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StocksMediumUpdated×4•Originally published 22 October 2026•Updated 23 October 2026•
4 min read

Lockheed Martin Raises 2026 Sales Forecast to $82 Billion as Orders Grow 27%

Key Facts

1Third-quarter sales were $20.711 billion, up 11% from the same period in 2025.
2Backlog rose 27% from the second quarter to a record $292 billion.
3The company raised its 2026 sales forecast to $80–82 billion, compared with $79.75–81.75 billion in July.
4Did quarterly free cash flow rise to $2.999 billion?
5The F-35 framework covers production of 850 U.S. aircraft over 10 years, at a rate of 156 aircraft a year.

Lockheed Martin raised its 2026 sales forecast to a range of $80–82 billion after posting third-quarter sales of $20.711 billion, up 11% from the same period in 2025. In results published on October 22, the company said all four of its segments recorded year-over-year growth and that it was raising its financial outlook for a second consecutive quarter. Net earnings were $1.845 billion, compared with $1.619 billion a year earlier, while diluted earnings per share rose to $7.97 from $6.95. Sales and earnings per share both topped estimates published ahead of the results, at $20.48 billion and $7.52 per share, respectively. The higher forecast reflects faster production across missile and fighter programs, alongside a record backlog.

Sales in the Missiles and Fire Control segment expanded 24% year over year, with a $480 million increase in integrated air and missile defense programs, particularly Patriot PAC-3 and THAAD. Tactical and strike missile programs, including GMLRS and PrSM, added $330 million to sales compared with the third quarter of 2025. In Aeronautics, sales rose 13%, with a $710 million increase in F-35 production and sustainment services accounting for most of the segment's growth. C-130 program sales also contributed an increase of $270 million, the company said. Reuters linked demand for missile defense systems and fighter aircraft to ongoing geopolitical conflicts, while Chief Executive Jim Taiclet said combining existing systems with digital innovation and modern technologies could "drive high growth in financial performance."

The company raised its 2026 diluted earnings-per-share forecast to about $30.35–30.75, compared with a range of $29.95–30.65 in July. It also increased its annual free cash flow forecast to $7.8–8 billion from $7–7.2 billion, and its forecast for cash from operations to $10–10.2 billion from $9.2–9.4 billion. But third-quarter free cash flow was $2.999 billion, down from $3.347 billion a year earlier, while cash from operations fell to $3.438 billion from $3.728 billion. Backlog stood at $292 billion at the end of the quarter, up 27% from the second quarter and a record level, according to the disclosure. The backlog gives the company a large base of business, while its conversion into sales and cash flow remains tied to production and funding levels.

On the F-35, the company announced a 10-year framework on October 22 covering 850 U.S. aircraft and international customer orders for Lots 21 through 30, with production continuing at 156 aircraft a year. Reuters reported that the framework is not itself a sales order and requires approval from the U.S. Congress. The company said contract terms, pricing and schedules would be set if Congress approves the multiyear purchase and provides funding in the coming months. This comes as Lockheed said costs incurred in the third quarter began to exceed the current authorization and funding for the Lot 20 advance procurement contract. It warned that failure to provide additional authorization and funding would adversely affect its results, cash flows and financial position in future periods.

The higher forecast coincided with a strong move in the stock on October 22; Reuters reported that shares rose as much as 10% in trading, while closing data showed they ended at $589.91, up from $551.51 in the previous session, or about 7.0%. Chief Financial Officer Evan Scott also told Reuters that increased capital spending in the fourth quarter would be directed mainly toward expanding munitions production capacity. Reuters said the F-35 framework also includes $7 billion in investment in the industrial base. On dividends, the company approved a quarterly payment of $3.60 per share for the fourth quarter, an increase of $0.15 from the previous quarter. It is scheduled to be paid on December 31 to shareholders of record on December 1; the third-quarter results call, held on October 22, is the latest earnings event listed on the investor calendar at the time it was viewed.