What's Happening?
Lockheed Martin Corporation's stock is currently facing challenges despite strong earnings and a record backlog. As of November 21, 2025, the stock closed at $460.78, down 1.6% on the day, and is valued
at approximately $107 billion. The stock is positioned 15.6% below its 52-week high and 12.4% above its 52-week low. Despite delivering earnings beats and raising its 2025 outlook, Lockheed Martin has underperformed its industry and the broader market over the past year. The company reported a revenue of $18.6 billion for Q3 2025, up 9% year-over-year, and an EPS of $6.95, surpassing analyst expectations. Lockheed Martin's backlog stands at about $179 billion, equivalent to more than 2.5 years of sales at the current run-rate. The company has raised its full-year 2025 guidance, projecting revenue between $74.25 billion and $74.75 billion and EPS between $22.15 and $22.35 per share.
Why It's Important?
Lockheed Martin's performance is crucial as it reflects broader trends in the defense industry, particularly in the context of record global military spending, which reached $2.72 trillion in 2024. The United States remains the largest spender, accounting for approximately 37% of global military outlays. Lockheed Martin's stock performance is significant for investors, as it highlights the challenges of balancing strong demand with program and budget uncertainties. The company's exposure to fighter jets, missile defense, and space systems positions it well in a market with rising defense budgets. However, the stock's underperformance compared to peers suggests investor concerns about program risks and budget uncertainties.
What's Next?
Lockheed Martin is expected to release its Q4 2025 earnings around January 27, 2026. Analysts anticipate EPS in the mid-$6 range, consistent with the company's full-year guidance. Investors will closely watch for any revisions to guidance, cash-flow commentary, and updates on key programs like the F-35. The next ex-dividend date is December 1, 2025, with a quarterly dividend of $3.45 per share. Lockheed Martin's long record of dividend growth supports expectations of continued capital returns. The stock's future performance will depend on whether the market starts to believe in the company's backlog, cash flow, and new technology initiatives.
Beyond the Headlines
Lockheed Martin's strategic moves in AI, autonomy, and advanced computing could drive future revenue growth. The company is investing in AI integration frameworks and quantum algorithms for aerospace and defense applications. These initiatives align with Lockheed Martin's '21st Century Security' strategy, potentially enhancing its premium valuations. Additionally, Lockheed Martin's diversification into non-traditional markets, such as firefighting helicopters, underscores its potential to open new civil and government markets. These efforts highlight the company's adaptability and potential for long-term growth beyond traditional defense sectors.
