LMT Stock Sees Biggest Single-Day Rally In Nearly 25 Years As Lockheed Posts Record Backlog – Retail Says Defense Sector Getting Harder To Ignore

• Lockheed Martin raised its fiscal 2026 sales guidance to $79.75 billion to $81.75 billion, up from its previous forecast of $77.50 billion to $80.00 billion.
• The company’s second quarter sales came in at $20.1 billion, beating Street estimates of $19.3 billion, according to Fiscal.ai data.
• LMT breached its 100-day moving average for the first time in over three months.

Defense giant Lockheed Martin (LMT) was in the limelight on Thursday, with shares posting their biggest single-day gain since September 2001, after the company delivered stronger-than-expected second-quarter results, raised its full-year outlook, and reported a record backlog.

At the time of writing, LMT shares were up 11% and breached their 100-day moving average (100-DMA) for the first time in over three months.

LMT Ups Fiscal 2026 Guidance As Backlogs Hit All-Time High

Lockheed Martin raised its fiscal 2026 sales guidance to $79.75 billion to $81.75 billion, up from its previous forecast of $77.50 billion to $80.00 billion, while lifting its earnings per share outlook to $29.95 to $30.65 from $29.35 to $30.25.

The Maryland-headquartered firm said its long-term growth outlook is supported by several major contract wins, including a $35 billion THAAD contract, a $3 billion GMLRS award, a $1.1 billion HIMARS deal, and a $2.3 billion radar contract, which are expected to drive production and expand its backlog, which came in at a record $230 billion in Q2.

Management also cited sustained demand for the F-35 fighter jet, increasing orders from allied nations, and a growing munitions backlog as key drivers for future growth.

“Our backlog reached a new all-time high, now $230 billion. We generated nearly $3 billion in free cash flow. We accelerated our revenue growth and turned in higher earnings per share. Consequently, we are raising our 2026 guidance, reflecting our confidence that our strategy is gaining momentum, and we will continue to produce sustained profitable growth over the next few years,” said CEO Jim Taiclet in a call with analysts.

Q2 Sales Boosted By Gains Across All Segments

Lockheed Martin reported a strong second quarter, with sales rising 11% year over year to $20.1 billion, beating Wall Street estimates of $19.3 billion, according to Fiscal.ai data. The company said the increase was driven by growth across aeronautics, missiles and fire control, rotary and mission systems, and space segments.

Net earnings increased by $1.5 billion, while earnings per share (EPS) rose to $7.94, above Street estimates of $7.18. The improvement was primarily driven by a sharp increase in operating profit, benefiting from the absence of program-related losses recorded a year earlier, along with favorable pension-related adjustments, the company said.

Retail Says Defense Sector Momentum To Continue

Retail sentiment surrounding LMT on Stocktwits changed to ‘extremely bullish’ from ‘bullish’ over the past 24 hours, amid a 270% increase in message volumes.  

One user said “a stronger backlog means better future revenue visibility,” adding that the defense sector is “getting harder for investors to ignore”.

Another user said the “defence cycle doesn’t look like a one-quarter event.”

LMT shares have gained around 15% so far this year.

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