TLDR
- Jim Cramer called LMT “sensational” on CNBC’s Mad Money, citing strong fundamentals
- Q2 2026 net earnings hit $1.836 billion, up from $342 million in Q2 2025
- Record backlog of $230.4 billion, driven by $65 billion in new orders during the quarter
- Over $90 billion in contract awards across PAC-3 and THAAD missile programs
- Full-year 2026 EPS guidance raised to $29.95-$30.65; LMT is up 21.12% year-to-date
Lockheed Martin (LMT) opened at $587.12 on Friday, up 0.7% on the day, and is up 21.12% year-to-date, well ahead of the S&P 500’s 12.92% return over the same period.
Lockheed Martin Corporation, LMT
Jim Cramer made no effort to hedge his view on Mad Money’s Lightning Round on August 6. He called the stock “sensational” and CEO Jim Taiclet “fantastic.” That’s about as direct as it gets from Cramer.
The Q2 2026 numbers back him up. Net sales came in at $20.1 billion, up 11% year-over-year. Diluted EPS hit $7.94, versus $1.46 in Q2 2025. Free cash flow was $2.9 billion, compared to negative $150 million a year ago.
A year ago, program losses of $1.6 billion dragged net earnings down to $342 million. In Q2 2026, net earnings reached $1.836 billion. That is not just a beat. It is a turnaround.
Business segment operating profit rose 279% year-over-year to $2.162 billion. The Missiles and Fire Control segment led the way, with sales of $4.1 billion, up 19% year-over-year, and operating profit up 24%.
Record Backlog and Major Contract Wins
Lockheed ended Q2 with a record backlog of $230.4 billion, up from $193.6 billion at year-end 2025. The company brought in $65 billion in new orders during the quarter alone.
That backlog represents roughly three years of revenue at the current run rate. It gives the company a level of forward visibility that most defense contractors can only aim for.
The contracts driving that backlog are large. In July 2026, Lockheed received a seven-year contract modification worth up to $53.86 billion for PAC-3 Missile Segment Enhancement interceptors. In June, it secured up to $35 billion for THAAD interceptors. Earlier this year, it added a $1.9 billion extension for the C-130J training program.
That is over $90 billion across two missile programs in a matter of weeks.
To support production, Lockheed announced an $8 billion to $9 billion investment plan through 2030 to expand more than 20 manufacturing facilities across the U.S. New facilities are breaking ground in Camden, Arkansas, and Troy, Alabama.
Wall Street Still Cautious
Despite the numbers, Wall Street remains measured. The consensus rating is “Hold” with an average price target of $626.33. JPMorgan has a price target of $620. Wells Fargo set a $600 target. TD Cowen actually cut its target from $600 to $560.
Wall Street Zen and DZ Bank are outliers, both raising LMT to “strong buy.” But most analysts are sitting on the fence.
Lockheed raised its full-year 2026 EPS guidance to $29.95-$30.65. Full-year free cash flow guidance was lifted to $7.0 billion-$7.2 billion. Net sales are now projected at $79.75 billion-$81.75 billion, representing approximately 8% year-over-year growth.
The company also declared a quarterly dividend of $3.45 per share, payable September 25, with a 2.4% annual yield. Institutional investors hold 74.19% of the stock. Victrix Investment Advisors increased its LMT stake by 15.4% in Q2, bringing its holding to around $7.07 million.
LMT has a 1-year high of $692.00 and a 1-year low of $423.91.
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