Lockheed Martin (LMT) Stock Forecast & Price Target

Lockheed Martin demonstrated robust financial performance, with its Missiles and Fire Control (MFC) segment reporting a revenue of $3.433 billion, reflecting a year-over-year growth of 10.6%, driven by increased demand for advanced missile systems. Additionally, the Aeronautics segment generated $7.42 billion in revenue, marking a 1.9% increase year-over-year, primarily supported by rising F-35 volumes, while the Space segment also saw a year-over-year revenue increase of 4% to $3.3 billion despite some offsets. Strong growth expectations for the MFC segment, anticipated at approximately 12% through 2025 due to increasing funding for missile systems both domestically and internationally, further solidify a positive outlook for Lockheed Martin's stock.

Lockheed Martin's financial outlook has deteriorated significantly, as the company has lowered its fiscal year 2026 free cash flow guidance to approximately $6 billion, indicating a year-over-year decline from previously anticipated growth rates. The company's second-quarter 2025 performance revealed a $1.6 billion impact from program losses, resulting in a 2% revenue miss, a 71% decline in segment operating income, and a staggering 78% drop in earnings per share, which has undermined investor confidence in Lockheed's program execution. Furthermore, the significant margin contractions across key segments, particularly the aeronautics and rotary mission systems sectors, point to underlying operational challenges that may continue to hinder financial recovery.