Lockheed Martin Corporation (NYSE:LMT) reported first-quarter results that came in below market expectations, sending its shares down 6.3% in premarket trading.
The defense group posted adjusted earnings of $6.44 per share on revenue of $18.0 billion, missing analyst forecasts of $6.74 per share and $18.26 billion. Revenue was unchanged compared with $18.0 billion in the same period last year, while net income declined to $1.5 billion from $1.7 billion a year earlier.
Full-year outlook maintained despite weak quarter
Despite the softer quarterly performance, Lockheed Martin reaffirmed its 2026 guidance, forecasting annual sales between $77.5 billion and $80.0 billion and diluted earnings per share of $29.35 to $30.25. The midpoint of the revenue outlook, at $78.75 billion, aligns with analyst expectations, while the company anticipates free cash flow of $6.5 billion to $6.8 billion.
“Lockheed Martin’s superior capabilities in delivering advanced defense technology and systems and in space exploration have been proven again and again in 2026,” said Jim Taiclet, chairman, president and CEO. “Our Orion spacecraft safely carried the crew farther from Earth than ever before during NASA’s historic Artemis II mission, concluding with a precisely executed re-entry and splashdown.”
Segment performance pressured by Aeronautics
Operating profit across business segments fell by $262 million, or 13%, to $1.8 billion, mainly due to weaker profit booking adjustments in the Aeronautics division and the absence of favorable items seen in the prior-year period.
The Aeronautics unit recorded $125 million in unfavorable adjustments related to the F-16 program, driven by production issues and delays in development.