New York, Feb 2, 2026, 3:37 PM EST — Regular session underway.
Lockheed Martin shares gained 0.5%, reaching $637.50 in afternoon trading Monday, after dipping to a session low of $616 and peaking at $640.84. The broader market moved higher, with the SPDR S&P 500 ETF Trust climbing around 0.5% and the Invesco QQQ Trust up about 0.7%. Defense stocks showed mixed results: the iShares U.S. Aerospace & Defense ETF fell 0.4%, Northrop Grumman lost roughly 1.1%, while RTX edged up slightly.
The move comes as investors weigh the impact of Washington’s push to ramp up production on shareholder returns. Donald Trump has warned he might cut dividends and share buybacks if contractors don’t speed up weapons deliveries. Melius Research projects the top five U.S. defense firms will boost capital spending by nearly 38% in 2026, according to a Reuters report. Ken Herbert of RBC Capital Markets said his model now assumes “no buybacks through 2028, but continued dividend payments.” Lockheed, meanwhile, said it is still reviewing its approach and declined to comment. (Reuters)
For Lockheed, the equation is simple: ramp up production, pump out more equipment, and boost spending. This can drive revenue higher, though it also drains cash and raises questions about margins.
On Monday, the company highlighted new international orders. It revealed the U.S. government awarded a $328.5 million Foreign Military Sales contract to supply IRST21 Legion‑ES infrared search-and-track sensors for Taiwan’s Air Force, tailored for the F-16. Cristin Stengel described the deal as “an important milestone,” marking Taiwan as the first foreign partner to receive the Legion‑ES system. (Media – Lockheed Martin)
Lockheed reported progress on a U.S. Army radar program, delivering the first Sentinel A4 radar from low-rate initial production to the Army. The company also wrapped up the first phase of initial operational testing. Rick Cordaro called the delivery “a major milestone” as the program gears up for full-rate production. (Media – Lockheed Martin)
Lockheed and Fujitsu Limited have signed a memorandum of understanding focused on “dual-use” technologies—those with both civilian and military applications. Their collaboration will target fields like microelectronics and “inference at the edge,” where analytics run directly on devices instead of remote data centers. Lockheed’s Craig Martell called the partnership “a force multiplier,” while Fujitsu’s Vivek Mahajan said it should boost both firms’ competitive edge. (Media – Lockheed Martin)
The headlines might be modest, yet they arrive as the market shifts its view of defense primes—from reliable dividend payers to industrials potentially requiring reinvestment. This shift could alter the price investors assign to each dollar of earnings.
However, winning contracts doesn’t ensure seamless execution. Foreign Military Sales deliveries often face delays due to approvals and supplier hold-ups. Plus, moving away from buybacks would take away a reliable boost for valuations throughout the group.
Traders are closely eyeing upcoming Pentagon contracts and looking for clearer signs on 2026 capital plans.
Lockheed’s next earnings report is scheduled for April 21, based on calendars from Investing.com and TipRanks, as companies continue to update their guidance. (Investing)
