Lockheed Martin raises 2026 outlook as sales of jets and weapon systems grow

In this photo taken released by U.S. Air Force, Tech. Sgt. Brian West watches an F-35 Lightning II approach for the first time at Eglin Air Force Base, Fla. (U.S. Air Force, Samuel King Jr.)

Lockheed Martin on Thursday forecast 2026 profit and revenue above Wall Street expectations, citing continued demand for its fighter jets and weapons systems.

Conflicts in the Middle East and a protracted Russia-Ukraine war have led to a surge in demand for arms, driving sales for defense contractors like Lockheed.

Geopolitical tensions have also been further heightened by the capture of the Venezuelan president by U.S. forces.

Lockheed’s F-35 and F-22 fighter jets, RQ-170 stealth drones and Sikorsky Black Hawk helicopters were used in the operation, CEO Jim Taiclet said in the release.

• Latest updates on company news here

Earlier this month, Lockheed clinched a seven-year agreement with the Department of War to boost production of Patriot PAC-3 missile interceptors to 2,000 units annually, up from 600.

Separately, Lockheed also said on Thursday that it had reached a deal with the DoW to more than quadruple production of its Terminal High Altitude Area Defense, or THAAD, missile interceptors to 400 per year, up from 96 previously.

During the fourth quarter, the company’s missiles business, maker of the Patriot system, posted the fastest sales growth, up 17.8 per cent from a year ago.

Quarterly sales for its aeronautics segment, which is the leading segment by revenue and makes the F-35 jets, rose 6.4 per cent.

In January, Lockheed said it delivered a record 191 F-35 fighter jets in 2025, up from 110 jets in 2024.

• Latest updates on international news here

The F-35 is the Pentagon’s largest acquisition program, with lifetime costs estimated at more than US$2 trillion for purchasing, operating and maintaining the aircraft.

U.S. President Donald Trump in January signed an order for defense firms linking dividends, share buybacks and executive pay to weapons delivery schedules, introducing uncertainty around capital returns.

Peers RTX and Northrop Grumman have reaffirmed their commitment to dividends, although Northrop said it would pause buybacks beyond January.

In 2025, Lockheed paid $3.13 billion in dividends, a rise from $3.06 billion the previous year.

Lockheed forecast 2026 revenue of $77.5 billion to $80 billion, above analysts’ estimates of $77.83 billion, according to LSEG-compiled data.

It expects profit per share between $29.35 and $30.25, versus expectations of $29.28.

The Maryland-based company reported a quarterly revenue of $20.32 billion, up from $18.62 billion.

(Reporting by Aishwarya Jain in Bengaluru; Editing by Vijay Kishore and Louise Heavens)