Lockheed Martin Q2 FY2026: sales up 10.5%, EPS $7.94, guidance raised
Lockheed Martin's second quarter of fiscal 2026 was a clean beat: sales of $20.06 billion rose 10.5% and diluted EPS of $7.94 came in $0.76 above the $7.18 consensus, with guidance raised across sales, EPS and free cash flow. The catch is the comparison — last year's quarter carried $1.6 billion of program losses. Read this quarter as a return to normal, not as a new margin level.
1 · Expected vs. Actual
Free preview belowDiluted EPS of $7.94 beat the $7.18 consensus by $0.76, or 10.5%, and net earnings of $1.84 billion compare with just $342 million a year ago. Aeronautics went from a $98 million operating loss to $760 million of profit, and Rotary and Mission Systems swung from a $172 million loss to $437 million, mostly because last year's reach-forward losses did not repeat. Tax helped too: the effective rate fell to 15.7% from 18.0%.
Sales of $20.06 billion rose 10.5% from $18.16 billion a year ago, with growth in all four segments — Missiles and Fire Control grew 19%. The company said the increase was driven by growth across all segments reflecting increased volume and munitions ramps. Gross margin was 12.2%, versus 4.0% a year ago, but that prior-year figure was crushed by the program losses, so the jump is mostly a base effect rather than a real pricing gain.
Management raised the full-year sales range to roughly $79.75–$81.75 billion from $77.50–$80.00 billion, and lifted EPS guidance to about $29.95–$30.65 from $29.35–$30.25. Free cash flow guidance went to about $7.0–$7.2 billion from $6.5–$6.8 billion, helped by cutting the capital expenditure plan to about $2.0–$2.4 billion from $2.5–$2.8 billion. The new sales midpoint of $80.75 billion carries a stated tolerance of about 1.2%.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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