Lockheed Martin (LMT) Stock Forecast & Price Target

Lockheed Martin has demonstrated solid financial growth, with the Missiles and Fire Control (MFC) segment generating revenue of $3.433 billion, reflecting a year-over-year increase of 10.6%, driven by ramp-ups in missile programs. The Space segment also showed strength, posting revenue of $3.3 billion, a 4% year-over-year rise, supported by robust commercial and defense programs, despite some weakness in specific areas. Additionally, the Aeronautics segment, bolstered by increased F-35 volumes, recorded revenue of $7.42 billion, up 1.9% year-over-year, highlighting Lockheed's continued dominance in high-end fighter aircraft and positioning the company favorably for sustained growth across its segments.

Lockheed Martin's financial outlook appears negative due to a downward revision of its fiscal year 2026 free cash flow guidance to approximately $6 billion, indicating a year-over-year decline and contrasting significantly with previous expectations of low-single to mid-single digit growth. The company's second-quarter 2025 results revealed substantial program losses of around $1.6 billion, which contributed to a 2% revenue miss, a staggering 71% segment operating income miss, and a 78% earnings per share miss, ultimately shaking investor confidence in the company's program execution. Additionally, the significant deterioration in operating margins across multiple segments, particularly a dramatic drop in Aeronautics to -1.3% and a collapse of 1500 basis points in Rotary and Mission Systems, underscores ongoing challenges that may adversely affect Lockheed Martin's financial performance going forward.