Security and Aerospace company Lockheed Martin (NYSE: LMT) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 10.5% year on year to $20.06 billion. The company’s full-year revenue guidance of $80.75 billion at the midpoint came in 2% above analysts’ estimates. Its GAAP profit of $7.94 per share was 10.3% above analysts’ consensus estimates.
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Lockheed Martin (LMT) Q2 CY2026 Highlights:
- Revenue: $20.06 billion vs analyst estimates of $19.33 billion (10.5% year-on-year growth, 3.8% beat)
- EPS (GAAP): $7.94 vs analyst estimates of $7.20 (10.3% beat)
- The company lifted its revenue guidance for the full year to $80.75 billion at the midpoint from $78.75 billion, a 2.5% increase
- EPS (GAAP) guidance for the full year is $30.30 at the midpoint, beating analyst estimates by 1.4%
- Operating Margin: 12.4%, up from 4.1% in the same quarter last year
- Free Cash Flow was $2.92 billion, up from -$150 million in the same quarter last year
- Backlog: $230.4 billion at quarter end, up 38.4% year on year
- Market Capitalization: $118.6 billion
Company Overview
Headquartered in Maryland, Famous for the F-35 aircraft, Lockheed Martin (NYSE: LMT) specializes in defense, space, homeland security, and information technology products.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, Lockheed Martin’s sales grew at a sluggish 2.9% compounded annual growth rate over the last five years. This was below our standards and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Lockheed Martin’s annualized revenue growth of 4.1% over the last two years is above its five-year trend, which is encouraging. 
Lockheed Martin also reports its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Lockheed Martin’s backlog reached $230.4 billion in the latest quarter and averaged 13% year-on-year growth over the last two years. Because this number is better than its revenue growth, we can see the company accumulated more orders than it could fulfill and deferred revenue to the future. This could imply elevated demand for Lockheed Martin’s products and services but raises concerns about capacity constraints. 
This quarter, Lockheed Martin reported year-on-year revenue growth of 10.5%, and its $20.06 billion of revenue exceeded Wall Street’s estimates by 3.8%.
Looking ahead, sell-side analysts expect revenue to grow 5.7% over the next 12 months. Although this projection implies its newer products and services will fuel better top-line performance, it is still below average for the sector.
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Operating Margin
Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.
Lockheed Martin has managed its cost base well over the last five years. It demonstrated solid profitability for an industrials business, producing an average operating margin of 11.6%.
Looking at the trend in its profitability, Lockheed Martin’s operating margin decreased by 1.6 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.
This quarter, Lockheed Martin generated an operating margin profit margin of 12.4%, up 8.2 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Lockheed Martin’s weak 1.1% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.
Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
For Lockheed Martin, EPS didn’t budge over the last two years, a regression from its five-year trend. We hope it can revert to earnings growth in the coming years.
In Q2, Lockheed Martin reported EPS of $7.94, up from $1.46 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Lockheed Martin’s full-year EPS to grow 15.1% from $27.13 to $31.23.
Key Takeaways from Lockheed Martin’s Q2 Results
We were impressed by how significantly Lockheed Martin blew past analysts’ revenue expectations this quarter. We were also glad its full-year revenue guidance exceeded Wall Street’s estimates. Zooming out, we think this was a solid print. The stock traded up 5.2% to $541.01 immediately after reporting.
Lockheed Martin may have had a good quarter, but does that mean you should invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
