Lockheed Martin Shares Reach Unprecedented Highs on Robust Performance

Driven by a formidable order backlog and quarterly results that surpassed market expectations, Lockheed Martin Corporation's stock achieved a record closing price this week. The defense contractor's shares finished Friday's trading session at $633.09, reflecting strong investor confidence.

The Bethesda-based aerospace and defense giant reported a 9% year-over-year revenue increase for its fourth quarter, generating $20.3 billion. Earnings per share for the period came in at $5.80.

A significant contributor to this performance was the Missiles and Fire Control division. This segment saw its revenue surge by 18% during the final quarter to $4.02 billion, a jump primarily attributed to the accelerated production of tactical missile systems.

Financial Outlook and Market Position

Looking ahead to the full 2026 fiscal year, company leadership has provided an optimistic forecast. Lockheed Martin anticipates revenue in the range of $77.5 billion to $80.0 billion. Projected earnings per share are expected to fall between $29.35 and $30.25.

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The company's financial health is further underscored by a book-to-bill ratio of 1.2 and an order backlog approaching the $200 billion mark, standing at a historic $194 billion. This provides substantial visibility for future revenue. Additionally, the return on equity has now exceeded 62%, highlighting the stability and efficiency of its business model.

Analyst Reactions and Price Targets

The strong quarterly report prompted several analyst firms to adjust their valuations. On January 30, Truist Securities raised its price target to $695, citing the improved outlook and the record volume of contracted work. Earlier in January, Jefferies had also increased its target, though to a more conservative $540.

The equity's current trading price sits just below its 52-week high of $645.67. Market observers suggest that the coming quarter will be crucial in demonstrating Lockheed Martin's ability to execute on its ambitious annual targets.