New York, Jan 29, 2026, 19:47 EST — After-hours
- Lockheed Martin shares climbed after the company lifted its 2026 outlook and outlined a profit-sharing framework tied to higher missile output.
- The defense contractor pointed to stronger demand for air-defense systems and fighter jets, while flagging policy uncertainty around shareholder payouts.
- Investors now shift to Friday’s session for follow-through and fresh analyst calls.
Lockheed Martin shares rose 4.1% to $622.51 in late trading on Thursday after the defense contractor forecast 2026 profit and revenue above Wall Street estimates and detailed a profit-sharing agreement with the U.S. government to speed up production of key air-defense missiles.
The move matters because Washington has been pushing suppliers to replenish missile stockpiles and expand capacity, as demand for air-defense interceptors has surged with wars in Ukraine and the Middle East. Lockheed’s update also lands in a crowded earnings stretch for aerospace and defense, when investors tend to trade the group on guidance more than on the quarter.
Lockheed said it has a deal with the Pentagon to more than quadruple annual production of its Terminal High Altitude Area Defense (THAAD) interceptor to 400 a year from 96, and it is working under a separate agreement to raise Patriot PAC-3 interceptor output to 2,000 units a year from 600. If it beats production and profit targets, CEO Jim Taiclet said the company would “share some of the increased profits” by plowing money back into capacity.
For the quarter, Lockheed reported earnings per share (EPS) of $5.80 on sales of $20.3 billion. EPS is profit per share, a common yardstick on Wall Street.
It forecast 2026 revenue of $77.5 billion to $80.0 billion and profit of $29.35 to $30.25 per share, a range that edged past consensus estimates cited by Reuters. The company ended 2025 with a record backlog of about $194 billion, which investors watch as a rough proxy for future work.
Missiles and fire control posted the fastest growth in the fourth quarter, Lockheed said, while aeronautics — its biggest segment by revenue — also rose. Lockheed also pointed to a record 191 F-35 deliveries in 2025, a program that remains central to its cash flow and investor debates around concentration risk.
The company said contract structures include “make-whole” provisions — clauses meant to protect it if congressional funding does not support planned multi-year buys. That language is designed to reassure investors who still remember past budget standoffs and their knock-on effects for suppliers.
A key risk for shareholders is policy: Reuters noted an executive order signed earlier this month that links dividends, buybacks and executive pay more tightly to delivery schedules, a change that could curb payouts if programs slip. That overhang sits alongside the usual questions on margins as production ramps.
Peers including RTX and Northrop Grumman have stressed commitment to dividends, though Northrop has said it would pause buybacks beyond January, according to Reuters. The group has been trading partly on whether higher volumes translate into cleaner execution, not just higher sales.
Another watch point is where Lockheed puts incremental cash. The company said it paid $3.13 billion in dividends in 2025, and investors will listen for any change in tone around buybacks after Washington’s recent push for faster deliveries.
For price action, traders will be watching whether Thursday’s pop holds into Friday’s regular session, and how quickly analysts update targets and ratings after the guidance reset. A longer-dated catalyst is the company’s next earnings report, expected on April 28.
