# Lockheed Martin Stock Q3 2026: Sales Up 11% as Backlog Reaches $292bn
> Lockheed Martin stock Q3 2026: sales rose 11% to $20.71bn, backlog reached $292.0bn on a $52.5bn PAC-3 award and EPS rose 15% to $7.97, and guidance rose.

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## Facts
- Ticker: LMT
- QSILabs fair value: $416.69 USD
- Price: $643.15 (as of 2026-11-02)
- As of: Q3 2026 results (quarter ended 2026-09-27, reported 2026-10-22); balance sheet from Form 10-Q for the quarter ended 2026-09-27; price as of 2026-11-02 close
- Fiscal period: Q3 2026 (July-September 2026)
- Published: 2026-11-02
- Updated: 2026-11-02
- Author: QSI Labs Research
- Canonical: https://www.quantitativesuperintelligencelabs.com/research/lockheed-martin-stock-q3-2026-earnings-backlog-munitions/

## Short answer
Lockheed Martin stock Q3 2026 is a story of a much bigger order book and a share price that has run ahead of the cash flows. Lockheed Martin reported sales of $20,711m for the three months to 27 September 2026, up 11.3%, and net earnings of $1,845m, or $7.97 a share, up 14%. Backlog rose 27% in the quarter to $292.0bn, which Lockheed called a record, mainly because of a $52.5bn multi-year award for PAC-3 MSE interceptors, and the company raised its 2026 outlook for sales, earnings per share and free cash flow for the second quarter in a row. The shares rose 7.0% on results day and closed at $643.15 on 2 November 2026, up 33.0% for the year. Our discounted cash flow model values the shares at $416.69, about 0.65 times the price; the gap comes mainly from a 10.31% cost of capital built on the defence industry's beta, while Lockheed's own share price has barely moved with the market.

## Key takeaways
- Sales grew 11%. Sales were $20,711m, up from $18,609m, and all four business segments grew. Missiles and Fire Control grew fastest, by 24%, on PAC-3, THAAD, GMLRS and PrSM production ramps.
- Profit grew faster than sales. Net earnings rose 14.0% to $1,845m and diluted earnings per share rose to $7.97 from $6.95. The effective tax rate fell to 15.1% from 16.5%.
- The order book jumped. Backlog was $291,984m at 27 September, up from $230.4bn at the end of June and $193.6bn at the end of 2025. Missiles and Fire Control backlog more than tripled in nine months to $142.5bn.
- Guidance went up again. Lockheed now expects 2026 sales of about $80bn to $82bn, earnings per share of about $30.35 to $30.75 and free cash flow of about $7.8bn to $8.0bn, up from $7.0bn to $7.2bn in July.
- 2027 should grow too. Chief financial officer Evan Scott said Lockheed sees "clear line of sight to high single-digit revenue growth next year as a company", and expects a pension contribution of more than $1bn next year.
- Our value: $416.69 a share, against a $643.15 close on 2 November 2026. Across costs of capital from 9.31% to 11.31% and terminal growth from 1.5% to 3.5% the model gives $353.79 to $515.53. Analysts' average target is $652.57.
- What to watch. The F-35 Lot 20 contract, where Lockheed's costs now exceed its funding; the closing of the $3.45bn Ultra Maritime acquisition; problems at United Launch Alliance; and 2027 guidance in January.

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