Palantir Gains Ground While Other AI Stocks Decline, Thanks to Profitable Defense Contracts.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 02 2026
0mins
Source: Barron's
- Palantir Technologies Stock Surge: Shares of Palantir Technologies increased significantly following military actions by the U.S. and Israel against Iran.
- Defense and Intelligence Ties: The company's close relationship with U.S. defense and intelligence operations likely contributed to the stock's rise amid geopolitical tensions.
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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: 616.250
Low
430.00
Averages
535.50
High
605.00
Current: 616.250
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.
Lockheed Martin Corporation:
Company Overview: Lockheed Martin Corporation is a global aerospace, defense, and security company known for its advanced technology and innovation in military and civilian sectors.
Recent Developments: The company has been involved in various contracts and partnerships aimed at enhancing national security and advancing aerospace capabilities.
Financial Performance: Lockheed Martin has reported strong financial results, driven by increased demand for defense products and services amid global security challenges.
Future Outlook: The company is focusing on expanding its portfolio in emerging technologies, including artificial intelligence and cybersecurity, to maintain its competitive edge in the industry.
See More
Lockheed Martin Secures ~$478M Contract for Submarine Imaging System
- Significant Contract Value: Lockheed Martin's Rotary and Mission Systems has been awarded a ~$478 million IDIQ contract for engineering and technical support of the Integrated Submarine Imaging System for both new and in-service submarines, highlighting strong demand in the defense sector.
- Potential Value Increase: The contract includes options that could raise its total value to approximately $1.19 billion if fully exercised, indicating the company's long-term strategic positioning and profit potential in the submarine technology support market.
- Project Execution Location: Work will be performed in Manassas, Virginia, with an expected completion date of March 2036, providing the company with a stable revenue stream and project management opportunities over the long term.
- Navy Systems Command Oversight: The contract is awarded by the Naval Sea Systems Command, reflecting Lockheed Martin's core position in naval defense and its close collaboration with government entities.
See More
Impact of Iran Tensions on Airline Stocks
- Optimistic Airline Outlook: A quick de-escalation of tensions between the U.S. and Iran could lead to significant stock price surges for airlines like Delta Air Lines (DAL), as lower fuel costs would enhance earnings expectations; Delta's shares previously fell 23% during initial conflict escalations.
- Pipeline Stock Potential: In a prolonged stalemate, Enbridge (ENB), the largest natural gas utility in North America, transporting about 30% of crude oil, is expected to benefit from robust energy demand, even as oil prices stabilize at normal levels.
- Defense Stock Growth: Lockheed Martin (LMT) holds a record backlog of $194 billion as of the end of 2025, and an increase in missile orders from the U.S. and Israel could significantly boost its revenue, highlighting strong demand amid geopolitical tensions.
- Reconstruction Opportunities: Should regime change occur in Iran, Caterpillar (CAT), the world's largest construction equipment manufacturer, stands to gain from infrastructure rebuilding efforts; despite current market volatility, Caterpillar's stock has remained relatively stable, indicating its resilience in uncertain times.
See More
Three Scenarios for the Iran Crisis and Investment Strategies
- Quick De-escalation Outlook: President Trump recently indicated “very good and productive” talks with Iran, suggesting that if tensions ease quickly, Delta Air Lines (DAL) could see a significant stock price surge due to lower fuel costs, leading to a notable market rally.
- Prolonged Stalemate Impact: In a scenario of continued stalemate between the U.S. and Iran, while oil prices may stabilize, Enbridge (ENB), a major North American pipeline company, is expected to benefit from robust energy demand, maintaining a stable market performance.
- Escalation and Reconstruction Opportunities: Should the situation escalate leading to regime change in Iran, Caterpillar (CAT), the world's largest construction equipment manufacturer, stands to gain significantly from increased infrastructure investments during the rebuilding phase.
- Anti-fragile Investment Strategy: Given the uncertainty surrounding the Iran crisis, investors should focus on “anti-fragile” stocks, with Enbridge being highlighted as the best choice due to its ability to perform well across various market conditions.
See More
Opportunities in Investing During Uncertainty
- Market Volatility Impact: Geopolitical conflicts have led to significant market volatility, with the S&P 500 dropping approximately 5-10% during the 2022 Russia-Ukraine war, resulting in an estimated $1.3 trillion loss for the global economy, highlighting the profound impact of war on economic stability.
- Historical Recovery Patterns: Despite initial declines, historical data shows that many markets recover a substantial portion of their losses within a year, with sectors like energy, defense, and commodities delivering strong returns, indicating opportunities for long-term investors to accumulate assets at lower valuations during downturns.
- Asset Allocation Strategy: Given the current geopolitical tensions in the Middle East and inflation concerns, investors are advised to diversify across multiple asset classes, particularly in stocks from sectors like defense, energy, and infrastructure, which tend to perform relatively better during market downturns.
- Safe-Haven Role of Gold and Commodities: Gold and commodities typically perform well during geopolitical uncertainty and inflationary periods, with rising oil prices and increased demand for safe-haven assets like gold and silver in 2026, underscoring the importance of diversification in uncertain environments.
See More
Trump Claims US and Iran Are in Negotiations
- Negotiation Dynamics: Trump stated that the U.S. and Iran are currently in negotiations, despite Iran's denial of direct talks with Washington, which could significantly impact international relations and stability in the Middle East.
- Military and Diplomatic Parallelism: Trump's decision to back off from threats against Iranian energy infrastructure indicates that military actions will continue during negotiations, potentially leading to a reassessment of U.S. military strategy in the region.
- Funding Requests and Troop Deployment: The Trump administration plans to request up to $200 billion in war-related supplemental funding from Congress while preparing to deploy approximately 3,000 soldiers from the 82nd Airborne Division to the Middle East, showcasing a robust U.S. military presence in the region.
- Pakistan's Mediation Proposal: Pakistani Prime Minister expressed willingness to facilitate talks between the U.S. and Iran, with Trump sharing this proposal on social media, although the White House emphasized that negotiations will not occur through the media, reflecting the complexities of diplomatic efforts.
See More
Lockheed Martin Corporation:
Company Overview: Lockheed Martin Corporation is a global aerospace, defense, and security company known for its advanced technology and innovation in military and civilian sectors.
Recent Developments: The company has been involved in various contracts and partnerships aimed at enhancing national security and advancing aerospace capabilities.
Financial Performance: Lockheed Martin has reported strong financial results, driven by increased demand for defense products and services amid global security challenges.
Future Outlook: The company is focusing on expanding its portfolio in emerging technologies, including artificial intelligence and cybersecurity, to maintain its competitive edge in the industry.
See More
Lockheed Martin Secures ~$478M Contract for Submarine Imaging System
- Significant Contract Value: Lockheed Martin's Rotary and Mission Systems has been awarded a ~$478 million IDIQ contract for engineering and technical support of the Integrated Submarine Imaging System for both new and in-service submarines, highlighting strong demand in the defense sector.
- Potential Value Increase: The contract includes options that could raise its total value to approximately $1.19 billion if fully exercised, indicating the company's long-term strategic positioning and profit potential in the submarine technology support market.
- Project Execution Location: Work will be performed in Manassas, Virginia, with an expected completion date of March 2036, providing the company with a stable revenue stream and project management opportunities over the long term.
- Navy Systems Command Oversight: The contract is awarded by the Naval Sea Systems Command, reflecting Lockheed Martin's core position in naval defense and its close collaboration with government entities.
See More
Impact of Iran Tensions on Airline Stocks
- Optimistic Airline Outlook: A quick de-escalation of tensions between the U.S. and Iran could lead to significant stock price surges for airlines like Delta Air Lines (DAL), as lower fuel costs would enhance earnings expectations; Delta's shares previously fell 23% during initial conflict escalations.
- Pipeline Stock Potential: In a prolonged stalemate, Enbridge (ENB), the largest natural gas utility in North America, transporting about 30% of crude oil, is expected to benefit from robust energy demand, even as oil prices stabilize at normal levels.
- Defense Stock Growth: Lockheed Martin (LMT) holds a record backlog of $194 billion as of the end of 2025, and an increase in missile orders from the U.S. and Israel could significantly boost its revenue, highlighting strong demand amid geopolitical tensions.
- Reconstruction Opportunities: Should regime change occur in Iran, Caterpillar (CAT), the world's largest construction equipment manufacturer, stands to gain from infrastructure rebuilding efforts; despite current market volatility, Caterpillar's stock has remained relatively stable, indicating its resilience in uncertain times.
See More
Three Scenarios for the Iran Crisis and Investment Strategies
- Quick De-escalation Outlook: President Trump recently indicated “very good and productive” talks with Iran, suggesting that if tensions ease quickly, Delta Air Lines (DAL) could see a significant stock price surge due to lower fuel costs, leading to a notable market rally.
- Prolonged Stalemate Impact: In a scenario of continued stalemate between the U.S. and Iran, while oil prices may stabilize, Enbridge (ENB), a major North American pipeline company, is expected to benefit from robust energy demand, maintaining a stable market performance.
- Escalation and Reconstruction Opportunities: Should the situation escalate leading to regime change in Iran, Caterpillar (CAT), the world's largest construction equipment manufacturer, stands to gain significantly from increased infrastructure investments during the rebuilding phase.
- Anti-fragile Investment Strategy: Given the uncertainty surrounding the Iran crisis, investors should focus on “anti-fragile” stocks, with Enbridge being highlighted as the best choice due to its ability to perform well across various market conditions.
See More
Opportunities in Investing During Uncertainty
- Market Volatility Impact: Geopolitical conflicts have led to significant market volatility, with the S&P 500 dropping approximately 5-10% during the 2022 Russia-Ukraine war, resulting in an estimated $1.3 trillion loss for the global economy, highlighting the profound impact of war on economic stability.
- Historical Recovery Patterns: Despite initial declines, historical data shows that many markets recover a substantial portion of their losses within a year, with sectors like energy, defense, and commodities delivering strong returns, indicating opportunities for long-term investors to accumulate assets at lower valuations during downturns.
- Asset Allocation Strategy: Given the current geopolitical tensions in the Middle East and inflation concerns, investors are advised to diversify across multiple asset classes, particularly in stocks from sectors like defense, energy, and infrastructure, which tend to perform relatively better during market downturns.
- Safe-Haven Role of Gold and Commodities: Gold and commodities typically perform well during geopolitical uncertainty and inflationary periods, with rising oil prices and increased demand for safe-haven assets like gold and silver in 2026, underscoring the importance of diversification in uncertain environments.
See More
Trump Claims US and Iran Are in Negotiations
- Negotiation Dynamics: Trump stated that the U.S. and Iran are currently in negotiations, despite Iran's denial of direct talks with Washington, which could significantly impact international relations and stability in the Middle East.
- Military and Diplomatic Parallelism: Trump's decision to back off from threats against Iranian energy infrastructure indicates that military actions will continue during negotiations, potentially leading to a reassessment of U.S. military strategy in the region.
- Funding Requests and Troop Deployment: The Trump administration plans to request up to $200 billion in war-related supplemental funding from Congress while preparing to deploy approximately 3,000 soldiers from the 82nd Airborne Division to the Middle East, showcasing a robust U.S. military presence in the region.
- Pakistan's Mediation Proposal: Pakistani Prime Minister expressed willingness to facilitate talks between the U.S. and Iran, with Trump sharing this proposal on social media, although the White House emphasized that negotiations will not occur through the media, reflecting the complexities of diplomatic efforts.
See More
