Why Lockheed Martin Stock Jumped 50%?

-17.23%
Downside
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Market
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Trefis
LMT: Lockheed Martin logo
LMT
Lockheed Martin

Between August 7, 2025, and February 3, 2026, Lockheed Martin (LMT)’s stock soared 48%, fueled not just by solid earnings and a robust backlog, but also by market optimism around a missile production boost and a thriving F-35 program—sparking a surge in profits and investor confidence.

Below is an analytical breakdown of stock movement into key contributing metrics.

  8072025 2032026 Change
Stock Price ($) 424.4 628.3 48.0%
Change Contribution By:
Total Revenues ($ Mil) 71,844.0 75,048.0 4.5%
Net Income Margin (%) 5.9% 6.7% 14.2%
P/E Multiple 23.6 28.9 22.7%
Shares Outstanding (Mil) 233.5 230.9 1.1%
Cumulative Contribution 48.0%

So what is happening here? The stock surged 48%, driven by a 4.5% rise in revenue, a 14% boost in net margin, and a 23% jump in the P/E multiple. Let’s explore the key events behind these shifts.

Here Is Why Lockheed Martin Stock Moved

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  • Q4 2025 Earnings Beat: LMT exceeded Q4 2025 EPS and revenue forecasts on Jan 29, 2026, boosting confidence.
  • Record Backlog: The company reported a record $194B backlog at year-end 2025, indicating robust future demand.
  • Strong 2026 Outlook: Management projected 5% sales growth and 25%+ op profit growth for 2026.
  • Missile Production Hike: Agreements to quadruple THAAD and triple PAC-3 MSE interceptor production.
  • F-35 Program Strength: Record 191 F-35 deliveries in 2025, driven by strong domestic and global demand.

Our Current Assesment Of LMT Stock

Opinion: We currently find LMT stock fairly priced. Why so? Have a look at the full story. Read Buy or Sell LMT Stock to see what drives our current opinion.

Risk: A good way to gauge LMT’s risk is by checking its drops in past market crises. It fell about 62% in the Dot-Com crash, 51% in the Global Financial Crisis, and 37% during the Covid pandemic. Even smaller shocks like the 2018 correction and the recent inflation shock knocked it down around 30% and 20%, respectively. Solid companies can still take big hits when the market turns sour.

LMT stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.