Lockheed Martin Reports 11.3% Revenue Growth to $20.7 Billion in Latest Quarter

Lockheed Martin Corporation reported significant financial growth in its latest quarterly results, with total sales reaching $20.7 billion for the quarter ended September 27, 2026, a 11.3% increase from $18.6 billion in the same quarter of the previous year. For the nine months ending September 27, 2026, sales totaled $58.8 billion, up from $54.7 billion year-over-year. The company’s net earnings also rose to $1.8 billion, or $7.97 per diluted share, compared to $1.6 billion, or $6.95 per diluted share, in the prior year quarter. For the nine-month period, net earnings increased to $5.2 billion from $3.7 billion, reflecting a strong performance across its business segments.

The increase in revenue was driven primarily by the Aeronautics and Missiles and Fire Control (MFC) segments, which saw sales rise by 13% and 24%, respectively. Aeronautics reported sales of $8.2 billion, bolstered by higher production volumes of the F-35 and C-130 programs. MFC's sales of $4.5 billion were attributed to ramp-ups in integrated air and missile defense programs. The Rotary and Mission Systems (RMS) segment also contributed with $4.5 billion in sales, while the Space segment reported $3.5 billion, reflecting a 4% increase.

Lockheed Martin's operational costs increased in tandem with sales, totaling $18.3 billion for the quarter, up from $16.4 billion a year earlier. The company reported a gross profit of $2.4 billion, leading to an operating profit of $2.4 billion, which was an increase from $2.3 billion in the previous year. The overall operating margin remained stable at approximately 11.8%. The company also noted a significant increase in contract assets, which rose to $16.9 billion from $13.0 billion, indicating a growing backlog of unfulfilled orders.

Strategically, Lockheed Martin is poised for further growth with the planned acquisition of Ultra Maritime Solutions for $3.45 billion, expected to close in the fourth quarter of 2026. This acquisition aims to enhance Lockheed Martin's capabilities in advanced undersea warfare and anti-submarine operations. The company also reported a backlog of $292 billion, an increase of $61.6 billion from the previous quarter, primarily due to a multi-year award for the production of PAC-3 Missile Segment Enhancement interceptors.

Looking ahead, Lockheed Martin anticipates continued demand for its products and services, driven by global security needs and U.S. government defense spending. The company is actively managing supply chain challenges and inflationary pressures while focusing on increasing production capacity to meet long-term contracts. The outlook remains positive, with expectations for sustained revenue growth and profitability as it navigates the complexities of the defense market.