What to Expect From Lockheed Martin’s Next Quarterly Earnings Report

Lockheed Martin Corporation (LMT) is one of the world's largest aerospace and defense companies, specializing in the design, development, and production of advanced military aircraft, missiles, missile defense systems, space technologies, and mission-critical technologies. The company also provides a broad range of defense, security, and aerospace solutions to the U.S. government and allied nations worldwide. Headquartered in Bethesda, Lockheed Martin operates across four primary business segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.

Currently valued at approximately $125.87 billion, Lockheed Martin is set to report its fiscal 2026 second-quarter results before the market opens on Thursday, July 23. Heading into the release, Wall Street expects the defense giant to post earnings of $7.28 per share, representing a marginal decline from the year-ago quarter. The company has a solid track record of outperforming expectations, having beaten analysts' bottom-line estimates in three of the last four quarters, with just one miss during that period.

Looking beyond the upcoming quarter, analysts forecast full-year fiscal 2026 EPS of $29.88, reflecting 4.8% year-over-year growth. Earnings are expected to climb further in fiscal 2027, with EPS projected to rise another 7.8% to $32.22.

Lockheed Martin has delivered solid gains over the past year, although it has trailed the broader market and its industrial peers. The stock has advanced 18% over the past 12 months, compared with the S&P 500 Index's ($SPX) 20.2% return and the State Street Industrial Select Sector SPDR ETF's (XLI) 24.1% gain during the same period.

Lockheed Martin's fiscal 2026 first-quarter results, released on April 23, painted a mixed picture and initially disappointed investors. The defense contractor reported net sales of $18.02 billion, nearly flat from a year earlier and below Wall Street's $18.12 billion estimate. Earnings also fell short of expectations, with net income of $6.44 per share declining from $7.28 per share in the prior-year quarter and missing the consensus forecast of $6.67.

However, sentiment shifted on July 2, when the stock surged about 4.6% after Citi upgraded Lockheed Martin to "Buy". The rally was further fueled by the company's announcement of a series of major defense contract wins, reinforcing confidence in its business momentum and long-term growth prospects.

Wall Street remains cautiously optimistic about Lockheed Martin's outlook. The stock carries a consensus "Moderate Buy" rating based on recommendations from 23 analysts, including eight "Strong Buy" ratings, 14 "Hold" calls, and one "Strong Sell" recommendation. The average price target of $618.64 implies a potential upside of 13.3% from current levels.