Lockheed Martin (LMT) shares rose 4.2% to $543.90 following a rating upgrade to “Buy” from Citi and the announcement of several major U.S. government defense contracts. Citi analyst John Godyn raised the price target to $582 from $571, citing the company’s fundamentals and growth in the missile and fire control segment.
Why is Lockheed Martin stock rising today?
The price jump stems from a combination of analyst optimism and a surge in confirmed government spending. According to Citi, the upgrade reflects strong momentum within the company’s missile and fire control business. This coincided with the U.S. Army awarding a $347.5 million contract to Lockheed Martin for the development and testing of prototype air and missile defense systems.
Further fueling the rally are two larger-scale agreements: a $35.5 billion Pentagon contract for THAAD interceptors and a $2.9 billion radar contract with the U.S. Army. These deals provide a concrete boost to the company’s backlog and future revenue projections.
How do these contracts compare to previous financial struggles?
The current momentum contrasts sharply with a volatile period 12 months ago. At that time, the stock dropped 6.6% after Lockheed Martin reported disappointing second-quarter results. The company recorded earnings of $1.46 per share, missing analyst expectations due to $1.6 billion in pre-tax losses across various programs.
The losses were primarily driven by a $950 million charge on a classified aeronautics program and additional losses tied to helicopter programs in Canada and Turkey. These setbacks forced the company to slash its full-year 2025 earnings per share (EPS) guidance to a range of $21.70–$22.00, down from the previous forecast of $27.00–$27.30.
| Metric | Previous Guidance | Revised Guidance |
|---|---|---|
| Full-Year 2025 EPS | $27.00 – $27.30 | $21.70 – $22.00 |
What is the long-term outlook for LMT investors?
Despite the recent rally, the stock remains significantly below its peak. Lockheed Martin is currently trading 19.6% below its 52-week high of $676.70, reached in March 2026. However, the year-to-date performance shows a gain of 9.4%.
For long-term holders, the growth remains positive. An investment of $1,000 in Lockheed Martin shares five years ago would be valued at $1,426 today. The primary driver for future stability appears to be the shift toward missile defense and radar systems, as evidenced by the recent multi-billion dollar Pentagon awards.
Frequently Asked Questions
Why did Citi upgrade Lockheed Martin?
Citi analyst John Godyn upgraded the stock to “Buy” and raised the price target to $582, citing strong company fundamentals and rapid growth in the missile and fire control segment.
What are the biggest recent contracts won by LMT?
The most significant recent deals include a $35.5 billion contract for THAAD interceptors, a $2.9 billion U.S. Army radar contract, and a $347.5 million contract for air and missile defense prototypes.
Is Lockheed Martin stock volatile?
No. According to market data, the stock is not very volatile, having experienced only one move greater than 5% over the past year.
What do you think about the current trajectory of defense spending? Does the shift toward missile defense make LMT a safer bet for your portfolio? Let us know in the comments below or subscribe to our newsletter for more deep-dives into aerospace and defense stocks.
