LMT · Q2 FY2026
LOCKHEED MARTIN CORP Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $20.06B | $18.16B (yr ago) | Beat |
| EPS | $7.94 | $1.46 (yr ago) | Beat |
| Free Cash Flow | $2.92B | $(0.15)B (yr ago) | Beat |
| Gross Margin | 12.2% | 4.0% (yr ago) | Beat |
| Operating Margin | 12.4% | 4.1% (yr ago) | Beat |
What changed
Sales increased 10.5% to $20.06 billion, with growth across all four segments, while free cash flow recovered to $2.92 billion. Earnings and margins rebounded sharply from a year-earlier quarter burdened by $1.6 billion of program losses, and management raised its full-year sales, EPS and free-cash-flow guidance after backlog reached $230.42 billion.
Impact on the investment thesis
We establish fair value at $576 per share, based on 19.0 times the $30.30 midpoint of updated FY2026 EPS guidance. The quarter improves confidence in demand and cash generation, but the margin comparison is flattered by unusually large prior-year charges, leaving the shares fairly valued at $530.12.