Competitive Analysis of Lockheed Martin and Northrop Grumman
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2026
0mins
Source: NASDAQ.COM
- Contract Wins: Lockheed Martin secured several significant contracts in Q4 2025, including an $1 billion contract for 18 space vehicles, showcasing its strong competitive position in the defense market.
- F-35 Program Performance: The F-35 program contributed approximately 27% to Lockheed Martin's net sales, with 1,293 aircraft delivered since inception and 368 in backlog, which is expected to further drive sales growth.
- Northrop Grumman's Growth Potential: As of December 31, 2025, Northrop Grumman's backlog reached $95.68 billion, with an anticipated 35% conversion over the next 12 months, indicating a solid growth outlook.
- Financial Performance Comparison: Lockheed Martin's 2026 EPS is projected to increase by 1.29%, while Northrop Grumman's is expected to decrease by 2.08%, indicating Lockheed Martin's superior financial performance and valuation advantage.
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Analyst Views on LMT
Wall Street analysts forecast LMT stock price to fall
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 627.700
Low
430.00
Averages
535.50
High
605.00
Current: 627.700
Low
430.00
Averages
535.50
High
605.00
About LMT
Lockheed Martin Corporation is a global aerospace and defense company. The Company is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Its segments include Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft. MFC segment provides air and missile defense systems, manned and unmanned ground vehicles, energy management solutions, and others. RMS segment designs, manufactures, services and supports various military and commercial helicopters, surface ships, sea and land-based missile defense systems, and others. Its Space segment is engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surging Market Demand: Kraken Robotics reported a 60% year-over-year revenue increase to $31 million last quarter, primarily driven by its subsea battery business, highlighting significant market potential in the drone sector, particularly through its collaboration with Anduril.
- Strategic Acquisition: Kraken Robotics' recent acquisition of Covelya Group enhances its capabilities in sensors and navigation equipment for underwater robotics, a move that will further diversify its product portfolio and strengthen its market competitiveness.
- Long-Term Project Support: Lockheed Martin's involvement in the $185 billion Golden Dome missile defense system project is expected to significantly boost its future revenues, especially against the backdrop of increasing global military budgets, ensuring its leadership position in the defense sector.
- Stable Cash Flow: Lockheed Martin generated $75 billion in revenue last year, with projections for continued growth by 2026; its backlog of $194 billion reflects strong market demand, providing shareholders with a stable return outlook.
See More
Lockheed Martin Secures $105M GPS IIIF Task Order
- Contract Value: Lockheed Martin Services has secured a $105 million firm-fixed-price task order to support GPS IIIF launch and on-orbit testing operations, showcasing the company's strong capabilities in the aerospace sector.
- Funding Allocation: An initial funding of $13.42 million has already been allocated from the FY2026 R&D budgets, ensuring the project's initiation and early-stage financial requirements are met.
- Project Timeline: The work is expected to be completed by March 2030, indicating the company's commitment and capability in long-term aerospace projects, which could positively impact future revenue streams.
- Managing Authority: The contract is awarded and managed by the Space Systems Command, further solidifying Lockheed Martin's leadership position in the defense and aerospace sectors.
See More
Major Aerospace Firms Secure $1.84B Andromeda Contract
- Significant Contract Value: A consortium of major aerospace and defense companies, including Lockheed Martin and Northrop Grumman, has secured a substantial $1.84 billion contract, reflecting ongoing growth in defense spending and robust market demand.
- Project Timeline: The contract is expected to be completed by April 2036, focusing on the development of space-based domain awareness systems, indicating a sustained investment in resources by these companies to meet defense needs over the next decade.
- R&D Fund Allocation: An initial $1.4 million has been allocated from FY2025 R&D funds at the time of the award, ensuring liquidity for the project's early stages, thereby accelerating technology development and system integration.
- Contracting Authority: The Space Systems Command is the contracting activity for this project, highlighting the U.S. Department of Defense's strategic emphasis on aerospace, which may further enhance the market performance and stock prices of the involved companies.
See More
White House Defense Budget Proposal to Boost Drone Industry
- Budget Increase: President Trump proposed a $1.5 trillion defense budget for fiscal 2027, representing a 44% increase over fiscal 2026, which, if passed, would elevate U.S. military spending to its highest GDP proportion in decades.
- Drone Investment: Analysts estimate that $63 billion will be allocated to drone technology, more than six times the enacted level for 2026, indicating that increased federal investment will serve as a positive catalyst for the unmanned ecosystem.
- AeroVironment Benefits: AeroVironment, specializing in drone technology, has secured major contracts with the U.S. government and is expected to benefit from the new budget, with a price target of $400 suggesting a 114% upside potential.
- Other Companies Outlook: Ondas, Karman Holdings, and Amprius Technologies are also expected to gain from the new budget, with price targets set at $23, $125, and $20 respectively, indicating significant growth potential for these defense-related firms.
See More
Impact of Iran War on Oil Prices and Stock Market
- Surging Oil Prices: As of April 7, crude oil prices have surged to $113 per barrel, with projections suggesting they could reach $150 or even $200 if the conflict persists, directly benefiting oil stocks like Chevron (CVX), although prices may decline if the war ends.
- Increased Fertilizer Demand: The conflict in the Strait of Hormuz has led to rising global fertilizer prices, with approximately 30% of the world's fertilizer trade passing through the strait, benefiting the iShares MSCI Agriculture Producers ETF (VEGI) and highlighting the war's impact on the agriculture sector.
- Defense Sector Gains: Lockheed Martin (LMT), a major U.S. weapons manufacturer, stands to benefit from the prolonged conflict, having committed to quadrupling its munitions production in March, reflecting a proactive response to anticipated increases in defense budgets.
- Pressure on Airlines and Mortgages: United Airlines (UAL) has seen its stock drop over 18% due to rising fuel costs and travel delays, while mortgage company Compass (COMP) faces challenges from inflation concerns, illustrating the war's negative effects across multiple industries.
See More
Trump Expects Iran War to Last Weeks, Impacting Oil and Stocks
- Oil Price Surge: As of April 7, crude oil prices have surged to $113 per barrel, with potential to reach $150 or even $200 if the war continues, directly impacting oil-related stocks like Chevron (CVX), which has already risen nearly 28% this year.
- Defense Sector Gains: Lockheed Martin (LMT) has committed to quadrupling its munitions production, benefiting from the Trump administration's defense budget expansion, indicating a strong strategic position for defense companies even after the Iran war concludes.
- Airline Sector Strain: United Airlines (UAL) stock has dropped over 18% this year due to rising fuel costs and partial shutdowns at the Department of Homeland Security; a swift end to the war could lead to a decline in oil prices, allowing airlines to return to normal operations and recover stock prices.
- Mortgage Companies Affected: Rising inflation concerns have led to an increase in mortgage rates, negatively impacting companies like Compass (COMP), which projected $300 million in synergies from its acquisition of Anywhere Real Estate; a resolution to the conflict could alleviate inflation fears and spark a rebound in stock prices.
See More
