Lockheed Martin (LMT) Stock Forecast & Price Target

Lockheed Martin's financial performance demonstrates robust growth, highlighted by a 10.6% year-over-year revenue increase in its Missiles and Fire Control (MFC) segment, driven by heightened demand for programs such as JASSM and LRASM. Additionally, the Aeronautics segment reported a revenue rise of 1.9% year-over-year, primarily attributed to increased volumes of the F-35 Joint Strike Fighter, which remains a significant revenue contributor. With expectations for continued strong growth in the MFC segment—projected at approximately 12% through 2025—augmented by increasing global funding for missile and defense systems, Lockheed Martin is well-positioned for sustained financial strength.

Lockheed Martin has experienced a significant decline in financial performance, as evidenced by a reduction in FY26 free cash flow guidance to approximately $6 billion, indicating a year-over-year contraction in growth expectations. The company reported disappointing results for 2Q25, with a revenue miss of 2%, a 71% shortfall in segment operating income, and a staggering 78% decrease in earnings per share, largely driven by approximately $1.6 billion in program losses. Additionally, the substantial erosion in operating margins across its key segments—most notably a 1160 basis point decline in aeronautics—has contributed to diminished investor confidence regarding the company's program execution and future profitability.