of approximately 5% and 25% year-over-year, respectively. The total FAS/CAS pension adjustment is expected to be approximately $1,365 million and consolidated operating profit is projected at $9,435–$9,685 million.
LMT YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
LMT Revenue by Segment
With YoY comparisons, source: SEC Filings
“Lockheed Martin's superior capabilities in delivering advanced defense technology and systems and in space exploration have been proven again and again in 2026. Our Orion spacecraft safely carried the crew farther from Earth than ever before during NASA's historic Artemis II mission, concluding with a precisely executed re-entry and splashdown. Our superior fifth generation fighter jets, the F-35 and F-22, continue to operate with great effectiveness in contested and difficult missions. Additionally, our layered missile defense architecture, including phased array radars, Aegis integrated command and control system, and the THAAD and advanced Patriot Missile interceptors, protected both military assets and civilians.”
— Jim Taiclet, Q1 2026 Earnings Press Release
LMT Earnings Trends
LMT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
LMT EPS Trend
Earnings per share: estimate vs actual
LMT Revenue Trend
Quarterly revenue: estimate vs actual
LMT Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $6.44 | — | $18.02B | — |
| Q4 25 BEAT FY | $5.75 | $5.80 | +0.87% | $20.32B | — |
| FY Full Year | $21.46 | $21.49 | +0.14% | $75.05B | +0.62% |
| Q3 25 BEAT | $6.35 | $6.95 | +9.45% | $18.61B | +0.47% |
| Q2 25 MISS | $6.57 | $1.46 | -77.79% | $18.16B | -2.30% |
| Q1 25 BEAT | $6.31 | $7.28 | +15.30% | $17.96B | +0.89% |