LMT Stock Soars as Lockheed Martin Raises Annual Forecast

Lockheed Martin (LMT) shares soared on Thursday after the defense and aerospace manufacturer came in handily above Street estimates for its fiscal Q2 and raised its guidance for the full year. Management now expects robust defense spending (globally) to boost its revenue to about $80.75 billion in 2026 on earnings per share (EPS) of at least $29.95. 

Despite post-earnings gains, Lockheed Martin stock remains down about 17% versus its year-to-date high. 

Does the Q2 Print Warrant Buying Lockheed Martin Stock?

Lockheed saw broad-based acceleration across its primary divisions that drove an 11% year-over-year increase in its Q2 revenue. 

Investors loaded up on LMT shares today also because the firm’s free cash flow rebounded sharply to $2.9 billion, indicating a successful recovery from prior-year program losses and supply chain headwinds. 

Crucially, the Nasdaq-listed company secured $65 billion in new orders in its fiscal Q2, expanding its overall backlog to an all-time high of $230 billion. 

For investors, this record order intake and improving margins demonstrate durable multi-year cash flow visibility, underpinning sustained capital returns and long-term earnings growth. 

Note that Lockheed Martin currently pays a rather healthy 2.42% dividend yield. 

Where Options Data Suggests LMT Shares Are Headed

While Lockheed Martin shares have already staged an exciting comeback in recent weeks, options pricing suggests they are not out of juice just yet. 

According to Barchart’s data, the put-to-call ratio on contracts expiring in early January currently sits at 0.67x, signaling a bullish skew for the remainder of this year. 

At the time of writing, the upper price on those contracts is set at nearly $645, indicating potential for a more than 14% upside in LMT over the next six months. 

Options traders’ optimism is mirrored in the company’s technicals as well. Lockheed currently sits decisively above its major moving averages (MAs), with an RSI in the late 60s reinforcing intense buying pressure. 

How Wall Street Recommends Playing Lockheed Martin

Investors should also note that Wall Street continues to recommend owning LMT stock in 2026.

The consensus rating on Lockheed Martin is currently a “Moderate Buy,” with the mean price target of about $611 suggesting potential for a 7% rally from here.