LOCKHEED MARTIN CORP is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: Lockheed Martin's Q1 FY2026 revenue was nearly flat at $18.0B (+0.3% YoY), but profitability declined sharply with net income falling 13.1% to $1.49B and operating cash flow collapsing 84.4% to $220M, driven by rising costs and higher cost of revenue.
Drawn from management commentary in the Q1 2026 10-Q:
Total revenue grew only 0.3% YoY to $18.02B in Q1 FY2026 versus $17.96B in Q1 FY2025, suggesting that while defense demand remains robust, top-line growth has plateaued, likely reflecting program timing and delivery schedules.
Cost of revenue rose 1.9% YoY to $15.94B while revenue was nearly flat, compressing gross margin by approximately 140 basis points to 11.5% from 12.9%. This indicates meaningful cost inflation or unfavorable program mix impacting profitability.
Operating income fell 13.0% YoY to $2.06B and net income dropped 13.1% to $1.49B, reflecting the combined impact of higher costs and potentially increased interest expense on the growing long-term debt load of $20.53B.
Revenue
$18.02B
++0.32% YoY
EPS (Basic)
$6.47
-11.37% YoY
Gross Margin
11.5%
-1.40% YoY
Operating Income
$2.06B
-13.03% YoY
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