Lockheed Martin (NYSE:LMT) Shares Gap Up on Earnings Beat

Shares of Lockheed Martin Corporation (NYSE:LMT) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $551.51, but opened at $579.51. Lockheed Martin shares last traded at $588.8430, with a volume of 803,560 shares.

The aerospace company reported $7.97 earnings per share for the quarter, beating the consensus estimate of $7.52 by $0.45. Lockheed Martin had a return on equity of 91.42% and a net margin of 8.16%. The firm’s revenue for the quarter was up 11.3% on a year-over-year basis. During the same period in the prior year, the company posted $6.95 earnings per share.

Lockheed Martin Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 1st will be given a $3.60 dividend. This is an increase from Lockheed Martin’s previous quarterly dividend of $3.45. This represents a $14.40 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Tuesday, December 1st. Lockheed Martin’s dividend payout ratio (DPR) is 50.87%.

Trending Headlines about Lockheed Martin

Here are the key news stories impacting Lockheed Martin this week:

• Positive Sentiment: Quarterly results exceeded expectations. Third-quarter sales rose 11% year over year to $20.7 billion, while net earnings increased 14% to $1.85 billion, or $7.97 per share. EPS surpassed analyst estimates near $7.49–$7.52, and all four business segments posted sales growth, led by a 24% increase in Missiles and Fire Control. Lockheed Martin Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management raised its 2026 outlook. Lockheed now expects approximately $80.0 billion to $82.0 billion in sales and diluted EPS of $30.35 to $30.75, signaling confidence in production growth and program execution. Lockheed Lifts Annual Forecast
• Positive Sentiment: Record backlog supports long-term visibility. Total backlog reached approximately $292.0 billion, including $52.5 billion tied to the multiyear PAC-3 Missile Segment Enhancement interceptor award. The company also reported $3.4 billion in operating cash flow and $3.0 billion in free cash flow. Lockheed Martin Third Quarter 2026 Financial Results
• Positive Sentiment: F-35 production plans add another catalyst. Lockheed and the Pentagon reached an initial framework for producing 850 F-35 jets, potentially improving manufacturing scale, supply-chain efficiency and future program revenue. Lockheed and Pentagon F-35 Production Agreement
• Neutral Sentiment: Recent filings indicate insider and congressional selling of LMT shares, though these transactions appear less important to the immediate move than the earnings beat, raised guidance and record backlog.

Wall Street Analysts Forecast Growth

LMT has been the subject of several research reports. Sanford C. Bernstein cut their price target on Lockheed Martin from $629.00 to $564.00 and set a “market perform” rating for the company in a research note on Wednesday, October 14th. Royal Bank Of Canada lowered their price objective on shares of Lockheed Martin from $600.00 to $550.00 and set a “sector perform” rating on the stock in a research note on Thursday, October 15th. Jefferies Financial Group restated a “hold” rating on shares of Lockheed Martin in a report on Wednesday, September 2nd. Vertical Research upgraded shares of Lockheed Martin from a “hold” rating to a “buy” rating and set a $600.00 target price for the company in a research report on Wednesday, October 14th. Finally, UBS Group restated a “buy” rating and set a $653.00 target price on shares of Lockheed Martin in a research report on Friday, October 16th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $627.10.

Institutional Trading of Lockheed Martin

A number of large investors have recently made changes to their positions in LMT. State Street Corp lifted its holdings in Lockheed Martin by 1.3% in the 2nd quarter. State Street Corp now owns 32,975,170 shares of the aerospace company’s stock valued at $16,799,530,000 after purchasing an additional 419,582 shares in the last quarter. BlackRock Inc. acquired a new stake in shares of Lockheed Martin during the 2nd quarter worth about $9,617,574,000. Corient Private Wealth LP acquired a new stake in shares of Lockheed Martin during the 2nd quarter worth about $101,960,000. Bank of New York Mellon Corp purchased a new stake in shares of Lockheed Martin during the second quarter worth about $645,258,000. Finally, Legal & General Group Plc purchased a new stake in shares of Lockheed Martin during the second quarter worth about $497,469,000. Institutional investors and hedge funds own 74.19% of the company’s stock.

Lockheed Martin Trading Up 7.2%

The business’s fifty day moving average price is $538.78 and its 200 day moving average price is $542.10. The company has a quick ratio of 1.01, a current ratio of 1.19 and a debt-to-equity ratio of 2.34. The firm has a market capitalization of $136.49 billion, a PE ratio of 21.80, a P/E/G ratio of 1.18 and a beta of 0.09.

About Lockheed Martin

Lockheed Martin Corporation is a global security and aerospace company headquartered in Bethesda, Maryland. Formed in 1995 through the merger of Lockheed Corporation and Martin Marietta, the company develops and produces advanced defense, aerospace, and technology systems for government and commercial customers.

Its principal business areas include Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. Products and services include military aircraft such as the F-35 Lightning II, C-130 Hercules, and F-16 Fighting Falcon; missile-defense and precision-strike systems; helicopters and naval systems; command, control, communications, and intelligence technologies; satellites; space exploration systems; and other classified space and defense programs.

Lockheed Martin serves the U.S.