Lockheed Martin Up 26% on $194B Backlog and 6% Sales Growth
Lockheed Martin shares jumped 26% in 2026, propelled by a $194 billion backlog, 6% sales growth and expectations of a $1.5 trillion defense budget, while the stock now trades at a near-30 P/E ratio. Escalating U.S.–Iran tensions carrying a risk premium on global energy benchmarks could sustain strong demand for defense contractors.
1. Strong Backlog and Sales Growth
Lockheed Martin’s shares are up 26% in 2026, supported by a backlog of $194 billion and 6% year-on-year sales growth. Management’s 2026 guidance forecasts continued revenue expansion driven by missile systems and aeronautics programs.
2. Valuation Metrics
The stock now trades at a trailing P/E near 30, raising valuation concerns despite a 2.2% dividend yield. Multiple expansion has accounted for a significant portion of gains, prompting debate over fair value.
3. Geopolitical Tensions' Impact
Heightened U.S.–Iran tensions have maintained a risk premium on energy benchmarks, underlining the potential for elevated defense spending. Market participants view sustained conflict risk as a catalyst for ongoing contract wins in regional defense and missile interception projects.