BETHESDA, Md., April 23, 2026, 09:10 EDT.
- Lockheed Martin reported first-quarter earnings of $6.44 per share on revenue of $18.02 billion, falling short of analyst estimates. The company stuck to its 2026 guidance.
- F-16 and C-130 delays drove most of the downside, but missile and space programs still posted gains.
- Before the bell, shares slipped roughly 2.8%, as worries over execution lingered—even as RTX and Northrop Grumman flagged robust demand.
Lockheed Martin’s quarterly profit fell short of analyst expectations Thursday, weighed by F-16 and C-130 delays that squeezed margins despite steady appetite for missiles and fighter jets. Shares slipped roughly 2.8% ahead of the open, last at $555.43.
It’s not the best moment for this turn. RTX bumped up its 2026 outlook just days ago, and Northrop Grumman logged a first-quarter revenue beat—each reflecting the continued boost from governments restocking weapons in the wake of recent conflicts.
This quarter’s in focus for a reason. Lockheed’s been assuring investors those fresh framework agreements would help ramp up production on Patriot, THAAD, and Precision Strike Missile lines. But Thursday’s figures made it clear: the real holdup isn’t demand—it’s still execution issues in a pair of aircraft programs.
Sales for the quarter ended March 29 edged up to $18.021 billion, compared with $17.963 billion in the same period last year, the company reported. Net earnings dropped to $1.488 billion, or $6.44 per share, down from $1.712 billion. Free cash flow landed at negative $291 million, reversing from a positive $955 million, which the filing attributed to billing timing.
Lockheed stuck with its 2026 targets: sales still set between $77.5 billion and $80 billion, diluted EPS holding at $29.35 to $30.25, free cash flow forecast steady from $6.5 billion to $6.8 billion. That gave some ballast to the full-year narrative, but shares still slipped early.
Aeronautics, Lockheed’s largest division, took the brunt of the hit. Sales dipped 1% to $6.95 billion, and operating profit slid 14% to $619 million. The company flagged $125 million in negative F-16 adjustments plus $55 million related to C-130 delays and parts shortages—partially cushioned by better F-35 sustainment results. Cost and margin expectations for both the F-16 and C-130 programs were revised this quarter.
Missiles and Fire Control didn’t track with the rest. Sales jumped 8% to $3.65 billion, driven by PAC-3, JASSM, LRASM, and Precision Strike Missile demand. Up in Space, revenue climbed 7%, helped by strategic missile-defense and Next Generation Interceptor work. CEO Jim Taiclet said Lockheed had landed “framework agreements to accelerate and scale munitions production,” adding some systems could see output boosted “3-4 times current rates.” SEC
There’s weight behind the missile drive: Lockheed recently disclosed it landed a $4.7 billion preliminary deal from the U.S. government for PAC-3 MSE interceptors, the core of Patriot air-defense systems—a move following a seven-year plan to triple output. Tim Cahill, who heads the missile division, put it bluntly: the company is “answering the nation’s call with urgency.” Boeing, too, is tied in—the Pentagon has tapped it to help triple PAC-3 seeker production, marking just how deep the expansion now goes through the supply chain. Reuters
Still, some pressure points stand out. Lockheed’s backlog—a tally of contracted work—fell to $186.4 billion as of March 29, down from $193.6 billion at 2025’s close. The latest quarter also spanned 12 weeks, not 13 like last year, complicating any apples-to-apples comparison. Fixed-price contracts remain another headache, since any overruns end up on Lockheed’s tab, not the customer’s.
The peer set tells the story: RTX bumped up its sales and profit forecasts on the back of surging weapons orders. Northrop, for its part, posted stronger revenue, powered by B-21 bomber deliveries. Lockheed’s latest numbers, though, raise a different question: was this simply a stumble in execution in what’s otherwise a hot market—or is there a deeper problem brewing?
