With a market cap of $120.5 billion, Lockheed Martin Corporation (LMT) researches, designs, develops, manufactures, and sustains advanced technology systems, products, and services for government and commercial customers worldwide. It operates through four business segments: Aeronautics; Missiles and Fire Control; Rotary and Mission Systems; and Space, serving the U.S. government and international defense markets.
Shares of the largest U.S. defense contractor have lagged behind the broader market over the past 52 weeks. LMT stock has gained 12.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 28.2%. Moreover, shares of the company have returned 9.3% on a YTD basis, compared to SPX’s 9.4% rise.
Focusing more closely, shares of the Bethesda, Maryland-based company have underperformed the State Street Industrial Select Sector SPDR ETF’s (XLI) 21.3% increase over the past 52 weeks.
Shares of Lockheed Martin fell 4.6% on Apr. 23 after the company reported weaker-than-expected Q1 2026 revenue of $18.02 billion and EPS of $6.44. Investor sentiment was further pressured by a decline in profitability and cash generation, as net income dropped to $1.49 billion, operating profit fell to $2.06 billion, and free cash flow came in at negative $291 million.
The weakness was driven by softer performance in key segments, including a decline in aeronautics sales to $6.95 billion due to lower classified program volume and F-16 weakness, along with an 8% drop in rotary and mission systems revenue to $3.99 billion.
For the fiscal year ending in December 2026, analysts expect LMT’s EPS to grow 4.8% year-over-year to $29.88. The company's earnings surprise history is mixed. It topped the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 24 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, 15 “Holds,” and one “Strong Sell.”
On May 18, Citi cut its price target for Lockheed Martin to $571 and maintained a “Neutral” rating.
The mean price target of $632.82 represents a 20.4% premium to LMT’s current price levels. The Street-high price target of $775 suggests a 47.4% potential upside.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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