New York, Jan 29, 2026, 15:16 EST — Regular session
- Lockheed Martin shares climbed after the Pentagon inked a profit-sharing deal to boost production of THAAD and Patriot interceptors
- The company’s revenue and profit forecast for 2026 surpassed Wall Street’s estimates
- Investors are keeping an eye on whether Washington funding and factory capacity can meet the set production targets
Lockheed Martin shares climbed roughly 4.7% to $625.61 in afternoon trading Thursday. Investors are digesting a fresh Pentagon profit-sharing deal linked to missile production, alongside a 2026 outlook that beat forecasts.
This shift is critical now as U.S. and allied appetite for air-defense interceptors has jumped. The Pentagon is pushing contractors to ramp up production, not just secure orders.
Lockheed said the deal aims to boost production without overhauling existing contracts. Output of its Terminal High Altitude Area Defense system, or THAAD, will climb to 400 interceptors annually from 96. Meanwhile, Patriot PAC-3 interceptors are set to increase to 2,000 a year, up from 600.
Lockheed CEO Jim Taiclet said if the company hits its production and profit targets, it plans to “share some of the increased profits with the U.S. government” by reinvesting in factory capacity. Reuters
Lockheed posted fourth-quarter sales of $20.32 billion on Thursday, rising from $18.62 billion in the same period last year. Net earnings hit $1.3 billion, translating to $5.80 per share.
Looking ahead to 2026, it projected revenue between $77.5 billion and $80 billion, with earnings per share expected to land from $29.35 to $30.25, driven by steady demand for its fighter jets and weapons systems.
Missiles and Fire Control, home to Patriot-related projects, led all segments with the fastest quarterly sales increase. Aeronautics also climbed, boosted by ongoing deliveries.
The Pentagon is stepping up efforts to expand the supply chain, recently supporting production investments at various defense suppliers. This move aims to ease bottlenecks in propulsion and other key components.
The ramp-up isn’t linear. Without congressional funding to back planned multi-year munitions purchases, production timelines risk delays and costs can climb before “make-whole” clauses—contract terms that reimburse contractors if plans shift—come into play.
Lockheed’s rise comes amid pressure on major defense contractors to keep delivery schedules under close scrutiny, alongside margins. RTX and Northrop Grumman are also being watched closely for how they juggle dividend payouts with capacity investments.
Investors will next focus on Lockheed’s spending plans tied to its production goals and the pace at which the promised ramp-up translates into actual deliveries. Governance issues are also on the docket, heading into the company’s annual shareholder meeting scheduled for May 12, 2026.
