The escalating situation in the Middle East has led the government to take some fortifying steps. President Donald Trump's administration has invited the top defense contractors of the country, including aerospace and defense giant Lockheed Martin (LMT), to the White House on March 6. The Pentagon is pushing the defense industry to accelerate its weapons output as the U.S. heightens its military operations against Iran and its defense stockpile comes under pressure.
Earlier in the year, Lockheed Martin landed a framework agreement with the Department of War to quadruple the production of Terminal High Altitude Area Defense (THAAD) interceptors. The company also broke ground on its new Munitions Acceleration Center in Arkansas.
Given this backdrop, let's look into Lockheed Martin and LMT stock a bit more deeply.
About Lockheed Martin Stock
Lockheed Martin is a global aerospace and defense company that designs, builds, and supports advanced military and space systems, including aircraft, missiles, satellites, and security technologies. The company is headquartered in Bethesda, Maryland.
Lockheed Martin is affected today by rising global defense spending, geopolitical tensions, and pressure to modernize air and space platforms, while also facing scrutiny over budget overruns, supply‑chain constraints, and workforce and cybersecurity challenges. The firm has a market capitalization of $152.8 billion.
Rising global defense spending and higher demand for missiles and interceptors amid geopolitical turmoil — alongside the company’s solid cash flow generation, strong defense backlog, and robust 2026 outlook — have rewarded LMT stock. Over the past 52 weeks, LMT stock has gained 41%, while shares are up 34% year-to-date (YTD). The company’s shares reached a 52-week high of $692 on March 2, but are now down 6% from that level.
On a forward-adjusted basis, Lockheed Martin’s price-to-earnings (P/E) ratio of 22.4 times is higher than the industry average of 20.8 times. LMT stock has shown strong momentum, trading above its 50-day and 200-day moving averages since December 2025.
Lockheed Martin’s Q4 Results Were Better Than Expected
On Jan. 29, Lockheed Martin reported its fourth-quarter results for fiscal 2025. As the results were better than expected, LMT stock grew more than 4% intraday. The company’s Q4 revenue increased 9% year-over-year (YOY) to $20.32 billion, exceeding the $19.83 billion that Wall Street analysts had expected.
Lockheed's Aeronautics segment reported the largest revenue out of all the company's segments, raking in $8.52 billion. However, the Missiles and Fire Control segment grew the fastest, climbing 18% YOY to $4.02 billion.
Lockheed Martin’s total consolidated operating profit grew by a staggering 235% YOY to $2.33 billion, as the Missiles and Fire Control segment turned a $535 million operating profit during the quarter. As of Dec. 31, the company had a record backlog of $193.62 billion, with the Aeronautics segment at $59.44 billion and the Missiles and Fire Control segment at $46.65 billion. Fourth-quarter EPS more than doubled YOY, reaching $5.80 on a diluted basis.
Wall Street analysts have a mixed view of Lockheed Martin’s future earnings. They expect EPS to drop by 3.4% YOY to $7.03 for the current quarter. However, for fiscal 2026, EPS is projected to surge 4.5% annually to $29.81, followed by 8.6% growth to $32.36 in fiscal 2027.
What Do Analysts Think About LMT Stock?
Last month, Citigroup analyst John Godyn maintained a “Neutral” rating on LMT stock and kept a price target of $673. Earlier in the month, Citigroup had lifted its price target from $572 after Lockheed Martin announced its profit-sharing deal with the U.S. government and reported Q4 results.
Early in February, Goldman Sachs analyst Noah Poponak maintained a “Sell” rating on LMT stock but raised the price target from $464 to $517. Meanwhile, UBS maintained a “Neutral” rating but raised its target from $580 to $663. UBS cited accelerating growth this year and likely growth in 2027, as the company's deals in the Missiles and Fire Control division provide a clear view into return on investments. However, analysts also believe that the company continues to overearn on pensions.
Finally, back in January, Jefferies reiterated a “Hold” rating on LMT and a $540 price target.
Lockheed Martin has long been a popular name on Wall Street, with analysts awarding it a consensus “Moderate Buy” rating overall. Of the 23 analysts rating the stock, seven have a “Strong Buy” rating, 15 analysts take a middle-of-the-road approach with a “Hold,” and one analyst offers a “Strong Sell” rating. The consensus price target of $640.28 represents 1.5% potential downside from current levels. However, the Street-high price target of $775 indicates 19% potential upside from here.
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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