Lockheed Martin Stock Rises Over 3% on $194B Backlog and 5% Sales Growth Forecast
Lockheed Martin shares jumped more than 3% after U.S. and Israeli strikes on Iran, reflecting increased defense spending expectations. The company reported a record $194 billion backlog in Q4 and forecast FY26 sales growth of 5% to $78.84 billion with EPS rising 29% to $29.81.
1. Stock Reaction to Middle East Strikes
Lockheed Martin shares gained more than 3% on Monday as U.S. and Israeli weekend strikes on Iran heightened expectations for increased defense spending and procurement. Bargain-hunting investors bid up the stock, reflecting confidence in a defense supercycle with European budgets rising and U.S. defense funding set to expand.
2. Record Backlog and Financial Guidance
The company reported a record $194 billion order backlog in its Q4 earnings and projected FY26 sales to rise 5% to $78.84 billion with EPS climbing 29% to $29.81. This backlog underscores significant contracted work extending into 2028 across fighter jets, missile defense systems and other advanced weapons.
3. Valuation and Dividend Appeal
Trading at roughly 2X forward sales and 22X earnings, the stock remains below the S&P 500 and aerospace-defense peer averages, offering relative value. A 2% annual dividend yield also exceeds most industry peers, reinforcing appeal for income-seeking investors amid rising geopolitical tensions.