Lockheed lifts outlook on record $292bn backlog

Unbranded pilot gear in a secure hangar, evoking strong results and outlook for LMT, RTX and NOC defense stocks

Key Points

01Lockheed Martin (LMT) stock jumped 9% to $602.75 after Q3 results and guidance
02Backlog hit a record $292 billion, including $52.5 billion for PAC-3 MSE
032026 sales guidance raised to $80–$82 billion, with higher EPS and FCF
04RTX (RTX) and Northrop Grumman shares also gained following raised forecasts

Lockheed shares surge on upgraded 2026 outlook

Lockheed Martin (LMT) shares rose 9% to $602.75 on Thursday after the company reported third-quarter 2026 results that topped expectations and raised its full-year outlook. The company now projects 2026 sales of $80 billion to $82 billion, earnings of $30.35 to $30.75 per share, and free cash flow of $7.8 billion to $8.0 billion. The upgraded guidance marked the second consecutive quarter of increases and was supported by a record order book. The positive update helped lift sentiment across the U.S. defense sector, with RTX (RTX) and Northrop Grumman also advancing.

RTX shares gained 2% to $195.54, while Northrop Grumman stock advanced 3%. All three companies raised forecasts this week, reflecting strong demand for munitions, air-defense systems and military aircraft. The moves came against a broader market backdrop in which major aerospace and defense stocks outperformed large equity benchmarks on the day.

Record $292 billion backlog underpins revenue visibility

Lockheed Martin’s total backlog climbed 27% sequentially to a record $292 billion. This backlog includes about $52.5 billion tied to a multi-year award for PAC-3 Missile Segment Enhancement interceptors. The company described the backlog as a key driver of improved confidence in its multiyear outlook for sales, earnings and cash generation.

The PAC-3 MSE award reflects strong demand for missile-defense systems such as PAC-3 and THAAD interceptors. Stockpiles of these systems have been heavily used by U.S. and allied forces, supporting higher orders. Lockheed Martin also announced a 10-year framework with the U.S. Department of War covering 850 U.S. F-35 aircraft, spare parts, modification kits and maintenance support, further adding to long-term program visibility.

The company reported a book-to-bill ratio of 4 for the quarter, indicating that new orders significantly exceeded quarterly sales. This ratio highlights the pace at which incoming contracts are expanding the backlog relative to current revenue, reinforcing the company’s capacity for sustained future growth within its existing program portfolio.

Third-quarter earnings driven by missiles and aeronautics

For the quarter ended September 27, 2026, Lockheed Martin generated sales of $20.7 billion, up 11% year over year. Net earnings were $1.8 billion, or $7.97 per share.

Profit for the quarter rose 14%.

Lockheed Martin ended the quarter with $5.960 billion in cash and equivalents and $20.498 billion in long-term debt. The company said the strength of its order book supported raising the dividend for the 24th consecutive year, alongside the increases to sales, earnings per share and free cash flow guidance for 2026.

Key Takeaways

01Lockheed Martin (LMT)’s upgraded 2026 guidance is anchored in a record $292 billion backlog and a strong book-to-bill ratio, pointing to solid multi-year revenue visibility.
02Missile-defense and fighter-jet demand, including PAC-3, THAAD and F-35 programs, are central to the company’s recent sales growth and outlook increases.
03The share price jump, combined with gains in RTX (RTX) and Northrop Grumman, underscores how improved defense spending expectations are supporting the broader U.S. defense sector.

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