EL7.AI
StocksMedium•22 October 2026•
4 min read

Lockheed Martin Raises 2026 Sales Forecast to $80–82 Billion

Key Facts

1Lockheed Martin raised its 2026 sales forecast to $80–82 billion, from $79.75–81.75 billion in its July update.
2The backlog at the end of the third quarter totaled $292.0 billion, including $52.5 billion tied to the interceptor missile contract.
3The company raised its 2026 free cash flow forecast to $7.8–8 billion, from $7–7.2 billion previously.
4Third-quarter revenue rose 11% to $20.71 billion, exceeding analysts' expectations of $20.48 billion.
5The aircraft framework covers 850 U.S. aircraft over 10 years, in addition to international orders.

Lockheed Martin raised its 2026 sales forecast to between $80 billion and $82 billion, according to its financial update released with third-quarter results on October 22, alongside higher earnings and free cash flow estimates. The company had forecast annual sales of between $79.75 billion and $81.75 billion in its July update. It raised its full-year diluted earnings per share forecast to between $30.35 and $30.75. The revision also included annual free cash flow guidance, now between $7.8 billion and $8 billion. July estimates for free cash flow ranged from $7 billion to $7.2 billion. The annual guidance increases thus covered sales, earnings per share and cash flow, according to the figures in the company's update.

Lockheed Martin's revenue reached $20.71 billion in the third quarter of 2026, according to Dow Jones Newswires' reporting on the results. Revenue rose 11% from the same period a year earlier. It exceeded analysts' expectations of $20.48 billion, according to the news agency. Results published by the company showed diluted earnings per share of $7.97 for the quarter. Earnings per share in the corresponding period a year earlier were $6.95. Free cash flow generated in the third quarter alone totaled $3.0 billion, according to the company's earnings disclosure.

Business growth was supported by increased missile production and higher aeronautics revenue, according to Reuters. The missiles segment recorded sales growth of 24% in the third quarter of 2026. The news agency attributed the increase to higher production of PAC-3 missiles and the THAAD system, while aeronautics revenue rose 13%. At the end of the quarter, Lockheed Martin's backlog reached a record $292.0 billion, according to its earnings statement. That backlog includes $52.5 billion tied to a multiyear contract to produce PAC-3 MSE interceptors. The missile contract is thus among the components of the backlog the company announced alongside its quarterly results.

In a separate announcement, Lockheed Martin unveiled a framework agreement for multiyear production and operational support of F-35 aircraft. The company said the framework covers 850 aircraft for the United States over 10 years, in addition to international orders. It aims to maintain the program's production rate at 156 aircraft annually, according to its statement, and also includes initial spare parts, modification kits and operational support. Lockheed Martin will self-fund initiatives supporting the program worth at least $7 billion, according to a U.S. Department of War statement cited by Reuters. This funding concerns initiatives supporting the aircraft program under the announced arrangement. Reuters said that "the agreement does not constitute a purchase order," while the final contract award remains contingent on completion of government requirements.

The company has previously signed multiyear defense contracts, as Chief Executive Jim Taiclet outlined in its July 2026 earnings disclosure. Taiclet said the company had signed "a $35 billion multiyear contract with the Missile Defense Agency for the THAAD program." In the stock market, the July 23 earnings announcement produced an actual move of 10.5% in Lockheed Martin's share price, according to a report published by Investing.com in mid-October. The implied move reflected in options prices for that announcement was 4.0%. This comparison concerns the previous July earnings announcement, which the report examined as part of its coverage of the stock ahead of the October results.

The next step in the aircraft framework awaits multiyear authorization in the coming months, according to Lockheed Martin's statement dated October 22, 2026. Implementation of the arrangement also depends on securing the appropriations accompanying that authorization. The final contract award and completion of its pricing, terms and schedules will remain contingent on obtaining these approvals and funding, according to the company. On financial results, Lockheed Martin scheduled its quarterly earnings conference call for October 22, 2026, at 8:30 a.m. Eastern Time. The company said the call would be available on a listen-only basis.