Lockheed Martin raises 2026 outlook again as backlog hits record $292 billion

Lockheed Martin raised its full-year outlook for the second straight quarter after sales jumped 11% and a $52.5 billion missile award helped push its order backlog to a record $292 billion.

The defense contractor now expects 2026 sales of about $80.0 billion to $82.0 billion, up from $79.75 billion to $81.75 billion, and EPS of about $30.35 to $30.75, up from $29.95 to $30.65, according to the earnings release it filed with an 8-K on Thursday. It lifted its free cash flow forecast to about $7.8 billion to $8.0 billion from $7.0 billion to $7.2 billion.

Third-quarter sales rose to $20.7 billion from $18.6 billion. Net earnings increased 14% to $1.8 billion, or $7.97 a share, compared with $6.95 a year earlier.

Backlog surge

Backlog grew 27% from the second quarter to $292.0 billion, including $52.5 billion tied to a multi-year award to produce PAC-3 Missile Segment Enhancement interceptors.

All four segments grew. Aeronautics sales rose to $8.2 billion from $7.3 billion, and Missiles and Fire Control climbed to $4.5 billion from $3.6 billion.

"We delivered $3 billion of free cash flow in the quarter, and increased our backlog to a record $292 billion, allowing us to raise our dividend for the 24th year in a row," Chairman, President and CEO Jim Taiclet said in the release.

F-35 contract risk

The company flagged that it is still negotiating with the U.S. government on production contracts for F-35 lots 20 and higher. Its costs began to exceed the current contractual authorization and funding on the Lot 20 advance acquisition contract during the quarter, and without more authorization and funding, its results, cash flows and financial condition "will be negatively impacted in future periods," the release said.

By the numbers

• Sales: $20.7 billion, up 11%
• EPS: $7.97, versus $6.95
• Free cash flow: $3.0 billion
• Backlog: $292.0 billion, a record
• 2026 EPS outlook: about $30.35 to $30.75

Sources

1. Lockheed Martin Corporation, Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 22, 2026, accession 0001628280-26-066780

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