Lockheed Martin sales reach $20.711 billion, beating third-quarter forecasts
Key Facts
Lockheed Martin reported sales of $20.711 billion in the third quarter of 2026, exceeding forecasts published before the earnings release, according to the company's financial disclosure. Investing had cited analyst expectations for revenue of $20.48 billion for the same period in its quarterly earnings preview. The company posted quarterly net income of $1.845 billion and diluted earnings per share of $7.97, according to tables accompanying the earnings release. Earnings per share also exceeded the estimate of $7.52 per share for the third quarter published by Investing before the announcement. On operating profitability, the company's consolidated operating margin was 11.8%, compared with 12.3% in the third quarter of 2025. Its effective tax rate fell to 15.1% during the period from 16.5% in the corresponding quarter a year earlier. The revenue and earnings-per-share beats thus coincided with a lower operating margin, while the effective tax rate declined from its year-earlier level.
On contracts, Lockheed Martin's total backlog stood at $291.984 billion as of September 27, 2026, according to the company's financial disclosure. That balance includes a multiyear contract worth $52.5 billion to produce Patriot Advanced Capability Missile Segment Enhancement interceptors. The company included the contract's value in backlog during the third quarter, making interceptor production part of its recorded contracted business. On fighter aircraft deliveries, Lockheed Martin delivered 43 F-35 aircraft during the third quarter of 2026, according to the earnings tables. That compares with 46 aircraft of the same type delivered in the third quarter of 2025, marking a decline in deliveries from the corresponding period. Regarding production of these fighters, the company warned that its future results, cash flows and financial position could be affected if it did not obtain additional contractual authorization and funding. It explicitly linked the warning to working "without additional contractual authorization and funding," placing production funding needs among the financial risks cited alongside the results.
Before the earnings announcement, Lockheed Martin approved a quarterly cash dividend of $3.60 per share, according to the company's dividend announcement. The decision covers the cash dividend for the fourth quarter of 2026, setting the amount of the next payment to eligible shareholders. The company put the increase over the previous quarterly dividend at $0.15 per share, saying the new amount represented "an increase of $0.15." The move marks the 24th consecutive year in which Lockheed Martin has raised its cash dividend to shareholders, according to the same announcement. The dividend increase comes as third-quarter results showed free cash flow of $2.999 billion. Free cash flow was $3.347 billion in the third quarter of 2025, according to the comparison in the company's financial tables. Free cash flow thus declined year on year during the quarter as the run of annual dividend increases continued.
For the next payment, Lockheed Martin set December 1, 2026, as the record date for shareholders eligible for the dividend, according to the company's announcement. Shareholders of record on that date will qualify for the fourth-quarter dividend. The cash payment to those shareholders is scheduled for December 31, 2026. Each eligible share will receive the company's approved quarterly dividend of $3.60. The date for determining eligible shareholders therefore precedes the scheduled cash payment at the end of December.