Lockheed Martin Q3 Sales Rise 11% to $20.71 Billion, EPS $7.97; Backlog Hits Record $292 Billion as Company Raises Full-Year Outlook Again
BETHESDA, Md. — Lockheed Martin reported third-quarter 2026 results on Thursday, October 22, in a release distributed by PR Newswire. For the quarter ended September 27, 2026, sales were $20.711 billion, up 11% from $18.609 billion a year earlier; net earnings were $1.845 billion, up 14% from $1.619 billion; and diluted earnings per share were $7.97, compared with $6.95 a year earlier.
Business segment operating profit was $2.229 billion and consolidated operating profit $2.443 billion in the quarter. Cash from operations was $3.438 billion, capital expenditures $439 million, and free cash flow $2.999 billion. The company's backlog rose to a record of about $292 billion at quarter-end.
All four business segments grew sales year over year in the quarter: Aeronautics rose 13%, Missiles and Fire Control rose about 24%, Rotary and Mission Systems rose 3%, and Space rose 4%.
The company raised its 2026 outlook for the second consecutive quarter, lifting the sales range to $80 billion-$82 billion from $79.75 billion-$81.75 billion, and the earnings-per-share range to $30.35-$30.75 from $29.95-$30.65.
"In the third quarter each of our four segments posted growth year-over-year, sales topped $20.7 billion and net earnings exceeded $1.8 billion, increases of 11% and 14% respectively," Chairman, President and CEO Jim Taiclet said in the release. "We delivered $3 billion of free cash flow in the quarter, and increased our backlog to a record $292 billion, allowing us to raise our dividend for the 24th year in a row. The sustained financial momentum across our portfolio gives us confidence to increase our outlook for sales, earnings per share and free cash flow, the second consecutive quarter we have raised our financial guidance."
Results came in above consensus (about $20.44 billion in sales and $7.52 in earnings per share had been expected). Backlog rose 27% sequentially to $291.98 billion, driven by a $52.5 billion multi-year award for PAC-3 MSE interceptors; Missiles and Fire Control growth reflected higher PAC-3 and THAAD production, and Aeronautics growth came from the F-35 and C-130 programs. The company also raised its full-year free cash flow outlook to $7.8 billion-$8 billion from $7.0 billion-$7.2 billion, and disclosed a 10-year framework agreement with the U.S. Department of War covering 850 U.S. F-35 fighters. It noted that negotiations with the U.S. government over F-35 Lot 20 and later production contracts are continuing, and that future operations and cash flow could be affected if authorization and funding are not received. Shares rose roughly 6% to 7% on October 22.
Published by GSM · USA (original Chinese edition)
Photo: 图：F-35「闪电II」各机型在佛罗里达州埃格林空军基地附近编队飞行（2014年资料图）。照片：美国空军 Katerina Slivinske 上士，公共领域，经Wikimedia Commons。F-35 Lightning II variants in flight near Eglin Air Force Base, Florida, in 2014 (file photo). Photo: U.S. Air Force photo by Staff Sgt. Katerina Slivinske, public domain, via Wikimedia Commons.
