Lockheed Martin | 8-K: FY2026 Q3 Revenue: USD 20.71 B

Revenue: As of FY2026 Q3, the actual value is USD 20.71 B, compared to the market estimate of USD 20.46 B.

EPS: As of FY2026 Q3, the actual value is USD 7.97, compared to the market estimate of USD 7.5177.

EBIT: As of FY2026 Q3, the actual value is USD 2.443 B.

Overall Financial Performance (Third Quarter 2026 vs. Third Quarter 2025)

• Sales: Lockheed Martin Corporation reported sales of $20.7 billion, an 11% increase from $18.6 billion in the third quarter of 2025.
• Net Earnings: Net earnings increased 14% to $1.8 billion, compared to $1.6 billion in the prior year quarter.
• Consolidated Operating Profit: Consolidated operating profit was $2,443 million, up from $2,280 million.
• Business Segment Operating Profit: Business segment operating profit increased by $200 million to $2,229 million.
• Cash Flow from Operations: Cash from operations decreased by $290 million to $3,438 million.
• Free Cash Flow: Free cash flow decreased by $348 million to $2,999 million.
• Backlog: The company achieved a record backlog of $292.0 billion, including $52.5 billion related to the PAC-3 Missile Segment Enhancement (MSE) interceptor award, representing a 27% growth since the second quarter of 2026.
• Operating Costs and Expenses: Operating costs and expenses were - $18,275 million, compared to - $16,369 million.
• Gross Profit: Gross profit was $2,436 million, up from $2,240 million.
• Effective Tax Rate: The effective income tax rate decreased to 15.1% from 16.5%.

Overall Financial Performance (Nine Months Ended September 27, 2026 vs. September 28, 2025)

• Sales: Sales for the nine months ended September 27, 2026, were $58,795 million, compared to $54,727 million in the prior year period.
• Net Earnings: Net earnings were $5,169 million, up from $3,673 million.
• Consolidated Operating Profit: Consolidated operating profit increased to $6,985 million from $5,400 million.
• Business Segment Operating Profit: Business segment operating profit was $6,214 million, compared to $4,685 million.
• Cash Flow from Operations: Cash from operations was $6,893 million, an increase from $5,338 million.
• Free Cash Flow: Free cash flow increased to $5,625 million from $4,152 million.
• Capital Expenditures: Capital expenditures were - $1,268 million, compared to - $1,186 million.
• Operating Costs and Expenses: Operating costs and expenses were - $51,835 million, compared to - $49,430 million.
• Gross Profit: Gross profit was $6,960 million, up from $5,297 million.
• Effective Tax Rate: The effective income tax rate was 15.6%, compared to 16.4%.

Segment Revenue and Operating Profit (Third Quarter 2026 vs. Third Quarter 2025)

Aeronautics

• Sales: Sales increased by $958 million, or 13%, to $8,214 million, primarily due to higher volume on F-35 production and sustainment contracts, and C-130 program sales.
• Operating Profit: Operating profit increased by $61 million, or 9%, to $743 million.
• Operating Margin: Operating margin was 9.0%, down from 9.4%.

Missiles and Fire Control

• Sales: Sales increased by $877 million, or 24%, to $4,501 million, driven by production ramps in integrated air and missile defense programs (PAC-3 and THAAD) and tactical and strike missile programs (GMLRS and PrSM).
• Operating Profit: Operating profit increased by $121 million, or 24%, to $631 million.
• Operating Margin: Operating margin was 14.0%, slightly down from 14.1%.

Rotary and Mission Systems

• Sales: Sales increased by $138 million, or 3%, to $4,511 million, mainly due to higher volume on Sensors, Effectors & Mission Systems (SEMS) radar programs.
• Operating Profit: Operating profit increased by $18 million, or 4%, to $524 million, benefiting from a favorable profit adjustment on a contracting matter, partially offset by unfavorable adjustments on Heavy Lift and Seahawk programs.
• Operating Margin: Operating margin remained stable at 11.6%.

Space

• Sales: Sales increased by $129 million, or 4%, to $3,485 million, primarily from higher volume on Fleet Ballistic Missile (FBM) and Next Generation Interceptor (NGI) programs, partially offset by lower sales for national security space programs.
• Operating Profit: Operating profit was comparable at $331 million.
• Operating Margin: Operating margin was 9.5%, down from 9.9%.

Operational Metrics

• Aircraft Deliveries (Q3 2026 vs Q3 2025):
  • F-35: 43 units vs 46 units.
  • F-16: 4 units vs 5 units.
  • C-130J: 2 units vs 0 units.
  • Government helicopter programs: 16 units vs 22 units.
  • Commercial helicopter programs: 0 units vs 1 unit.
  • International military helicopter programs: 7 units vs 6 units.

2026 Financial Outlook

Lockheed Martin Corporation updated its 2026 financial outlook, raising its guidance for sales, earnings per share, and free cash flow. The company now projects sales between ~$80,000 million and $82,000 million, and cash from operations between ~$10,000 million and $10,200 million. This leads to an increased free cash flow outlook of ~$7,800 million to $8,000 million.