Lockheed Martin Corp (NYSE:LMT) reported lower quarterly profit and negative free cash flow in its first quarter of fiscal 2026, as delays in key aircraft programs weighed on results despite steady demand across its defense portfolio. The company posted net earnings of $1.5 billion, or $6.44 per share, down from $1.7 billion a year earlier.
LMT's Q1 earnings miss estimates despite a slight sales rise, as mixed segment performance and lower cash flow shape results.
Lockheed Martin Corporation reported weaker-than-expected first-quarter results, with profit declining and cash flow turning negative, even as demand for its weapons systems remains strong amid heightened geopolitical tensions. The defense contractor posted quarterly profit of $1.49 billion for the period ended March 29, down from $1.71 billion a year earlier.
Although the revenue and EPS for Lockheed (LMT) give a sense of how its business performed in the quarter ended March 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Lockheed Martin (LMT) came out with quarterly earnings of $6.44 per share, missing the Zacks Consensus Estimate of $6.67 per share. This compares to earnings of $7.28 per share a year ago.
Lockheed Martin's profit fell in the first quarter, although sales edged higher as demand for weapons continued to accelerate.
Lockheed Martin stock was dropping after it reported first-quarter earnings per share of $6.44 from sales of $18 billion.
Lockheed Martin reported a lower first-quarter profit on Thursday, as high costs on fixed-price contracts and production slowdowns on some programs undercut the defense giant's ability to cash in on soaring demand.
Lockheed Martin (NYSE: LMT) dominates financial media, riding a record backlog and climbing stock price. Every defense analyst touts it. Lockheed's story is real, but it's priced in. The stock has climbed 24.21% over the past year and trades at a trailing P/E of roughly 26x on full-year 2025 EPS of $21.49. For a defense contractor... Forget Lockheed Martin. This Defense Stock Will Double by 2028.
The heavy selling pressure might have exhausted for Lockheed (LMT) as it is technically in oversold territory now. In addition to this technical measure, strong agreement among Wall Street analysts in revising earnings estimates higher indicates that the stock is ripe for a trend reversal.
Lockheed Martin's F-35 program is estimated to cost more than $2 trillion over its lifetime. Most F-35 costs come from sustainment, with 75% of expenses due to maintenance and repairs.
Both Lockheed Martin and General Dynamics are top-tier Pentagon contractors with diversified defense portfolios, including combat systems and naval programs.