- Lockheed Martin (NYSE: LMT) surpassed Wall Street's earnings and sales estimates for Q3 2026.
- The company demonstrated significant revenue and net earnings growth, achieving a record backlog of $292.00 billion.
- Despite strong earnings, cash from operations and free cash flow experienced a decline during the quarter.
Lockheed Martin (NYSE: LMT) is a defense company that makes military aircraft, missiles, and other systems. Its third-quarter 2026 results, released on October 22, beat Wall Street’s estimates: earnings are $7.97 per share versus the expected $7.52, while sales are $20.70 billion versus about $20.50 billion.
Sales are up 11% from a year earlier. Net earnings rise 14% to $1.80 billion, or $7.97 per share, compared with $6.95 per share a year ago. The results show growth in both revenue and profit, not just a beat against analysts’ estimates.
Lockheed Martin’s backlog reaches a record $292.00 billion, up 27% from the second quarter. Backlog represents orders the company has received but has not yet completed. It includes $52.50 billion tied to a multiyear award for PAC-3 missile interceptors, giving Lockheed Martin a large base of future work.
Cash from operations falls to $3.40 billion from $3.70 billion, while free cash flow declines to $3.00 billion from $3.30 billion. Free cash flow is the cash left after spending on equipment and other long-term assets. These declines show that higher earnings do not translate into higher cash flow this quarter.
Lockheed Martin raises its annual forecast as missile and jet production increases, as highlighted by Reuters. The supplied report does not give the revised figures. Lockheed Martin trades at 19.51 times trailing earnings and 1.61 times sales; those ratios compare its share price with its past-year profit and revenue, respectively.
