01—Abstract
Summary
Summary of the 10-Q filed October 22, 2026. Cited figures are marked; the original filing is the authoritative source.
Lockheed Martin Corporation (LMT) reported strong financial results for the nine months ended September 27, 2026, demonstrating significant revenue growth and improved profitability.
Total sales increased by 7.4% year-over-year to $58.8 billiona, driven by robust performance across all segments, particularly Aeronautics and Missiles and Fire Control. Net earnings saw a substantial increase of 40.7% to $5.2 billion, translating to diluted earnings per share of $22.36, up from $15.69 in the prior year period. This growth reflects effective cost management, favorable profit adjustments, and increased volumes on key programs.
The company's financial position remains solid, with total assets growing to $64.5 billionb and a healthy operating profit of $7.0 billion for the nine-month period. Cash flow from operations was strong at $6.9 billion, contributing to an increase in cash and cash equivalents to $6.0 billion.
The company also highlighted its commitment to returning value to shareholders through dividends, with an announced increase in the fourth quarter dividend. Management continues to navigate supply chain challenges and inflationary pressures, while benefiting from strong demand for its defense and aerospace products and services, particularly from U.S. government and international allies.
02—Key points
Key Highlights
- Total sales for the nine months ended September 27, 2026, increased by 7.4% to $58.8 billion compared to the same period in 2025.
- Net earnings for the nine months increased by 40.7% to $5.2 billion, with diluted EPS rising to $22.36 from $15.69.
- Operating profit for the nine months grew significantly to $7.0 billion, up from $5.4 billion in the prior year.
- Cash provided by operating activities for the nine months was strong at $6.9 billion, an increase from $5.3 billion in the prior year.
- The company's ending cash and cash equivalents increased to $6.0 billion as of September 27, 2026.
- Aeronautics and Missiles and Fire Control segments showed significant sales and operating profit growth.
- The company announced an increase in its fourth quarter dividend to $3.60 per share.
03—Questions
Frequently Asked Questions
What were the primary drivers of the significant increase in net earnings?
The significant increase in net earnings was driven by higher sales across most business segments, particularly Aeronautics and Missiles and Fire Control, which benefited from increased production volumes and favorable profit adjustments. The resolution of certain programs that incurred substantial losses in the prior year also contributed to the year-over-year improvement in net earnings.
How is Lockheed Martin managing supply chain challenges and inflationary pressures?
Lockheed Martin is actively managing supply chain challenges and inflationary pressures by working closely with suppliers, securing materials through long-term contracts, identifying alternative sources, collaborating with customers on industry-wide solutions, and optimizing its supply chain operations. The company also aims to mitigate cost increases through operational efficiency improvements and cost competitiveness initiatives.
What is the company's outlook regarding U.S. Government funding and its impact?
The U.S. Government budget environment, particularly defense spending, remains a key factor. While the FY2027 Defense topline request shows a significant increase, congressional appropriations and shifting priorities could impact funding levels. Lockheed Martin is working with the U.S. Government to increase industry capacity to meet long-term demand, including through multi-year contracts for critical programs like PAC-3 MSE and THAAD.
What are the implications of the pending acquisition of Ultra Maritime Solutions?
The acquisition of Ultra Maritime Solutions for $3.45 billion is expected to close in the fourth quarter of 2026 and will be reported within the RMS business segment. This strategic move aims to enhance Lockheed Martin's capabilities in advanced undersea warfare and anti-submarine solutions, aligning with the growing defense needs of allied naval forces.
04—Continue