New York, January 14, 2026, 15:33 EST — Regular session
- Lockheed Martin shares rose in afternoon trading, outperforming the weaker broader market
- The company announced a first flight test for its next-generation short-range interceptor
- Investors took note of new Pentagon efforts aimed at strengthening the missile supply chain
Lockheed Martin (LMT) shares climbed roughly 2.3% Wednesday, closing at $571.40, while the SPDR S&P 500 ETF (SPY) dipped around 0.8%. The stock fluctuated between $553.74 and $578 during the session.
Investors are zeroing in on clear evidence that major defense contractors can convert demand into actual output, particularly in missiles and air defense. This focus has been fueling the sector’s gains, even when the broader market wobbles.
On Tuesday, the Pentagon announced a $1 billion investment in L3Harris Technologies’ expanding rocket-motor division, aiming to lock down a reliable supply of motors for missiles like Tomahawks and Patriot interceptors. The funding will take the form of a convertible security, turning into equity once the unit goes public. Michael Duffey, under secretary of defense for acquisition and sustainment, said the move marks “a fundamental shift” in securing the munitions supply chain. TD Cowen analyst Gautam Khanna noted this could put competitors at a disadvantage. The Pentagon added that multi-year procurement deals will require congressional approval and funding. 1
Lockheed announced Tuesday it completed the inaugural flight test of its Next-Generation Short-Range Interceptor (NGSRI) at White Sands Missile Range in New Mexico. The interceptor could eventually replace the Stinger shoulder-fired missile. “Our team’s shared mission, innovative approach and agility were essential to achieving this milestone,” said Randy Crites, vice president at Lockheed Martin Advanced Programs, in the company release. 2
The U.S. Navy awarded Sikorsky Aircraft, part of Lockheed Martin, a not-to-exceed $21.6 million contract for engine torque testing and certification on the VH-92A Patriot helicopter modifications. This “undefinitized” order allows work to begin before final pricing and terms are set, with the project slated to continue through July 2027. 3
Analyst activity remains focused on the stock. Citi’s John Godyn bumped his price target for Lockheed up to $592 from $505, maintaining a Neutral rating. He noted, “The sector’s momentum is likely to continue through the first half of 2026.” 4
Other defense giants saw gains on the day. Northrop Grumman jumped roughly 4%, RTX climbed around 1.6%, General Dynamics inched up, and L3Harris showed a slight rise.
Yet a flight test and a minor contract rarely resolve the broader debate by themselves. Investors want to track how swiftly prototypes convert into actual funded orders — and if schedule delays and cost overruns remain manageable as production scales up.
Lockheed’s Q4 and full-year 2025 earnings call is set for Jan. 29 at 8:30 a.m. EST. Traders are keen to hear 2026 guidance and any firm details on missile and air-defense production. 5
