Key Takeaways
- CNBC’s Jim Cramer praised Lockheed Martin as “sensational” during Mad Money’s Lightning Round
- Second quarter 2026 net earnings soared to $1.836 billion, a dramatic jump from $342 million year-over-year
- Company achieved historic backlog of $230.4 billion fueled by $65 billion in fresh orders this quarter
- Major defense contracts exceeding $90 billion secured for PAC-3 and THAAD missile systems
- Management lifted full-year 2026 EPS outlook to $29.95-$30.65 range; shares climbing 21.12% this year
Shares of Lockheed Martin (LMT) kicked off Friday’s session at $587.12, gaining 0.7% intraday, with year-to-date performance reaching an impressive 21.12%āsignificantly outpacing the S&P 500’s 12.92% advance during the identical timeframe.
Lockheed Martin Corporation, LMT
During the August 6 edition of Mad Money’s Lightning Round, Jim Cramer delivered an unambiguous endorsement of the defense contractor. He described the stock as “sensational” while praising CEO Jim Taiclet as “fantastic.” Such unequivocal enthusiasm from Cramer rarely leaves room for interpretation.
The company’s second quarter 2026 performance validates his optimism. Revenue totaled $20.1 billion, marking an 11% increase from the prior year. Diluted earnings per share reached $7.94, a substantial jump from the $1.46 posted in Q2 2025. Free cash flow generation hit $2.9 billion, a remarkable swing from the negative $150 million recorded twelve months earlier.
Last year’s second quarter saw program setbacks totaling $1.6 billion that compressed net earnings to just $342 million. This year’s Q2 2026 results delivered net earnings of $1.836 billion. This represents far more than simply exceeding expectationsāit signals a fundamental operational transformation.
Operating profit across business segments surged 279% year-over-year, reaching $2.162 billion. The Missiles and Fire Control division emerged as the standout performer, generating $4.1 billion in revenueāa 19% annual increaseāwhile operating profit climbed 24%.
Historic Backlog Growth and Massive Defense Contracts
Lockheed closed the second quarter with an unprecedented backlog totaling $230.4 billion, climbing from $193.6 billion at the conclusion of 2025. The defense giant secured $65 billion worth of new orders throughout the three-month period.
This backlog provides approximately three years’ worth of revenue based on current production rates. Such forward visibility establishes a competitive advantage that few defense industry peers can match.
The scale of recent contract wins is staggering. July 2026 brought a seven-year contract modification valued at up to $53.86 billion for PAC-3 Missile Segment Enhancement interceptors. June delivered another award worth up to $35 billion for THAAD interceptor systems. Earlier in the year, the company added a $1.9 billion extension covering C-130J training operations.
Combined, these two missile programs alone account for over $90 billion in awards secured within mere weeks.
To accommodate expanded production demands, Lockheed unveiled capital investment plans totaling $8 billion to $9 billion extending through 2030. This initiative will enhance more than 20 manufacturing locations nationwide. Ground has already been broken on new facilities in Camden, Arkansas, and Troy, Alabama.
Analyst Community Maintains Reserved Stance
Even with impressive operational results, the analyst community continues exercising restraint. Current consensus sits at “Hold” with an average price objective of $626.33. JPMorgan established a $620 price target. Wells Fargo positioned its target at $600. TD Cowen actually reduced its projection from $600 down to $560.
Wall Street Zen and DZ Bank represent notable exceptions, both elevating LMT to “strong buy” ratings. However, the majority of sell-side analysts maintain neutral positions.
Lockheed elevated its full-year 2026 earnings per share forecast to a range of $29.95-$30.65. Annual free cash flow guidance was similarly increased to $7.0 billion-$7.2 billion. Revenue projections now stand at $79.75 billion-$81.75 billion, implying roughly 8% growth versus the previous year.
Management also announced a quarterly dividend of $3.45 per share, scheduled for September 25 distribution, yielding 2.4% annually. Institutional ownership comprises 74.19% of outstanding shares. Victrix Investment Advisors expanded its LMT position by 15.4% during Q2, increasing its holdings to approximately $7.07 million.
The stock trades between a 52-week high of $692.00 and a low of $423.91.
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