The U.S. Department of Defense has outlined plans to raise annual spending from approximately $840 billion in fiscal 2025 to $1.5 trillion by 2027. This represents a compound annual growth rate of nearly 30% over two years and reflects congressional momentum behind modernizing air, missile and space systems. Lockheed Martin stands to benefit directly from allocations in the President’s budget request, which earmarks $120 billion for tactical fighter aircraft, $85 billion for missile defense and $60 billion for classified research programs through the end of the decade.

Lockheed Martin’s F-35 Lightning II joint strike fighter is slated to receive an incremental $15 billion in procurement funds in fiscal 2026, driving production rates from 150 to 180 jets per year. The THAAD and Aegis missile defense portfolios are also projected to see combined year-over-year contract awards increase by 25% through 2028. In addition, the company’s Hypersonic Conventional Strike Weapon program is anticipated to enter low-rate initial production in 2027, supported by a $2.3 billion R&D allocation in next year’s budget.

Analyst consensus forecasts Lockheed Martin will register revenue growth of 7% in fiscal 2026, buoyed by higher defense appropriations and backlog expansion to $155 billion. Free cash flow is forecast to exceed $6 billion, enabling continued dividend increases and opportunistic share repurchases. Investors will closely monitor final congressional appropriations, but the latest budget framework underpins a stable multi-year revenue runway for Lockheed Martin’s core aerospace and missile defense businesses.