TLDR
- Lockheed Martin (LMT) gained 2.7% during Friday’s session, reaching approximately $659 with trading volume 34% above typical levels.
- Fourth quarter revenue exceeded expectations at $20.32B versus the anticipated $19.84B, though earnings per share fell short at $5.80 against the $6.33 forecast.
- The Army completed successful testing of Lockheed’s Next Generation Command and Control (NGC2) platform, with additional trials scheduled for April 2026.
- Lockheed received an $18.8M Navy contract extension for the Trident II (D5) Life Extension 2 initiative, extending operations until August 2030.
- Shares have surged more than 31% since the beginning of the year, approaching record highs, with a $3.45 per share quarterly dividend announcement.
Shares of Lockheed Martin (LMT) advanced 2.7% during Friday’s trading session, touching an intraday peak of $662.47 before closing near $659.24. The stock had finished Thursday’s session at $641.63.
Lockheed Martin Corporation, LMT
Trading activity was notably robust. Approximately 2.59 million shares exchanged hands, representing a 34% increase over the typical daily volume of around 1.93 million shares.
The upward momentum followed the announcement of two distinct military contract developments within the same week, further cementing LMT’s standing as a primary defense supplier to the United States government.
The U.S. Army wrapped up prototype evaluation of Lockheed’s Next Generation Command and Control (NGC2) platform alongside the 25th Infantry Division. This advanced system integrates sensor intelligence directly with weapons platforms, enabling military personnel to detect and neutralize threats more efficiently.
This “sensor-to-shooter” functionality represents a critical component of contemporary combat operations. Intelligence gathered from the recent trial is already informing technological enhancements, with an additional assessment scheduled for April 2026 as part of the “Lightning Surge 3” training operation.
Separately, Lockheed was awarded an $18.8 million contract adjustment connected to the Trident II (D5) Life Extension 2 initiative. This program supports the nation’s submarine-launched nuclear deterrence capabilities, with the agreement extending through August 30, 2030.
The majority of operations will take place at Lockheed’s Alabama facility in Huntsville. While the monetary value might appear modest in isolation, the extended timeline and strategic significance of the program carry weight with market participants.
Q4 Earnings: Revenue Beat, EPS Miss
LMT’s latest quarterly performance, disclosed on January 29, demonstrated revenue of $20.32 billion compared to analyst projections of $19.84 billion — exceeding expectations by approximately $480 million. Revenue climbed 9.1% compared to the prior year period.
Earnings per share registered at $5.80, falling short of the consensus forecast of $6.33 by $0.53. During the comparable quarter last year, the defense contractor reported EPS of $7.67.
Wall Street anticipates full-year EPS of $27.15 for the ongoing fiscal period.
Analyst Targets and Dividend
Multiple research firms have adjusted their price objectives higher. Citigroup increased its target from $592 to $673, while keeping a “neutral” stance. RBC Capital Markets elevated its target from $615 to $650 alongside a “sector perform” rating. Robert W. Baird established a $640 target with an “outperform” recommendation.
The MarketBeat consensus reflects a “Hold” rating with an average price objective of $612.50 — trailing the current trading level.
Lockheed announced a quarterly dividend distribution of $3.45 per share, scheduled for payment on March 27 to investors of record as of March 2. The annualized payout totals $13.80, translating to an approximate yield of 2.1%. The company’s payout ratio registers at 64.22%.
The defense contractor’s market capitalization stands at $151.68 billion, featuring a price-to-earnings ratio of 30.68 and a beta coefficient of 0.23. The 50-day moving average sits at $578.05, while the 200-day moving average rests at $508.04.
LMT has rallied more than 31% since January and currently trades near historic peaks. Institutional ownership accounts for 74.19% of outstanding shares.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
