NEW YORK, Jan 14, 2026, 19:15 ET — After-hours
- Lockheed Martin shares climbed 2.6% in late trading amid widespread gains across U.S. defense stocks
- Lockheed and GE Aerospace announced successful tests of a new ramjet design targeting hypersonic missile applications
- Citi raised its price target for Lockheed to $592 ahead of the Jan. 29 earnings call
Lockheed Martin shares jumped 2.6% in after-hours trading Wednesday following news that the defense giant and GE Aerospace wrapped up engine tests for a new ramjet designed for hypersonic missiles. Northrop Grumman climbed 4.4%, RTX edged up 2.4%, and General Dynamics gained 0.7%. GE Aerospace, however, slipped 2.5%.
This update is crucial as investors seek clear signs that U.S. weapons makers are accelerating progress on next-gen missile technology and expanding the supply chains needed to support it. Hypersonic programs come with high costs and complexity, but any breakthrough news can quickly sway sentiment in a sector where contract timelines stretch over years.
The Pentagon’s move to pump $1 billion into L3Harris Technologies’ rocket motor division has sharpened that focus. This rare direct investment aims to secure propulsion for weapons like Tomahawks and Patriot interceptors. Officials described it as a shift toward backing critical suppliers outright. Separately, the department struck a seven-year deal with Lockheed last week to boost PAC-3 missile production from around 600 to 2,000 units annually.
Lockheed and GE have conducted a series of tests proving the viability of a liquid-fueled “rotating detonation” ramjet — an air-breathing engine that uses detonation waves instead of conventional combustion to burn fuel — designed for missiles capable of hypersonic speeds, exceeding five times the speed of sound. GE’s Mark Rettig said the tests “exceeded expectations,” while Lockheed’s Randy Crites emphasized their goal of delivering “affordable capability” with “extended range at extreme speeds.” Media – Lockheed Martin
Lockheed announced it wrapped up the first flight test of its Next-Generation Short-Range Interceptor the day before, aiming to replace the Stinger missile. Conducted at White Sands Missile Range, the test confirmed the system’s performance and advanced critical subsystems. The design features an “open systems architecture,” allowing hardware and software updates via a plug-and-play setup. “Our team’s shared mission, innovative approach and agility were essential,” said Crites. Chris Murphy, the business development lead, added the controlled flight test series was completed “in less than six months.” Media – Lockheed Martin
Citi’s John Godyn bumped his price target for Lockheed up to $592 from $505, maintaining a Neutral rating. He noted that “the sector’s momentum is likely to continue through the first half of 2026.” Remember, a price target reflects where an analyst thinks the stock might trade over the next year, not a promise. TipRanks
Yet the short-term wager isn’t without its usual pitfalls: hypersonic propulsion development can hit snags in both engineering and test ranges. The Stinger-replacement program remains in early flight testing, with no production green light yet. Any delays or cost overruns could quickly shift contractor sentiment, particularly as Washington steps up its scrutiny of industrial execution.
Lockheed plans to release its fourth-quarter and full-year 2025 results before the market opens on Jan. 29. The earnings call, featuring CEO Jim Taiclet and CFO Evan Scott, is scheduled for 8:30 a.m. ET.
Traders will be watching to see if Wednesday’s gains stick through Thursday. Attention also turns to Lockheed for any fresh test updates or new details on contracts ahead of the Jan. 29 call.
