Lockheed Martin (LMT) Stock Forecast & Price Target

Lockheed Martin reported a year-over-year revenue increase of 10.6% in its Missiles and Fire Control (MFC) segment, driven by enhancements in JASSM, LRASM, and precision fires programs, solidifying its position in missile defense systems. The Space segment also showed resilience with a 4% increase in revenue, reflecting broad strength in commercial and defense programs, despite some weaknesses in specific areas. Furthermore, the Aeronautics segment's revenue rose to $7.42 billion, a 1.9% increase supported by higher F-35 sales, which underscores the growing demand and potential for continued growth in the company’s defense offerings.

Lockheed Martin's financial outlook appears negative due to a significant reduction in FY26 free cash flow guidance to approximately $6 billion, indicating a year-over-year decline from previously expected low single-digit to mid-single-digit growth rates. The company reported a weak 2Q25 performance characterized by approximately $1.6 billion in program losses, resulting in a 2% revenue miss, a 71% miss in segment operating income, and a 78% earnings per share (EPS) miss, which has eroded investor confidence in its execution capabilities. Additionally, the notable declines in operating margins across multiple segments, including Aeronautics which saw a drastic drop of 1160 basis points to -1.3%, further reinforce concerns regarding Lockheed Martin's financial stability and operational efficiency.