LMT Stock Explained: Lockheed Martin’s Q3 2026 Results, $292bn Backlog and Dividend
LMT is the New York Stock Exchange ticker of Lockheed Martin Corporation, the largest U.S. defense contractor. If you are searching “LMT stock”, “NYSE: LMT” or “Lockheed Martin share price”, you will find the live quote on any market data site. What a quote does not tell you is what is driving the business underneath it. This article sets out the latest official numbers from Lockheed Martin’s third-quarter 2026 report (22 October 2026): sales, earnings, the record $292 billion backlog, the raised 2026 guidance and the dividend. It also covers the risks the company itself flags. It is an explainer, not investment advice.
LMT: key facts (Q3 2026)
- Ticker / exchange: LMT, New York Stock Exchange.
- Q3 2026 sales: $20.7 billion, up 11% year-on-year.
- Q3 2026 net earnings: $1.8 billion, or $7.97 per diluted share (Q3 2025: $6.95).
- Free cash flow (Q3): $3.0 billion.
- Backlog: record $292.0 billion at 27 September 2026, up from $193.6 billion at the end of 2025.
- 2026 guidance (raised): sales of about $80.0–82.0 billion, diluted EPS of about $30.35–30.75, free cash flow of about $7.8–8.0 billion.
- Dividend: $3.60 per share for Q4 2026 (up from $3.45). It is payable on 31 December 2026 to holders of record on 1 December 2026, and is the 24th consecutive annual increase.
What does Lockheed Martin actually sell?
Lockheed Martin reports four business segments. Their third-quarter 2026 sales show where the money comes from:
| Segment | Main programmes | Q3 2026 sales | Change y/y | Operating margin |
|---|---|---|---|---|
| Aeronautics | F-35, F-16, C-130J | $8.21 bn | +13% | 9.0% |
| Missiles and Fire Control (MFC) | PAC-3, THAAD, GMLRS, PrSM, Hellfire | $4.50 bn | +24% | 14.0% |
| Rotary and Mission Systems (RMS) | Sikorsky helicopters, Aegis, radars | $4.51 bn | +3% | 11.6% |
| Space | Fleet Ballistic Missile, Next Generation Interceptor, satellites | $3.49 bn | +4% | 9.5% |
The fastest-growing unit is Missiles and Fire Control. According to the company, its sales jumped by $877 million, driven by production ramps on PAC-3 and THAAD (+$480 million) and on GMLRS and PrSM (+$330 million). In Aeronautics, F-35 sales rose by $710 million on higher production and sustainment volume.
The $292 billion backlog explained
Backlog is the value of contracted work not yet turned into sales, and it is the headline number of 2026. It grew 27% in a single quarter, to $292.0 billion. By segment at 27 September 2026:
- Missiles and Fire Control: $142.5 billion, up from $46.7 billion at the end of 2025.
- Aeronautics: $57.3 billion.
- Rotary and Mission Systems: $49.4 billion.
- Space: $42.7 billion.
The jump in MFC comes largely from the multi-year PAC-3 Missile Segment Enhancement award. Lockheed Martin says $52.5 billion of the backlog is associated with that contract. On the earnings call, Taiclet said the seven-year PAC-3 contract has a total value of up to $58.6 billion and that the quarter’s book-to-bill ratio was 4x. We covered the related capacity build-out in Lockheed Martin’s $8 billion missile production investment.
2026 guidance: raised again
Lockheed Martin raised its full-year outlook for the second quarter running:
| 2026 outlook | October 2026 (current) | July 2026 (previous) |
|---|---|---|
| Sales | ~$80.0–82.0 bn | $79.75–81.75 bn |
| Business segment operating profit | ~$8.575–8.675 bn | $8.5–8.7 bn |
| Diluted EPS | ~$30.35–30.75 | $29.95–30.65 |
| Cash from operations | ~$10.0–10.2 bn | $9.2–9.4 bn |
| Free cash flow | ~$7.8–8.0 bn | $7.0–7.2 bn |
For the first nine months of 2026, the company reported sales of $58.8 billion, net earnings of $5.2 billion and diluted EPS of $22.36. In the same period of 2025 the figures were $54.7 billion, $3.7 billion and $15.69.
Dividend and cash
- Dividend: the Q4 2026 dividend is $3.60 per share, up $0.15. Lockheed Martin says this is the 24th year in a row it has raised the dividend.
- Cash returned: the company paid $2.4 billion in dividends in the first nine months of 2026. It reported no share repurchases in that period, compared with $2.25 billion in the same period of 2025.
- Cash and debt: cash and equivalents were $5.96 billion at 27 September 2026, against long-term debt of $20.5 billion.
Risks the company flags
Several risks stand out in the Q3 2026 release:
- F-35 Lots 20+: Lockheed Martin is still negotiating production contracts for F-35 Lots 20 and higher with the U.S. government. During the quarter, its costs began to exceed the current authorisation and funding on the Lot 20 advance acquisition contract. The company warns that without more authorisation and funding, “results of operations, cash flows, and financial condition will be negatively impacted in future periods.” Q3 2026 F-35 deliveries were 43, down from 46 a year earlier.
- Concentration on the U.S. government: most revenue depends on U.S. budgets, continuing resolutions and shutdown risk.
- Fixed-price programme risk: in the first nine months of 2025 the company recorded $1.6 billion of reach-forward losses on select programmes. The Q3 2026 release also notes unfavourable profit adjustments on the F-16, C-130, Heavy Lift and Seahawk programmes.
- Integration: the pending Ultra Maritime acquisition, which the company said was on track to close in Q4 2026.
Programme news also matters for the share price. Recent examples on Envanter include the 10-year F-35 framework with the Pentagon, the GAO report on missing F-35 parts and the 100,000th GMLRS rocket.
Who runs the company?
Lockheed Martin is led by chairman, president and CEO Jim Taiclet, a former Air Force pilot and American Tower chief executive. You can read our profile of Jim Taiclet, or our broader explainer Lockheed Martin: the world’s largest defense company.
Frequently asked questions
What is LMT?
LMT is the NYSE ticker symbol of Lockheed Martin Corporation.
Why has Lockheed Martin’s backlog grown so fast?
Mostly because of munitions. The multi-year PAC-3 MSE award alone accounts for $52.5 billion of the $292 billion backlog, and MFC backlog roughly tripled during 2026.
Does Lockheed Martin pay a dividend?
Yes. The Q4 2026 dividend is $3.60 per share, payable on 31 December 2026 to shareholders of record on 1 December 2026.
When are Lockheed Martin’s next results?
Lockheed Martin publishes the date on its investor relations website. Its fiscal year ends on 31 December, and the fourth quarter of 2026 has 14 weeks under its accounting calendar.
This article reports company-published figures and is not a recommendation to buy or sell any security.
Sources
- Lockheed Martin: “Lockheed Martin Reports Third Quarter 2026 Financial Results”, 22 October 2026, including financial tables.
- Lockheed Martin: “Lockheed Martin Declares Fourth Quarter 2026 Dividend”, October 2026.
- Lockheed Martin Q3 2026 earnings call transcript (The Motley Fool), 22 October 2026.
