← Who reports today · Industrials
LMT · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
A sharply improved quarter as the absence of 2025's ~$1.6B classified-program and helicopter reach-forward losses drove operating margin from 4.1% to 12.4% and net income up over 5x, with Aeronautics and MFC (PAC-3/THAAD ramp) the main drivers and no fresh material one-offs this period.
Net Earnings
$1,836M
up 436.8% y/y
Total Sales
$20,063M
up 10.5% y/y
Operating Profit
$2,479M
up 231.4% y/y
Gross Profit
$2,446M
up 233.2% y/y
- Net Earnings +436.8% — higher consolidated operating profit, partly offset by higher income tax expense
Source
«Second quarter 2026 net earnings increased $1.5 billion and diluted earnings per share increased $6.48 primarily due to higher consolidated operating profit of $1.7 billion described above, partially offset by a $267 million increase in income tax expense.»
press release, 8-K - Total Sales +10.5% — higher volume across all segments and increased munitions production
Source
«Second quarter 2026 sales increased $1.9 billion, or 11%, driven by growth across all segments reflecting increased volume and munitions ramps.»
press release, 8-K
All figures in $M.
| Line item | Amount and change |
|---|---|
| Aeronautics | $8,112 · +9.3% |
| Missiles & Fire Control | $4,101 · +19.5% |
| Rotary & Mission Systems | $4,354 · +9.0% |
| Space | $3,496 · +5.7% |
| Total Sales | $20,063 · +10.5% |
| Operating Costs & Expenses | $17,617 · +1.1% |
| Gross Profit | $2,446 · +233.2% · 12.2% margin |
| Other Income, net | $33 · +136% |
| Operating Profit | $2,479 · +231.4% · 12.4% margin |
| Interest + Non-service Pension* | $346 · -9.9% |
| Other Non-operating Income, net | $45 · +7.1% |
| Earnings Before Taxes | $2,178 · +422.3% |
| Income Tax Expense | $342 · +356% · 15.7% rate |
| Net Earnings | $1,836 · +436.8% · $7.94 diluted EPS |
Verdict: a sharply improved quarter as the absence of 2025's ~$1.6B classified-program and helicopter reach-forward losses drove operating margin from 4.1% to 12.4% and net income up over 5x, with Aeronautics and MFC (PAC-3/THAAD ramp) the main drivers and no fresh material one-offs this period.
6-mo OCF $3,455M (+$1,845M y/y); free cash flow $2,626M; dividends $1.6B paid ($3.45/sh declared); no share buybacks in Q2 2026 (vs $500M in Q2 2025); pending $3.45B Ultra Maritime acquisition announced July 2026.
Source and notation
* marks non-cash / ≈ estimated. Source: Lockheed Martin Corporation press release / 10-Q (SEC EDGAR).
Open as an image: LMT, Q2 2026 (PNG) ↗ · for sharing and presentations · free to reuse, CC BY 4.0
Cite / embed this chart
Free to use in articles, research and social posts with credit to Who Reports Today and a link — licensed under CC BY 4.0 (terms).
Chart: “LMT Q2 2026: where the revenue went” by Who Reports Today, https://whoreportstoday.com/t/lmt/q2-2026. Licensed under CC BY 4.0.
<figure> <a href="https://whoreportstoday.com/t/lmt/q2-2026"><img src="https://whoreportstoday.com/t/lmt/q2-2026/sankey.png" alt="LMT Q2 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/lmt/q2-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
https://whoreportstoday.com/t/lmt/q2-2026/sankey.png
<a href="https://whoreportstoday.com/t/lmt/q2-2026">LMT Q2 2026 earnings chart (Who Reports Today)</a>
This is an archived report: the image at this link won’t change. If you change the chart (crop, translate), say so in the credit. Company logos and trademarks are not covered by the license.
- Q2 2025 was depressed by ~$1.6B of reach-forward losses ($950M classified Aeronautics program, $570M Canadian Maritime Helicopter, $95M Türkish helicopter program), making y/y comparisons look unusually strong rather than reflecting pure operational improvement.
- Net profit booking rate adjustments swung from -$1,045M (Q2 2025) to +$375M (Q2 2026) across segments, a major swing factor embedded in segment operating profit.
- Aeronautics operating margin flipped from -1.3% to 9.4%; RMS from -4.3% to 10.0%, both mechanically driven by the absence of prior-year charges.
- FAS/CAS pension operating adjustment remains a large non-cash favorable item ($422M this quarter) boosting operating profit versus segment-only totals.
- Effective tax rate fell to 15.7% from 18.0%, aided by lower interest on uncertain tax positions and Tax Act provisions (no CAMT liability expected in 2026).
- No share repurchases occurred in Q2 2026 (vs $500M in Q2 2025), so per-share metrics benefit less from buybacks and more from the earnings recovery itself.
What distorts the picture in this report and what to watch beyond the headlines.
LMT — Lockheed Martin Corporation is a global aerospace and defense company specializing in advanced technology systems and weapons.
It is headquartered in Maryland, USA.
More reports: LUV · Q3 2026 · MAS · Q3 2026 · MMM · Q3 2026 · NDSN · Q3 FY2026 · NOC · Q3 2026 · NSC · Q3 2026 · ODFL · Q3 2026 · OTIS · Q2 2026 · PAYX · Q1 FY2027 · PCAR · Q3 2026 · all reports