Lockheed Martin Reports Strong Q4 Earnings Amid Defense Spending Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
0mins
Should l Buy LMT?
Source: seekingalpha
Lockheed Martin's stock fell 5.01% and hit a 5-day low amid a broader market decline, with the Nasdaq-100 down 1.85% and the S&P 500 down 0.58%.
The company reported strong Q4 2025 earnings with a 9% sales increase to $20.3 billion and net earnings of $1.344 billion, translating to $5.80 per share. Additionally, Lockheed Martin signed an agreement to quadruple THAAD interceptor production, enhancing U.S. missile defense capabilities. Despite these positive developments, the stock's decline reflects sector rotation as investors react to broader market weakness.
The implications of Lockheed Martin's strong earnings and production agreements suggest a robust outlook for the defense sector. However, the stock's current performance indicates that market conditions are influencing investor sentiment, leading to a cautious approach despite the company's positive fundamentals.
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Analyst Views on LMT
Wall Street analysts forecast LMT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LMT is 535.50 USD with a low forecast of 430.00 USD and a high forecast of 605.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 609.180
Low
430.00
Averages
535.50
High
605.00
Current: 609.180
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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