Lockheed Martin’s F-35 Jets Take A Hit In Trump’s 2026 Defense Budget, Missiles And Drones Get A Boost

Lockheed Martin (LMT) could see a shift in funds coming in from the government under President Donald Trump’s proposed 2026 defense budget, posted on Wednesday, which prioritizes missile systems and drones over high-cost fighter jets and naval expansion. 

The budget proposed cutting the Pentagon’s planned procurement of Lockheed’s F-35 fighter jets, which is the company’s flagship program, to 47 from 68 in Biden’s fiscal 2025 request – a 31% drop.

Lockheed’s stock edged 0.1% lower in pre-market trade on Thursday, with retail sentiment on Stocktwits holding steady in ‘bullish’ territory over the last 24 hours. 

According to a Reuters report, the budget has already ruffled some feathers in Washington, where a draft version of the House Defense Appropriations bill calls for buying 69 F-25 jets, one more than Biden’s 2025 request. 

The Pentagon plans to increase investments in the Joint Air-to-Surface Standoff Missile – Extended Range (JASSM-ER), the Long-Range Anti-Ship Missile (LRASM), and the Precision Strike Missile (PrSM), all produced by Lockheed. While the number of PrSM units ordered may decline this cycle, the broader push toward high-end munitions bodes well for the company’s missile division.

The budget also calls for more spending on small drones, citing lessons from the war in Ukraine. Lockheed has been expanding its footprint in unmanned systems, making this a potential growth area.

Procurement of a Virginia-class submarine, built jointly by General Dynamics (GD) and Huntington Ingalls Industries (HII), and 15 more ships will be covered under a separate Navy funding bill.

Lockheed may get a bigger piece of the pie when the budget request for Trump’s ‘Golden Dome’ missile defense shield is announced separately. Earlier this month, at the Paris Air Show, Lockheed executives were spotted telling reporters that the company has multiple platforms that align with the administration’s objectives for the program. 

“We clearly have a whole number of product lines that will contribute very well, that are going to fit very well with what is necessary to achieve the mission,” said Lockheed’s President of Missiles and Fire Control, Tim Cahill. 

Shares of Lockheed Martin have fallen over 5% this year and 2% over the past 12 months. 

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