Lockheed Martin (LMT) · Aerospace
Lockheed Martin Q2 2026 earnings: summary, key numbers & outlook
Results filed 23 Jul 2026 · Quarter ended 28 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Sales increase of 11% to $20.1 billion; net earnings of $1.8 billion, or $7.94 per share; cash from operations of $3.2 billion and free cash flow of $2.9 billion.
Lockheed Martin's second-quarter sales rose 11% to $20.1 billion, with growth in all four segments. Net earnings were $1.8 billion, or $7.94 per share, versus $342 million, or $1.46 per share, a year earlier, when $1.6 billion of program losses weighed on results. Free cash flow was $2.9 billion, and backlog hit a record $230 billion after a multi-year THAAD interceptor contract.
Management raised its 2026 outlook: sales of about $79,750 to $81,750 million, diluted EPS of about $29.95 to $30.65, and free cash flow of about $7,000 to $7,200 million. The tension is execution: munitions ramps must keep delivering, F-35 deliveries fell to 19 from 50 a year ago, and the Ultra Maritime acquisition is not included in guidance.
Key numbers
- Sales · GAAP
- $20.1 billion
- Net earnings · GAAP
- $1.8 billion
- Diluted earnings per share · GAAP
- $7.94
- Consolidated operating profit · GAAP
- $2.5B
- Cash from operations · GAAP
- $3.2 billion
- Free cash flow · non-GAAP
- $2.9 billion
- Business segment operating profit · non-GAAP
- $2.2B
- Total backlog
- $230 billion
up 11% from a year ago
compared to $342 million in the second quarter of 2025
compared to $1.46 in the second quarter of 2025
compared to $748 in the second quarter of 2025
compared to $201 million in the second quarter of 2025
compared to $(150) million in the second quarter of 2025
up 279% from a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Aeronautics sales | $8.1B | up 9% |
| Missiles and Fire Control sales | $4.1B | up 19% |
| Rotary and Mission Systems sales | $4.4B | up 9% |
| Space sales | $3.5B | up 6% |
| Aeronautics operating margin | 9.4% | compared to (1.3%) a year ago |
| Missiles and Fire Control operating margin | 14.5% | compared to 14.0% a year ago |
| F-35 deliveries in the quarter | 19 | compared to 50 a year ago |
| Missiles and Fire Control backlog | $87.9B | compared to $46,650 at Dec. 31, 2025 |
Where each number comes from
- Sales: “today reported second quarter 2026 sales of $20.1 billion, compared to $18.2 billion in the second quarter of 2025.”
- Net earnings: “Net earnings in the second quarter of 2026 were $1.8 billion, or $7.94 per share, compared to $342 million, or $1.46 per share”
- Diluted earnings per share: “Net earnings in the second quarter of 2026 were $1.8 billion, or $7.94 per share, compared to $342 million, or $1.46 per share”
- Consolidated operating profit: “Total unallocated items | 317 | 177 | 557 | 464 Consolidated operating profit | $2,479 | $748 | $4,542 | $3,120 Net earnings | $1,836 | $342”
- Cash from operations: “Cash from operations was $3.2 billion in the second quarter of 2026, compared to $201 million in the second quarter of 2025.”
- Free cash flow: “Free cash flow was $2.9 billion in the second quarter of 2026, compared to $(150) million in the second quarter of 2025.”
- Business segment operating profit: “Business segment operating profit1 | $2,162 | $571 | $3,985 | $2,656 Unallocated items FAS/CAS pension operating adjustment | 422 | 379 | 843 | 758”
- Total backlog: “$65 billion of new orders, which takes our backlog to a record $230 billion.”
- Aeronautics sales: “Aeronautics | $8,112 | $7,420 | 9% | $15,065 | $14,477 | 4% Missiles and Fire Control | 4,101 | 3,433 | 19% | 7,750 | 6,806 | 14%”
- Missiles and Fire Control sales: “Aeronautics | $8,112 | $7,420 | 9% | $15,065 | $14,477 | 4% Missiles and Fire Control | 4,101 | 3,433 | 19% | 7,750 | 6,806 | 14%”
- Rotary and Mission Systems sales: “Rotary and Mission Systems | 4,354 | 3,995 | 9% | 8,345 | 8,323 | —% Space | 3,496 | 3,307 | 6% | 6,924 | 6,512 | 6%”
- Space sales: “Rotary and Mission Systems | 4,354 | 3,995 | 9% | 8,345 | 8,323 | —% Space | 3,496 | 3,307 | 6% | 6,924 | 6,512 | 6%”
- Aeronautics operating margin: “Operating margin Aeronautics | 9.4% | (1.3%) | 9.2% | 4.3% Missiles and Fire Control | 14.5% | 14.0% | 14.1% | 13.9%”
- Missiles and Fire Control operating margin: “Operating margin Aeronautics | 9.4% | (1.3%) | 9.2% | 4.3% Missiles and Fire Control | 14.5% | 14.0% | 14.1% | 13.9%”
- F-35 deliveries in the quarter: “Aircraft Deliveries | June 28,2026 | June 29,2025 | June 28,2026 | June 29,2025 F-35 | 19 | 50 | 51 | 97”
- Missiles and Fire Control backlog: “Missiles and Fire Control | 87,882 | 46,650 Rotary and Mission Systems | 48,454 | 47,715 Space | 39,724 | 39,822 Total backlog | $230,416 | $193,622”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $20.1B | +10.5% | +11.3% |
| Operating income | $2.5B | +231.4% | +20.2% |
| Net income | $1.8B | +436.8% | +23.4% |
| Diluted EPS | $7.94 | +443.8% | +23.3% |
| Free cash flow | $2.9B | — | — |
| Gross margin | 12.2% | +8.2 pts | +0.7 pts |
| Operating margin | 12.4% | +8.3 pts | +1.0 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Sales | 2026 | ~$79,750 - $81,750 |
| Business segment operating profit | 2026 | ~$8,500 - $8,700 |
| Diluted earnings per share | 2026 | ~$29.95 - $30.65 |
| Cash from operations | 2026 | ~$9,200 - $9,400 |
| Capital expenditures | 2026 | ~$2,000 - $2,400 |
| Free cash flow | 2026 | ~$7,000 - $7,200 |
Key takeaways
Every segment grew sales in the quarter
Sales rose 11% to $20.1 billion, driven by Missiles and Fire Control up 19%, Aeronautics up 9%, Rotary and Mission Systems up 9% and Space up 6%.
Prior-year program losses explain the profit rebound
Net earnings rose to $1.8 billion from $342 million, a year that included $1.6 billion of program losses. Business segment operating profit rose 279%.
THAAD contract lifts backlog to a record
Backlog reached $230 billion, with Missiles and Fire Control backlog at $87,882 million versus $46,650 million at Dec. 31, 2025, including a $35 billion multi-year THAAD contract.
Full-year guidance was raised across key measures
Free cash flow is now projected at about $7,000 - $7,200 million, up from $6,500 - $6,800 million in April. Diluted EPS is now about $29.95 - $30.65.
F-35 deliveries dropped sharply year over year
F-35 deliveries were 19 in the quarter versus 50 a year ago, though F-35 production sales were higher by $475 million.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $18.6B * |
| Q1 2025 | $18.0B |
| Q2 2025 | $18.2B |
| Q3 2025 | $18.6B |
| Q4 2025 | $20.3B * |
| Q1 2026 | $18.0B |
| Q2 2026 | $20.1B |
| Q3 2026 | $20.7B |
Data
| Q1 2025 | $7.28 |
| Q2 2025 | $1.46 |
| Q3 2025 | $6.95 |
| Q1 2026 | $6.44 |
| Q2 2026 | $7.94 |
| Q3 2026 | $7.97 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 3.7% |
| Q1 2025 | 13.2% |
| Q2 2025 | 4.1% |
| Q3 2025 | 12.3% |
| Q4 2025 | 11.5% |
| Q1 2026 | 11.4% |
| Q2 2026 | 12.4% |
| Q3 2026 | 11.8% |
Data
| Q4 2024 | $441.0M |
| Q1 2025 | $955.0M |
| Q2 2025 | -$150.0M |
| Q3 2025 | $3.3B |
| Q4 2025 | $2.8B |
| Q1 2026 | -$291.0M |
| Q2 2026 | $2.9B |
| Q3 2026 | $3.0B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Lockheed Martin's Q2 2026 results?
Sales rose 11% to $20.1 billion and net earnings were $1.8 billion, or $7.94 per share, versus $342 million, or $1.46 per share, a year earlier. Cash from operations was $3.2 billion and free cash flow was $2.9 billion.
Did Lockheed Martin raise its 2026 guidance?
Yes. Sales guidance is now about $79,750 - $81,750 million (from $77,500 - $80,000 million), diluted EPS about $29.95 - $30.65, and free cash flow about $7,000 - $7,200 million.
Why did earnings jump so much from a year ago?
The prior-year quarter included $1.6 billion of reach-forward losses on a classified Aeronautics program, the Canadian Maritime Helicopter Program and the Turkish Utility Helicopter Program. Munition ramps at Missiles and Fire Control also added profit.
What is Lockheed Martin's backlog?
Total backlog was $230,416 million at June 28, 2026, up from $193,622 million at Dec. 31, 2025. Missiles and Fire Control backlog nearly doubled to $87,882 million.
What are the main risks?
F-35 deliveries were 19 versus 50 a year ago, and Rotary and Mission Systems saw unfavorable profit adjustments on Heavy Lift and Seahawk. Guidance also excludes the proposed Ultra Maritime acquisition until it is consummated.
Documents
SEC filing