Lockheed Martin Raises 2026 Outlook on Missile and Fighter Jet Demand

Lockheed Martin raised its full-year sales, profit and free cash flow forecasts on Thursday after third-quarter earnings rose on strong demand for missile defense systems and fighter jets amid ongoing geopolitical conflicts. The company now expects 2026 sales of about $80 billion to $82 billion, up from a prior forecast of $79.75 billion to $81.75 billion. It lifted its annual earnings-per-share forecast to $30.35 to $30.75 from $29.95 to $30.65, and raised its free cash flow outlook to about $7.8 billion to $8 billion from $7 billion to $7.2 billion. Backlog rose 27% sequentially to a record $292 billion, boosted by a $52.5 billion multi-year award for PAC-3 Missile Segment Enhancement interceptors. Third-quarter sales for the period ended September 27 rose 11% to $20.71 billion, with missiles unit revenue up 24% and aeronautics up 13%. Profit increased 14% to $1.85 billion, or $7.97 per share. Lockheed warned it remains in negotiations with the U.S. government over F-35 Lots 20 and higher production contracts, and said future operations and cash flow could be affected without additional contractual authorization and funding.