Lockheed Martin Corporation (NYSE:LMT) reported first-quarter results that fell short of analyst expectations, with shares declining 4% in pre-market trading following the release.
The defense contractor posted adjusted earnings per share of $6.44 on revenue of $18.0 billion, missing consensus estimates of $6.74 and $18.26 billion, respectively. Revenue was unchanged compared to $18.0 billion in the first quarter of 2025.
Net earnings declined to $1.5 billion from $1.7 billion in the prior-year period.
Despite the quarterly miss, Lockheed Martin reaffirmed its full-year 2026 guidance, projecting revenue between $77.5 billion and $80.0 billion. The midpoint of $78.75 billion aligned with analyst expectations. The company also forecast diluted earnings per share of $29.35 to $30.25 and free cash flow of $6.5 billion to $6.8 billion.
Business segment operating profit decreased by $262 million, or 13%, to $1.8 billion, primarily due to lower profit adjustments in the Aeronautics segment and the absence of favorable prior-year items. The Aeronautics division recorded $125 million in unfavorable profit adjustments related to the F-16 program, driven by production challenges and development delays.
