Lockheed Martin (LMT) Stock Forecast & Price Target

Lockheed Martin's financial performance demonstrates strong growth potential, with MFC revenue increasing by 10.6% year-over-year, driven by an uptick in JASSM, LRASM, and precision fires programs, signaling robust demand for missile systems. The aeronautics sector also showcased solid results, with revenue of $7.42 billion reflecting a 1.9% year-over-year increase primarily attributed to rising F-35 volumes, which underscores the ongoing strength of Lockheed's flagship programs. Furthermore, the expectation of approximately 12% growth in the MFC segment through 2025 indicates a favorable outlook, as international and domestic funding for missile defense systems continues to expand.

Lockheed Martin has recently reduced its FY26 free cash flow guidance to approximately $6 billion, indicating a year-over-year decline compared to previous expectations of low single-digit to mid-single-digit growth, which reflects poor financial performance and a negative outlook. The company's 2Q25 results evidenced significant weaknesses, including a revenue miss of 2%, a staggering 71% shortfall in segment operating income, and a 78% earnings per share miss, primarily driven by ~$1.6 billion in program losses. Additionally, the decrease in operating margins across major segments, notably a dramatic decline in Aeronautics and Rotary and Mission Systems, raises concerns about the company's operational efficiency and execution capabilities, further dampening investor confidence.